Companies Fresh Start Scheme 2020 provide opportunity for Companies and LLP to complete their pending compliances by filing necessary documents and forms without paying additional fees on account of any previous delay filing and prosecution immunity for the Directors & Promoters so this is golden opportunity to regularize any pending compliance.
Ministry of corporate affairs has grant one time opportunity under Companies Fresh Start Scheme 2020 (CFSS 2020) to enable companies and LLP to complete their pending compliances by filing necessary documents and forms in the MCA-21 registry including annual filings without being subject to a higher additional fees on account of any delay filing. CFSS 2000 provide condoning the fees of delaying filing the mentioned documents mentioned under scheme with Registrar, it relates to waiver of additional fees and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings.The main object of this scheme to give companies a one-time opportunity to make a fresh start by waiving off the additional fee as charged under section 403 of Companies Act, 2013 and granting of immunity from launching of prosecution and proceedings for imposing penalty on account of delay associated with certain filling.Some Important Form Can File Under This Scheme as Below
Any Company and LLP which has failed to file any mandatory form with ROC can avail this scheme.
No, the scheme can be availed by defaulting Companies only so the officer in default cannot avail the scheme.
The object of CFSS 2020 to give opportunity for companies and LLP to submit their pending forms and do all pending compliances by paying normal fees and no need to pay additional fees. So they can save big amount of penalty rather they need to pay full amount if scheme not introduced.
Explanation (i) to Section 455(1) of Companies Act 2013 defines the term “Inactive Company” as “Inactive Company” means a company which has
Defaulting Company means a Company defined under Companies Act, 2013 and which has made a default in filing of:
Defaulting Companies will be able to make their compliances good and there will be no prosecution/ penalty for the Companies which file their pending forms till 30th September 2020 provided such prosecution/ penalty is associated with the filing related default.No immunity is available for any default other than filing related default.
The forms which are eligible for filing under CFSS, 2020, and are divided into.
Annual Based Filing
Below Two Forms are not eligible under the CFSS 2020 Scheme.<
Procedure to avail the Scheme will be as follows
No, we do not need to file any application before filing such forms. However on completion of scheme, the company shall need to file e-form CFSS-2020 with no fee and obtain immunity certificate.
As per the CFSS 2020 scheme, filing of Active form is also allowed so company is required to file Active forms without any additional fees and then proceed for further filings.
Relaxation is provided under CFSS 2020 scheme to file DIR-3KYC/DIR-3KYC-Web within the period of the Scheme without filing of any additional fees. Once the DIN is activated, rest of the pending forms can be filed.
The Scheme is effective from 01/04/2020 and shall remain in force till 30/09/2020. Therefore, company will be able to file remaining forms, compliances till 30th September, 2020.
This scheme benefitted Defaulting companies but on the same time this scheme, also encouraged Inactive companies to start fresh by filing all their pending forms at Normal Fee by
This scheme shall not apply in the following cases are below
A company would be deemed to be a vanishing company if it is found to have:
The Scheme has been introduced by means of following Circulars of MCA:
No, it comes under the Exception list provided by Ministry. Thus, won’t be able to obtain benefits of the scheme.
In the cases, wherein the penalties are imposed under the Act and the company has not further appealed to higher authorities and such period of an appeal lies between 1st March 2020 to 31st May 2020, a period of additional 120 days be allowed for the filing of an appeal from the last date as may be specified under the order.
Further, such companies can also avail to withdraw the appeal, if any filed and avail benefits of the scheme.
A defaulting inactive company can apply for either of the following: