February 6, 2023

Companies Fresh Start Scheme -2020 (CFSS -2020)

Companies Fresh Start Scheme: The Companies Act, 2013 requires all Companies to make Annual Statutory compliance by filing the Annual Return and Financial Statements. Apart from this, various other statements, documents, returns etc. are required to be filed on the MCA21 electronic registry within prescribed time limit along with the prescribed filing fees.

However, most of the Companies have failed to file forms periodically with the MCA due to various reasons. As a number of representations were received from stakeholders requesting for grant of one-time opportunity, so as to enable them to complete their pending compliances by filing necessary documents , Ministry of Corporate Affairs has come up with Companies Fresh Start Scheme -2020 (CFSS-2020), to give an opportunity to the defaulting companies and to enable them to file the belated documents in the MCA-21 and to avoid prosecution including annual filings without being subject to a higher additional fees on account of any delay.

Accordingly, Numbro team has prepared FAQ’s for better understanding, and Private Limited Companies, LLP’s are advised to regularize their filings and best avail the opportunity. This document has been prepared by the secretarial department of Numbro and the authors can be reached at [email protected] for further queries.

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FAQ’s Regarding opting of Companies Fresh Start Scheme -2020

1.

Applicability

Defaulting Company which has made a default in filing of any of the documents, statements, returns, etc. including Annual statutory documents on the MCA-21.

2.

Duration of the Companies Fresh Start Scheme 2020

The Companies Fresh Start Scheme Effective from 01st April 2020 to 30th September 2020

3.

Forms covered under the Companies Fresh Start Scheme 
  • AOC-4 for filing Financial Statements
  • MGT-7 for filing Annual Return
  • Other forms like

                 – ADT-1 for appointment of Auditor

                 – MGT-14 for filing of agreements, resolutions etc.

                 – PAS-3 for allotment of shares

                 – INC-22 for change of situation of registered office.

                 – Any other form

4.

Non- Applicability
  • Companies against to which action for final notice for striking off name u/s 248 has already been initiated.
  • Where any application has already been filed by the company to striking of name of the company.(STK-2)
  • To companies which have amalgamated.
  •  To vanishing companies
  • To companies where any increase in authorized capital is involved (Form SH-7)
  • Charge related documents 

                     – CHG-1

                     – CHG-4

                     – CHG-8

                     – CHG-9

5.

Advantages of the Companies Fresh Start Scheme 2020
  • No need to pay any additional fees on the date filing during the Companies Fresh Start scheme 2020.
  • Immunity from the launch of prosecution or proceedings for imposing penalty shall be provided to the extent of penalty associated with delay in filing.
  • Company can withdraw of appeal against any prosecution launched.
  • Up-to-date Compliances by Company. 

6.

Disadvantages of not opting the Companies Fresh Start scheme
  • Companies which are not filing the documents since years have to bear huge additional fees.
  • Companies can be prosecuted for the default.

7.

Opportunity to Inactive Companies

The scheme gives an opportunity to Inactive companies to get their companies declared as “Dormant Company” under Sec 455 of the Act, by filing simple application at a normal fee.

8.

Deactivated DIN

DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web can avail the opportunity and shall file the concerned forms without any additional fees or penalty till 30.09.2020.

9.

ACTIVE non-compliant Status

Compliances Whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) eform are encouraged to avail the opportunity and shall file the concerned forms without any additional fees or penalty till 30.09.2020.
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Disclaimer :

The content provided is for better understanding and knowledge sharing only. Users are advised to refer relevant applicable laws & amendments and to take professional advice before acting on this document.

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