New Delhi, March 24 (IANS) Government has provided big relief to the corporate sectors on compliance related issues particularly related to incorporation of businesses and qualifications of directors.
As per announcements made by the Finance Minister Nirmala Sitharman on Tuesday, a company has now been given six more months to file declaration of commencement of business. At present such declaration has to be made within six months from in corporation.
Directors of Indian registered companies have also been freedom from compliant with residency rules that mandates them to be in India for a minimum period of 182 days.
“Under Section 149 of the Companies Act., non compliance of this rule was treated as a violation. Now, it shall not be treated as a violation,” the Finance Minister said.
Government has also decided to give more flexibility to companies over the n eed to create a deposit reserve from 20 per cent of the deposits maturing in FY21 by April 30. This requirement can now be met by June 30.
Also, companies have been given time till June 30 to invest 15 per cent of d ebentures maturing during a year in specified instruments. The date of compl iance for this earlier was April, 30.