The scale of the impact of COVID-19 on the Indian economy has been unprecedented. Understandably so, of late, there have been several regulatory changes. Here is a quick snapshot of what is relevant to your business.
The MCA has introduced an online form where Companies & LLPs declare their readiness to meet the threats posed by COVID-19. The due date for filing is 30 March. There is no government fees payable to file the form. OTP verification shall be required.
The Government of India has declared COVID a 'notified disaster'. Funds spent on preventive healthcare and sanitation and disaster management would be within the definition of a company’s CSR obligations. Funds spent to address the challenges posed by COVID would thus fall under CSR. Qualifiying companies have to spend 2% of their average profits (3 years) on CSR activities.