Companies Fresh Start Scheme, 2020

August 7, 2020

The Ministry of Corporate Affairs (MCA) has come up with the ‘Companies Fresh Start Scheme 2020’ to enable companies make good of any filing-related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity. It has issued a General Circular No. 12/20 dated 30.03.2020 explaining the various aspects of the scheme.

Objective:

  • Opportunity given to a defaulting company to file forms pending from the date of incorporation till 30.09.2020 and become a COMPLIANT company
  • Waiver of additional fees or penalty for non-filing of forms
  • Immunity from launch of any prosecutions or proceedings for imposing penalty

Applicability:

ALL registered companies including Nidhis and Foreign companies except

  • Strike off companies
  • Companies under the process of strike off
  • Companies who have made an application for striking off
  • Dormant companies
  • Amalgamated companies
  • Vanishing companies

 

Forms which can be filed:
ALL e-forms pending to be filed with the ROC / MCA except:

  • Charge forms like CHG – 1, CHG – 4, CHG – 8, CHG – 9
  • Increase in share capital – Form SH – 7
Note that the forms need to be filed within the period 01.04.2020 to 30.09.2020.

Application for issue of Immunity – Form CFSS-2020:

  • Form to be filed within 6 months after the closure of the scheme
  • Details to be filed:
    • SRN of the belated forms filed under the scheme
    • Date of filing of the belated forms
    • Normal fees paid for filing the belated form
    • Attachments-
      • Proof of withdrawal of any appeal filed
      • Details of prosecution pending in relation to the belated documents which is to be withdrawn by the ROC
  • No filing fee to be paid for this form
  • ROC to issue an IMMUNITY CERTIFICATE and no proceeding or prosecution can be initiated
  • ROC will act against companies not availing the benefit of the scheme and not filing forms or documents and may suffer huge penalties and late filing fees

Conclusion: The Government has given a one-time opportunity to all the defaulting and inactive companies to REVIVE AND START AFRESH thus becoming a COMPLIANT company.