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Key Compliances during COVID-19 that Entrepreneurs Need to Know

Key Compliances during COVID-19 that Entrepreneurs Need to Know

The world as we know it has changed. The situation due to COVID-19 has become so unprecedented that everyone is trying to rush towards and save their finances.

MSMEs are especially at risk. That said, they don’t need to be. If these times have taught us anything, it’s that that there is a way to work remotely if you know the world digitally. This blog is going to detail the key compliance during COVID 19 that entrepreneurs need to know.

CAR FORM

Company Affirmation of Readiness towards COVID-19 form or the CAR form is to be filled by all the LLPs and companies registered under the Companies Act. Work from home is no longer optional, the companies need to provide such facilities and the CAR form will allow you to do that. It’s a form used by the government to strategize a way to combat the spread of COVID-19.

Relaxation of PF Remittance and ESIC

The ESI contribution for the month of February and March of 2020 can now be filled and paid will 15th may 2020. Furthermore, to ensure that companies aren’t burdened with Provident fund remittance, both the employees and the employers have good news, government is now going to take the burden for EPF for 3 months.

Fees that are waived

All the additional or late fees associated with late income tax return filing or any other document has now been waived. Entrepreneurs won’t have to worry about delayed compliance anymore, for they won’t be penalized for them. It’s a move to ensure that the entrepreneurs are able to focus on their work during the pandemic.

Work from Home

Immediately from 31st March 2020, the government has advised all the companies to find a way for their employees to work from home.  Through the feasible use of technology, they have to ensure that the employees retain their employment by working from home at all times. Furthermore, all the necessary meetings are to be conducted through homes only.

Auditor’s report delay

The government has deferred the applicability of auditor’s report for companies. It’s an important move to ensure that the new pointers are checked in the auditor’s report.

Commencement of business

The form 20-a now needn’t be filed within 180 days (6 months) of company registration. Now, new entrepreneurs have up to 1 year after company registration to fill their declaration of commencement of business.

Not to invoke Industrial dispute act to lay off employees

Entrepreneurs, whether they are young or old aren’t allowed to terminate or lay-off employees during their time. These entrepreneurs are to pay these employees as if they are working their regular jobs. Furthermore, in order to help companies financially, the MCA has granted several relaxations to ensure that the entrepreneurs are burdened by the demands of righteousness.

Conclusion

These are the compliances that entrepreneurs need to ensure to follow during Covid-19. Yes, they are difficult to follow and yes, they can undermine your business. But know this, if you survive these times, you will come out stronger.

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