What is this Company Fresh Start Scheme – 2020 (CFSS-2020)
The Ministry of Corporate Affairs has provided an opportunity to corporates to make a “Fresh Start” in their life by issuing a General Circular No. 12/2020 dated 30th March 2020. MCA introduced a scheme called ‘COMPANIES FRESH START SCHEME 2020 (CFSS-2020)’.
The salient features of this scheme have been discussed here:
Benefits to Company:
- Full Waiver for Payment of Additional Fees/ Penalty
- Immunity from launch of prosecution
- Immunity from proceedings for imposing penalty
Applicable for:
- Companies which has not filed Annual Return and Financial Statements to ROC /MCA i.e. Form AOC-4, AOC-4 XBRL, AOC-4 CFS, Form MGT-7
- Companies which has not filed any E Forms that are required to be filed to ROC /MCA and not filed i.e. Form MGT-14, ADT-1, Form DPT-3 , Form DIR-12, Form 20A, INC 22 except SH-7 & Charge related forms.
PERIOD:
- From 01-04-2020 to 30-09-2020 (Pending documents can be filed in this period)
Fee Payable for Filing of Documents:
- Normal Filing Fee without any penalty
What is E-Form CFSS-2020: (Application of issue of immunity certificate)
- E Form to be filed after filling all belated documents mentioning SRN of the e-forms
- Required to be Filed with MCA
- Within 6 Months after the End of the Scheme
- No Filing Fee for E Form CFSS-2020
- Certificate of immunity will be issued by ROC
- After certificate of immunity, no prosecution or proceedings can be initiated
- Company will withdraw all appeals against any prosecution and ROC will withdraw all the proceedings
Non Applicability of CFSS-2020:
- Company under Strike off
- Amalgamated Companies
- Applications filed for obtaining Status of Dormant Companies
- Vanishing Companies
- Form SH-7 for Increase in Authorized Share Capital
- Form CHG-1 , CHG-4, CHG-8, CHG-9 related to Charge
Inactive Companies:
While making filing of the due statutory documents under CFSS-2020, can file simultaneously :
- Application for Obtaining Status of Dormant Company OR
- STK-2 for Strike of Name of Company
Action by ROc/MCA:
- If Pending Returns/ Documents are not filed
- MCA/ROC will take action as per provisions of Companies Act, 2013 which provides for very high penalties