Companies Fresh Start Scheme 2020 is to provide opportunity to Companies to make good any filing related defaults, irrespective of duration of defaults. Company who wants to start fresh can follow Companies Fresh Start Scheme and get fully compliant.

Companies Fresh Start Scheme 2020 provide relief to law abiding companies in the wake of COVID19 outbreak. CFSS 2020 scheme will ease compliance burden during the unprecedented public health situation.

File pending forms between 01 April 2020 to 30 September 2020.

Then file Form CFSS-2020 between 01st October 2020 to 31st March 2021.

What is Companies Fresh Start Scheme 2020?

Companies Fresh Start Scheme 2020 is a one time waiver of additional fees for delayed filing of ROC returns by the company before 30th September 2020. Immunity is only for delayed filing of MCA roc forms and not against any substantive violation of Law. Scheme is valid from 01.04.2020 to 30.09.2020.

CFSS 2020 also provides immunity from penal proceedings for late submissions with additional time for filing appeals before Regional Directors. Defaulting company which has made a default in filing of any documents, statements, returns etc. can take benefit of this scheme.

Almost all ROC forms are eligible under this scheme except SH-7 Increase in Authorised capital and Charge related forms.

Click here to see – List of forms which are covered under Companies Fresh Start Scheme 2020

What immunity are provided in Companies Fresh Start Scheme 2020?

Immunity from the launch of prosecution or proceedings for imposing penalty shall be provided only pertaining to delay associated with the filings of belated documents.

Note –

  • Consequential proceedings are not covered, eg – involving interest of any shareholder or any other person qua the company or directors.
  • Immunity shall also not be applicable in the matter of any appeal pending before the court of law.
  • If the defaulting company has filed any appeal against any prosecution launched or the proceedings for imposing penalties initiated – then company shall withdraw the appeal before making application for issue of immunity certificate. Further, Proof of withdrawal needs to be filed along with the application.

Which form is to be filed for the immunity?

The application for seeking immunity for belated filing under Companies Fresh Start Scheme needs to be made electronically in Form CFSS-2020. No fees is to be paid for filing form CFSS-2020. This forms has to be filed between October 2020 to March 2021.

Details to be filled in CFSS-2020 forms are:

  • CIN of the company
  • Name, Address, Email id
  • SRN number of forms filed under the scheme
  • Date of filing and event
  • Normal fees charged

Designated authority shall issue Immunity certificate in respect of documents filed in the Form CFSS-2020. Designated authority then shall withdraw pending prosecutions and adjudication proceedings of penalties.

How much fees will be payable for filing of belated documents?

Defaulting company shall be required to pay only normal fees as per the rules. No additional fees shall be payable.

Companies Fresh Start Scheme 2020
Companies Fresh Start Scheme 2020

List of cases for which no immunity is given:

  • Consequential proceedings are not covered, eg – involving interest of any shareholder or any other person qua the company or directors.
  • Immunity shall also not be applicable in the matter of any appeal pending before the court of law. Management disputes of company pending before any court of law or tribunal.
  • Further, in case any court has ordered conviction or order imposing penalty has been passed by an adjudicating authority and no appeal has been filed for the same before 01st April 2020.

CFSS-2020 Scheme is not applicable to following cases:

  • Application has already been made for strike off or Dormant status by the company.
  • Companies against which action for final notice for striking off has already been initiated.
  • Amalgamated and Vanishing companies
  • Increase in Authorised capital or charge related documents are involved.

What are the opportunity for Inactive company?

Defaulting inactive company while filing due documents under CFSS 2020 can simultaneously apply for dormant status or for striking off.

This scheme gives an opportunity to inactive company to get their companies declared as “Dormant company” by filing application at normal fees, i.e without any late fees. This will help inactive company to remain on the register of companies with minimal compliance requirements. Form MSC-1 with normal fee.

Inactive company also have option to apply for striking off the name of the company STK-2.

Inactive company means a company which has not been carrying on any business or has not made any significant accounting transaction during the last two financial years or has not filed financial statements and annual returns during the last two financial years.

Significant accounting transaction means any transaction excluding —

(a) payment of fees by a company to the Registrar.
(b) payments made by it to fulfill the requirements of any law.
(c) allotment of shares.
(d) payments for maintenance of its office and records.

Company can check status, if they are active or inactive at mca.gov.in

If you have any query, click here to contact us…

Companies Fresh Start Scheme 2020

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