Company Affirmation of Readiness towards COVID-19

The Ministry of Corporate Affairs ( MCA ) has developed very precise and simple web form named Company Affirmation of Readiness towards COVID-19, popularly known as the CAR, for Company from of organizations/LLPs to confirm their readiness to contribute to the elimination of COVID-19 threat. Since the wake of the Novel Coronavirus (COVID-19) affecting over 172 countries including India, the WHO had declared it a Pandemic. Apart from human suffering, it is also causing major economic disruptions which was much beyond the expected levels. In order to curtail the spreading of the virus, the corporate sector of the nation is required to play a key role in implementing the strategic policy decision such as social distancing, which is most crucial in reducing the rate and extent of disease transmission at the community level between cohabitants.

Taking cognizance of the gravity of threat caused to public health, the Government through the Ministry of Corporate Affairs has relaxed the rules with respect of Board and dispensed with the necessity of holding physical meetings to decide on matters relating to approval of financial statements, board report, corporate restructuring etc., up to 30th June, 2020. The Ministry is also examining any for any other possible relaxation that could be brought under the Companies Act, 2013 on account of COVID-19. As a vital part of disaster management to meet this emerging and severe health exigency, all corporate/LLPs are strongly intimated to put in place an immediate action plan to carry out Work from Home, in the Head offices and field offices to at most extent possible, which includes conduct of meeting through video conferencing or through such other electronic/telephonic/computerized means. The ministry has further instructed that even with the minimum staff on duty, staggered timings may be followed so as to minimize physical interaction between the workers. Apart from that, the preventive measures including the Do’s and Don’t’s advised by the public health authorities are to be followed without any latches. The Webform named CAR is introduced today, 23rd March 2020. All companies/LLPs are requested to comply with the web form named CAR on the 23rd of March instant while following all possible preventive measures to contain the disease and its contagious effect.

In order to deal with this public health situation, the Corporate sector would be require to play a key role in implementing the strategic policy decision of social distancing, which is the most crucial for reducing the rate and extent of the disease transmission at community level.

###Key features of CAR It is a precise web form deployed on 23.03.2020 with minimum fields and can be filed online.

• There shall be no fee demanded for submission of the Web-form

• No DSC is required

• The form is available as a ‘Post-login’ service for both ‘Registered’ as well ‘Business User’

• The procedure is Applicable for all Indian companies/ Foreign companies/ LLPs/ Foreign LLPs

• Any one of the current Authorized Signatories of the Company/LLP can submit the form online on behalf of the company

• Cumbersome procedures have been avoided, the only verification that is does, is done in the form of OTP

• No SRN will be generated upon submission.

• A System based acknowledgment will be sent to:

  • • Email ID of the respective Company/Foreign Company/ LLP or Foreign LLP

  • • Email ID of the Authorized Signatory who is providing the affirmation

  • • Email ID of the FO user who is submitting the affirmation

###Procedure to be Followed

• Step 1: Enter valid CIN/ FCRN/ LLPIN/ FLLPIN allotted to the company/LLP

• Step 2: Click on Pre-fill button

• Step 3: System will Pre-fill the name of the company (either Indian or foreign) or LLP or Foreign LLP respectively.

• Step 4: Acknowledge whether Company/LLP is in compliance of COVID-19 Guidelines including work from home policy.

• Step 5: The Authorized Signatory of the Company/LLP who is giving the affirmation should possess a valid DIN/ PAN or Membership Number.

Note: Ensure that such authorized signatory is at the relevant time associated with the company/LLP.

• Step 6: Fill valid DIN in case of Director/ PAN in case of other Key Managerial Personnel/ Membership Number in case of Company Secretary who is in full time employment.

• Step 7: Click on Pre-fill

• Step 8: In case DIN of a Director is entered, mobile number available in database shall be Pre-filled.

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