MCA eCODS Form 2018 - Condonation of Delay Scheme

The Condonation of Delay Scheme, 2018 announced by the Ministry of Corporate Affairs is active from 1st January 2018 to 31st March 2018. Directors who were recently disqualified for failure to file MCA annual return can file MCA eCODS form 2018 to regularise compliance and avoid permanent disqualification for a period of 5 years. Note: The deadline for filing eCODS form has been extended upto 30th April 2018. Know more.

Filing Form eCODS

Form eCODS can be filed by directors who were disqualified. Currently, the DIN of Directors who were disqualified has been de-activated. Hence, the disqualified Directors have not been able to file the overdue annual return or any other forms with the MCA. From 1st January 2018 to 31st March 2018, the DIN of all disqualified Directors will be temporarily re-activated. The disqualified Directors are to use the condonation of delay scheme and this window to regularise compliance.

Step 1: Prepare Financial Statements & Complete Statutory Audit

Before filing eCODS form, the Directors of the company must first prepare the necessary overdue financial statements and get the same audited for all the years where returns was not filed. Once, the financial statements are audited and the Annual General Meetings are conducted, the MCA annual return along with the necessary attachments must be filed with the MCA along with payment of any penalty for late filing of MCA annual return.

Step 2: Filing Form eCODS

Once all the overdue annual returns have been filed, form eCODS must be filed by the Director before 31st March 2018. Important Note: Form eCODS will not be available for download on the MCA Portal until 20th February 2018. However, the Directors will be allowed to file the overdue MCA annual return from 1st January 2018. Hence, all overdue compliance can be completed before the release of eCODS form by the MCA. Once form is made available, the Directors would have to file eCODS form with the details of all overdue MCA annual returns filed along with a payment of Rs.30,000. On filing eCODS form, the Director Disqualification would be removed and the DIN of the Directors would remain active even after 31st March 2018. Sample eCODS Form is reproduced below for reference:

Failure to File eCODS Form

In case a company regularised all compliance before 31st March 2018 but failed to file eCODS form, then the Directors DIN would be deactivated after 31st March 2018. Hence, all disqualified directors availing the Condonation of Delay Scheme must file eCODS form along with the Rs.30,000 penalty to regularise compliance. Note: In case you need assistance with filing form eCODS under the Condonation of Delay Scheme, get in touch with an IndiaFilings Advisor at sales@indiafilings.com or help@indiafilings.com.

Failure to Avail Condonation of Delay Scheme

Any disqualified Director who has failed to avail the relief provided through the condonation of delay scheme will have to face disqualification for a period of 5 years. During the disqualification period, the Director will not be able to start a new company and face other consequences for defaulting on compliance as provided under Companies Act, 2013.