Whalesbook
Purpose of the Scheme
The Ministry of Corporate Affairs (MCA) created this initiative to improve corporate governance and clear the backlog of company filings. It helps companies correct past non-compliance, which often comes with large penalties. The MCA aims to boost overall compliance, ease the financial pressure from accumulated extra fees, and keep the company registry accurate.
Fee Reductions Explained
Companies filing overdue e-forms between April 15 and July 15 will pay just 10% of the usual additional fee. For example, a filing delayed 300 days, normally costing ₹30,000 (₹100 daily), will now cost only ₹3,000. The scheme also offers reduced fees for companies seeking dormant status (half the normal fee) or closure (one-fourth the fee).
Getting Penalty Immunity
Companies can get immunity from penalties for certain filings. This applies to e-forms related to Sections 92 and 137 if they are filed before or within 30 days of receiving a notice from an adjudicating officer. Immunity from future legal action is also offered if forms are filed under the scheme and no prosecution or adjudication proceedings have already begun.
Key Exclusions to Note
Note that the usual filing fee for annual forms is not reduced. Also, the scheme does not provide immunity for failing to hold an Annual General Meeting (AGM) as required by Section 96. However, companies can still hold AGMs for past years, approve financial statements, and then file the updated forms under this scheme.
Final Warning for Defaulting Companies
The MCA has issued a clear warning: companies that do not use this scheme risk enforcement action after the July 15 deadline. This could include having their company name removed from the official register.