Form CAR- (Companies Affirmation of readiness towards COVID 19)

As we all are aware of the current situation, The government has strictly asked everyone to stay indoors. And not to leave their home until further notified. Considering the current situation in the country, The Ministry of corporate affairs has issued one notification, asking the Companies and LLP to file a Form namely Form CAR (Companies Affirmation of readiness towards COVID 19). This is a WEB-based form to ensure that all the companies and LLPs have to comply with the “Work from home” policy.

MCA notification on Form CAR (Companies Affirmation of Readiness towards COVID 19)

MCA notification says. “Stakeholders may please take note that there are no fees applicable for Form CAR (Companies Affirmation of Readiness towards COVID 19). Stakeholders please may also note that the form has been deployed as a purely confidence-building measure to assess the readiness of the companies to deal with COVID 19 threats in India. As such no enforcement-related action is applicable. Stakeholders may at their convenience file this form. It is purely voluntary as a part of our contribution towards joining the movement to fight against the spread of the novel  CORONAvirus. Since the portal may experience a heavy load, It would indicate a ‘Busy’ alert whenever peak traffic is reached.

Key Features of the Form CAR (Companies Affirmation of Readiness towards COVID 19)

• It is a simple web form deployed on 23.03.2020 with minimum fields and can be filed from anywhere
• No Payment of Fee
• No DSC
• Available as a ‘Post-login’ service for both ‘Registered’ as well ‘Business User
• 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
• Only OTP verification
• No SRN is generated
• System based acknowledgment shall be sent to:

1. 1. Email ID of the respective Company/Foreign Company/ LLP or Foreign LLP
   2. Email ID of the Authorized Signatory who is providing the affirmation
   3. Email ID of the FO user who is submitting the affirmation

FAQs related to Form CAR (Companies Affirmation of Readiness towards COVID 19):

1. Who is required to file the form CAR?

• All the companies and LLPs are required to file Form CAR.

2. Are there any fees for filing the Form CAR?

• No, the Form CAR is free of cost. No fees to be levied on filing the form.

3. Whether the Circular is introduced under any provisions of statutory Power?

• No, The Circular is not abided by any statutory power. It is simply a precautionary measure for sensitization of the corporate sector, towards fulfilling an urgent social and human obligation.

4. What is the object of having such a plan?

• A. The object of having such a plan is to ensure social distancing as advised by WHO and other public health authorities in the recent outbreak of COVID-19 which is required for preventing the rapid spread and transmission of the disease at the community level.

5. My company does not have any permanent employees. Am I still required to follow this policy?

• If there are no permanent employees, it is all peace as far as your company is concerned. Go and file the form and say you have taken the necessary steps.

6. Do I require to attach a DSC while filing the Form?

• No, you would not be required to attach DSC while filing the Form.

7. Whether the companies required to file the “Work from Home” policy in writing?

• The Advisory suggests to have a plan to implement the work from home policy for the employees. In our view, the same is not required to be a written or formal policy. The word “policy” here should mean the steps to be taken by the organization to provide the facility of working from home to its employees and the manner/ procedure to be followed to ensure the same. If there is a policy, typically, the policy is applied to all employees covered by it without discrimination. Further, the process and manner to be followed shall be different from organization to organization. Accordingly, in case of companies, the decision may be taken at management level, while in case of others, by the head of the organization.