COMPANIES FRESH START SCHEME, 2020 (CFSS, 2020)
The Ministry of Corporate Affairs videGeneral Circular No. 12/2020 dated 30/03/2020 has provided an opportunity to defaulting companies to make a fresh start on a clean slateby filing belated documents, statements, returns and forms including ANNUAL FILING FORMS (like AOC-4, MGT-7), DIR-3 KYC, INC-22A (ACTIVE) in the MCA-21 registry irrespective of its due date without any additional fees.
THE DETAILS OF THE SCHEME ARE AS UNDER:
- • Thecompanies which have failed to file Annual Returns and Financial Statement and various other documents, returns and forms filing fees of which are governed U/S 403 of the Actcan now be filed under this scheme at a nominal fees as prescribed under The Companies (Registration and Offices) Rules, 2014.
Note: FORM MGT-14 is not covered U/S 403 of the Act and hence this Scheme is not applicable.
- Only normal fees will be payable for filing the documents in the MCA 21 Registry.
- Inactive companies can get their companies declared as dormantby filing FORM MSC-1.
- The scheme shall remain enforce from 01.04.2020 to 30.09.2020.
- Immunity from launch of prosecution or proceedings for imposing penalty shall be provided only if the delay is related to filings of belated documents butnot in case of management disputes of the company pending before any court of law or tribunal.
For example- Immunity will be granted for delay in filing of Return of Allotment (FORM PAS-3) but not if the money raised through private placement is utilized prior to filing of Return of Allotment (FORM PAS-3)
- If any prosecution or proceedings for imposing penalties has already been initiated by a court or by an adjudicating authority under the Act than the defaulting company or applicant needs to withdraw his applicationof appeal before applying for issue of immunity certificate furnish proof of such withdrawal along with the application.
- As on the date of Commencement of this scheme if penalties were imposed by an adjudicating officer under the Actdue to delay in filing of any document, statement or return and no appeal has been made by the concerned company or its officer before the Regional Director U/S 454 (6) of the Companies Act, 2013 following would apply:
- No immunity will be provided under this scheme
- If the last date of filing an appeal falls between 1st March 2020 to 31st May 2020 than a period of 120 additional days shall be allowed to file an appeal before the concerned Regional Directors
- No prosecution U/S 454 (8) shall be initiated against such companies or their officers for non-compliance of the adjudicating authority order.
- The company or their officer need to file FORM CFSS-2020 to obtain immunity certificate under this scheme after the document are taken on record or approved by designated authority or ROC but not later than 6 month from the closure of the scheme.
NON-APPLICABILITY OF THE SCHEME
COMPANIES FRESH START SCHEME, 2020 (CFSS, 2020) does not apply –
- If final notice for STRIKING OFF the name of the Company U/S 248 of the Act has already been initiated
- If application for STRIKING OFF (FORM STK-2)the name of the Company has been filed
- If the companies have been amalgamated under a scheme of arrangement or compromise
- If application for obtaining DORMAT STATUS U/S 455 has been filed
- To Vanishing Companies
- For increase in Authorized Share Capital (FORM SH-7)of the Company
- For Charge Related Documents FORM CHG-1 (Charge Creation and Modification), CHG-4 (Charge Satisfaction), CHG-8 (Application to Central Government for extension of time for creation, modification, satisfaction or rectification) and CHG-9 (Charge Creation, Modification or Rectification for Debentures)
SCHEME FOR INACTIVE COMPANIES
The defaulting inactive companies while filing due documents under CFSS can simultaneously apply for-
- a. Getting themselves declared as Dormant Company U/S 455 of the Act by filing FORM MSC-1
- b. Striking off the name of the Company U/S 248 of the Act by filing FORM STK-2.
Please feel free to contact us on 9836388555 or [email protected] more details and queries. ENCLOSURE- MCA General Circular No. 12/2020 dated 30/03/2020