COMPANIES FRESH START SCHEME-2020 (CFSS-2020)

Introduction
  • On 30th March 2020 Ministry of Corporate Affairs (MCA) had issued a Circular no. 12/2020 about “Companies fresh start scheme, 2020” (CFSS-2020);
  • It is one-time waiver of additional filing fees for delayed filings by the Companies with the registrar of companies;
  • This scheme is notified especially for those with long standing defaults, and significantly reduce the related financial burden on them, thereby giving them an opportunity to make a “fresh start”, However, the immunity is only against delayed filings in MCA 21 and not against any substantive violation of law.
Period for Filing the Forms
  • From 1st April, 2020 to 30th September, 2020.
Applicability

 
  • Defaulting Companies for filing belated documents due for filing on any given date i.e. A Defaulting Company who defaults in filing of any documents, returns & statements with MCA.
Scheme shall not Applicable in Certain Cases

 
  • Companies against which final notice for Striking off the name has already been initiated;
  • Companies which have filed application for Striking off the name by its self;
  • Companies which have been amalgamated;
  • Companies have already been filed for obtaining Dormant Status
  • Vanishing Companies;
  • Where any Increase in authorised capital is involved (Form SH-7) and Charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9).
Manner of Payment
  • Every Defaulting Companies shall be required to pay normal fees as prescribed on the date of filing of each belated documents and no additional fees will be charged.
Application for issue of Immunity Certificate
  • After filing the all  belated form the Company will file electronically Form CFSS-2020  without any fees for seeking immunity in respect of belated documents filed within six months from the closure of this scheme i.e. till 31st March, 2020;
  • Based on the declaration made in the Form CFSS-2020 an Immunity Certificate in respect of documents filed under this scheme shall be issued by the designated authority.
Immunity of This Scheme shall not Applicable
  • Any matters pending before court of law;
  • In case of management disputes of company pending before any court of law or tribunal;
  • Court has ordered conviction in any matters and no appeal preferred before this scheme;
  • Any order imposing penalty has been imposed and no appeal preferred before this scheme has came into force.
Effect of Immunity
  • After granting the immunity, the Designated Authority concerned shall withdraw the prosecution(s) pending, if any, before the concerned courts(s) and the proceedings of adjudication of penalties shall be deemed to be completed without any further action.
For Inactive Companies
  • Apply to get themselves declared as Dormant Company under Section 455 of the Companies Act, 2013 by way of filing of e-Form MSC – 1 at a normal fee; or
  • Apply for striking off the name of the company by filing e-form STK-2 by paying the fee payable.
Cases where Orders has been passed for delay if filing and appeal could not be filed as last date of filing appeal falls between 1 March, 2020 to 31 May 2020
  • Additional 120 days will be allowed to file appeal;
  • No Prosecution shall be initiated by ROC during the additional period allowed.

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