Incorporation of companies up 20% in FY21 despite pandemic: MCA

New Delhi, Feb 9 The number of new companies formed in the current financial year rose despite the pandemic as data from the Ministry of Corporate Affairs (MCA) shows that incorporation of companies increased by 20.56 per cent in FY 2020-21 as of December.

A total of over 1.13 lakh companies were incorporated during April 2020 to December 2020, against 93,754 companies during the same period of the last financial year, said the Minister of State for Finance and Corporate Affairs Anurag Thakur in a written reply to the Rajya Sabha.

Further, outlining the steps taken by the government to help and support the companies incorporated he said that the "Companies Fresh Start Scheme, 2020" was launched to make a fresh start for companies to be a fully compliant company by allowing them to file belated documents in MCA-21 Registry without any additional fees from April 1 to December 31, 2020.

The said scheme has also given immunity from prosecutions and proceedings for imposition of penalty which might arise on account of such delayed filing of documents.

"In the wake of Covid-19 and to provide relief to law abiding companies a scheme was launched for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 during the period from 01st March to 31st December, 2020," the minister said.

Among other measures he noted that the MCA has announced a Condonation of Delay Scheme for Companies restored by NCLT between December 1, 2020 and December 31, 2020 under section 252 of the Companies Act, 2013. The scheme provides to condone delay in filing forms with the registrar, and spares payment of additional fees.

This scheme will be in operation from February 1, 2021 and will be available for filing of any overdue e-forms by such companies till March 31, 2021.