Companies Fresh Start Scheme 2020
Companies Fresh Start Scheme 2020
(Companies Fresh Start Scheme)
Introduction: - Central Government introduce a Scheme namely Companies Fresh Start Scheme, 2020 (CFSS-2020) condoning the delay in filing the specified documents with the Registrar, insofar as it relates to charging of additional fees, and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings vide General Circular No. 12/2020 dated 30/03/2020. CFSS-2020 also grant immunity for any prosecution or proceeding against the company for imposing any penalty on account of delay in filing documents. The Ministry has decided to provide an opportunity to all the companies registered in India to make a fresh start on a clean slate.
The salient features are as follows:-
The CFSS 2020 scheme remain to enforce from 1st April 2020 to 30th September 2020.
- It applies to all companies both public and private who failed to file all returns statements or Documents including Annual Return remain for any number of years as on date of filing.
- It provides a one-time opportunity to file all the pending documents including the annual filing of the company without charging higher additional fees on any delay.
- No late fee no penalty no prosecution only normal fees payable.
- Prosecution if any pending shall be disposed off after payment.
- The Scheme also provides an opportunity to the inactive company to convert into a dormant company under section 455 of companies act, 2013 by filing form MSC-1 with nominal fees & help the inactive companies to remain on ROCs register with minimum compliance requirement.
- After payment of normal fees and documents return statement is taken on record, an application shall be filed electronically (without any fees) for obtaining Immunity Certificate but it shall not be filed beyond six month from the date of expiry of scheme.
- Scheme grants immunity against filing of forms returns and documents but not against any punitive action being done by the company for which suitable can be taken by ROC.
- Scheme not apply to those companies against whom final notice under Section 248 has been given by ROC for striking off or who applied for striking off or applied for being declared dormant co; vanishing company or dormant company or companies under CIRP
Non Applicability of Companies Fresh Start Scheme, 2020 (CFSS-2020)
This scheme shall not apply in the following cases are:-
- Final notice for striking off the name of the company under section 248 of the companies act, 2013 already issued by the ROCs;
- The company made an application for striking off the name of the company from ROCs;
- Companies amalgamated under the scheme of compromise & arrangement;
- The company applied for dormant status under section 455 of the companies act, 2013 before the scheme introduction
- Vanishing Companies;
- Documents related to Increase in authorised share capital (Form SH-7);
- Charge related documents (CHG-1, CHG-4, CHG-8 & CHG-9);
Scheme for Inactive Companies
The defaulting inactive companies applied for the CFSS-2020 for filing due documents and simultaneously apply for the following actions are:-
- Application for dormant status under section 455 of the companies act, 2013 by filing MSC-1 to ROCs with nominal fees;
- Application for striking off the name of the company from ROCs.
- This is golden opportunity to file all pending Returns Annual Accounts, Statements including all pending Annual Returns pending for any number of years.