Companies Fresh Start Scheme, 2020 (CFSS-2020)
MCA have introduced a Scheme Namely Companies Fresh Start Scheme, 2020 (CFSS-2020) condoning the delay in filing the documents to the Registrar.
What is Companies Fresh Start Scheme, 2020 (CFSS-2020)?
Any defaulting company can file the belated documents which were due earlier without additional fees. MCA have waived off the additional fees and will grant immunity from prosecution or proceedings for imposing penalty on account of delayed filings.
Only normal fees will be charged for completing the pendency of compliances to the Ministry.
Validity Period of the Scheme
Scheme shall be valid for 6 Months starting from 01.04.2020 till 30.09.2020.
Special Cases for Appeal to defaulting companies
1) Case A
Where any defaulting company, with respect to statutory filings have filed any appeal against any notice issued or complaint filed or order of the court or Adjudicating Authority for violation of provisions, the Applicant shall withdraw the appeal first and then file the CFSS, 2020 form along with the proof of such withdrawal along with the application.
2) Case B
Cases where order of adjudicating authority was passed, penalties was imposed but appeal could not be filed, in this case where:-
1. Last Date of filing the appeal falls between 1st March, 2020 to 31st May, 2020 (both inclusive), a period of additional 120 days shall be allowed for filing the appeal before the Regional Director (RD).
2. During such additional period, prosecution shall not be initiated against company and its officers.
Immunity from Prosecution
Immunity from prosecution or proceedings for imposing penalty shall be provided only to the extent of any delay associated with filings.
Whereas any other consequential proceedings shall not be covered in this scheme.
Immunity shall not applicable in the matter of appeal pending before the court of law and in case of management disputes of the company pending before any court or Tribunal.
After the declaration filed in form CFSS, 2020 an immunity certificate will be issued under this scheme.
Non- Applicability of Scheme
1. Where final notice for striking of name of the companies have been initiated by the authority.
2. Where application have been filed for striking of the name of the company.
3. Companies which have been amalgamated under a scheme of compromise or arrangement.
4. Where application have already been filed of obtaining Dormant Status.
5. Vanishing Companies
6. Where any increase in authorised capital is involved and charge related documents are involved.
Scheme for Inactive Companies
Also, Scheme gives an opportunity to inactive companies to get their companies declared as “Dormant Companies” and remain active on the Register of the Companies with minimum compliance.
The defaulting inactive companies apply to get themselves declared as Dormant Companies by filing e-form MSC-1 or apply for striking of name of the company by filing e-form STK-1.
For any Requirements or Queries contact
CS Arpit Garg
8447773833
