MCA CAR Filing - COVID-19

The Ministry of Corporate Affairs has introduced a new Form called CAR or Company Affirmation of Readiness towards COVID-19. This form must be filed by all companies and LLPs registered in India after it is unveiled on 23rd March 2020.

Coronavirus

The Novel Coronavirus (COVID-19) has affected over 110 countries, including India. To curtail the spread of Coronavirus, the Government has imposed strict lockdowns across major cities and towns in India. With no major remedy currently available for ending this pandemic, most Governments are recommending social distancing measures to deal with the public health situation. In the against COVID-19, the corporate sector would be required to play a key role, which is most crucial for reducing the rate and extent of the disease transmission at community level. Hence, the MCA has unveiled various measures towards the same for effective implementation of various measures to curb the Coronavirus transmission.

Remote Board Meetings

In order to ensure that there are no disruptions in Corporate Meetings due to various travel restrictions and lockdowns, the Ministry of Corporate Affairs has relaxed the rules with respect to meetings of Board and dispensed with the necessity of holding physical meetings on matters relating to approval of financial statements, board report, restructuring etc. up to 30th June, 2020.

Know more about Board Meeting through Video Conference.

Work from Home

Social distancing has evolved as the most impactful tool in the fight against COVID-19. Since companies and LLPs are major employers in most towns and cities, its important for all major employers to immediately implement "Work from home" policy as a temporary measure till 31st March, 2020. The requirement for continuation of "Work from home" policy would be reviewed and modified by the appropriate authorities as per the evolving situation. All companies and LLPs are expected to quickly implement the “Work from home” policy in their headquarters and field offices to the maximum extent possible, including by conduct of meetings through video conference or other electronic/ telephonic/ computerized means. Further, even with essential staff on duty, staggered timings may be followed so as to minimize physical interaction.

CAR Form Filing

In order to generate awareness about COVID-19 and get the companies / LLPs in India into a state of readiness, he Ministry of Corporate Affairs will introduce a new form called CAR. The web form will be used to assess the readiness of Corporates and LLPs with respect to the evolving COVID-19 threat and readiness in terms of "Work from home" policy. CAR (Company Affirmation of Readiness towards COVID-19) form should be filed by an authorized signatory of Companies & LLPs. All companies/LLPs are requested to report compliance using the form right from 23rd March, as soon as possible. The Government circular with respect to the above matter is reproduced below for ready reference:

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Frequently Asked Questions

Common questions about MCA CAR Filing COVID-19.

The CAR (Company Affirmation of Readiness towards COVID-19) form has been introduced by the MCA to assess the readiness of companies and LLPs in India with respect to the evolving COVID-19 threat. It aims to generate awareness about the pandemic and ensure that companies are prepared to implement measures like work from home to curb the transmission of the virus.

All companies and LLPs registered in India are required to file the CAR form. The form should be filed by an authorized signatory of the company or LLP as soon as possible, right from 23rd March 2020 when it was unveiled by the MCA.

The MCA has relaxed the rules for board meetings to ensure there are no disruptions in corporate meetings due to travel restrictions and lockdowns imposed in the wake of the COVID-19 pandemic. This measure allows companies to hold board meetings through video conferencing or other electronic means until 30th June 2020, without the necessity of physical meetings.

Companies and LLPs are major employers in most cities and towns. Implementing a work from home policy is crucial for maintaining social distancing, which has evolved as the most effective tool in the fight against COVID-19. The MCA has directed companies to implement work from home to the maximum extent possible as a temporary measure till 31st March 2020.

To ensure business continuity while implementing work from home, companies are advised to conduct meetings through video conferencing or other electronic, telephonic, or computerized means. For essential staff on duty, staggered timings may be followed to minimize physical interaction.

By introducing the CAR form, the government aims to generate awareness about COVID-19 among companies and LLPs in India. It also helps the government assess the readiness of corporates in terms of implementing measures like work from home to curb the spread of the virus.

The relaxation for holding board meetings through video conferencing or other electronic means, without the necessity of physical meetings, is applicable until 30th June 2020. The MCA has provided this relaxation to ensure there are no disruptions in corporate meetings due to the COVID-19 situation.

The MCA has directed companies to implement the work from home policy as a temporary measure till 31st March 2020. The requirement for continuing the policy beyond this date will be reviewed and modified by the appropriate authorities based on the evolving COVID-19 situation.

Companies and LLPs are required to report their compliance with the work from home policy by filing the CAR (Company Affirmation of Readiness towards COVID-19) form. This web form will be used by the MCA to assess the readiness of corporates in implementing the work from home policy.

The MCA's approach towards the COVID-19 situation is proactive and focused on curbing the transmission of the virus at the community level. The introduction of the CAR form, relaxation for remote board meetings, and directives for implementing work from home policies reflect the MCA's commitment to ensuring the corporate sector plays a key role in the fight against the pandemic.