As we all are aware that Ministry of Corporate Affairs (MCA) in strict action mode since last 2-3 years and have strike off large no of Companies on its own motion and disqualified their directors for being a director for five years, just because of non-filing of due Statutory Annual Returns for continuously last Three financial years.
Consequently, the large no of Companies have sound business track as well as law compliant background are also stuck just because of same directorship of any one disqualified director in those companies and due to which their compliances are also on stake.
As a result of this, the Cost of Compliances of those Company is much costlier than normal company just because of heavy additional fees as applicable under Section 403 of the Companies Act 2013
Therefore the need has been arise to come up with the detailed scheme by giving an additional chance to make their default good, accordingly, the various stakeholder has requested to the Ministry for grant of one time opportunity to file the all requisite belated documents/returns etc.
In order to consider the request and representation of various stake holder, the Government has come up with a new scheme called as COMPANIES FRESH START SCHEME, 2020 (CFSS-2020) for initial period of 6 months i.e. 01.04.2020 till 30.09.2020 vide its General Circular No.12/2020 on the 30th day of March, 2020.(MCA)
The Ministry had already introduced a such kind scheme with different names like Conpany law settlement scheme 2014 and Cods scheme 2014
The detailed procedure of COMPANIES FRESH START SCHEME, 2020 (CFSS-2020) is as below mentioned:-
Applicability
This Scheme shall be applicable on any “Defaulting Company” and shall be commenced from 01st of April, 2020 till the 30th September, 2020 and permitted to file all belated documents which were due for filing without any Additional Fees except two documents and out of which, some permitted documents are as follows:-
Annual based Forms:-
Annual Return -MGT-7
Financial Statements – AOC-4
- Event based Forms:
-
- INC-22A (Active Company Tagging Identities and Verification (ACTIVE))
- INC-20A (Declaration for commencement of business)
- PAS-3 (return of Allotment)
- ADT-1 (Appointment of Auditor)
- MGT-14 (Filing of Resolutions and agreements to the Registrar)
- DIR-12 (Particulars of appointment of Directors and the key managerial personnel and the changes among them)
Two Exceptions which is out of purview of this Scheme:
- Increase in Authorised Share Capital (SH-7)
- Charger related documents (CHG-1, CHG-4, CHG-8 and CHG-9)
Benefits/Effect of CFSS Scheme
Condonation of all Additional fee for filing of Belated documents;
Granting of Immunity from the Prosecution;
Granting of Immunity from the Proceedings for imposing penalty;
ROC shall withdrawal the all proceedings of adjudication of penalties u/s 454
Non Applicability of CFSS Scheme
- Companies against which action for final notice for striking off the name u/s 248 of the act have already been initiated by the Designated Authority.
- Companies which have already filed STK-2 for strike off of Company with ROC.
- Companies which have amalgamated.
- Companies which has already filed application for obtaining Dormant Status.
- Company having any appeal which is pending before the Court of law.
- Company having management disputes and pending before any Court of law or Tribunal.
- Companies which are convicted by any Court in any matter and no appeal has been preferred against such orders of the Court before this Scheme has come into force
- Companies upon which an order passed for imposing penalty by an adjudicating authority under the Act, and no appeal has been preferred against such orders of the Adjudicating Authority before this Scheme has come into force.
Procedure
1. The defaulting company shall file their overdue documents/returns/other statements as well as statutory Annual Filing documents such as Financial Statements and Annual Returns in respective prescribed e-Forms by paying the normal statutory filing fee without any additional fee as payable as per section 403 of the Act read with Companies registration and office rules 2014 within due immunity period.
2. The Defaulting Companies shall file the Form CFSB-2020 after making all default good as well as all filed document are taken on file or on record or approved by the Designated authority as the case may and after closure of the Scheme but not after the expiry of six months from the date of closure of the Scheme. The is no filing fees of Form CFSS-2020.
3. The Form CFSS-2020 is entirely self-declaration-based form. After submission of Form CFSS-2020 and on the basis of self-declaration made by Director, the ROC will issue Immunity Certificate.
List of Forms eligible for Companies Fresh start Scheme 2020:-
MCA has introduced a scheme namely Companies Fresh Start Scheme, 2020 whereby all the defaulting companies will be able to file the forms which the companies
List of forms eligible for late filings without any additional fees or penalties under CFSS 2020:-
| Form No. | Description of Forms as per Companies Act 1956/2013 |
| 23C | Appointment of Cost Auditors |
| MR-2 | Form of Application to the Central Government for approval of appointment or reappointment and remuneration or increase in remuneration or waiver for excess or over payment to managing director or whole time director or manager and commission or remuneration to directors |
| ADT-2 | Application for removal of auditor(s) from his/their office before expiry of term |
| NDH-2 | Application for extension of time |
| DIR-3C | Intimation of Director Identification Number by the company to the registrar |
| INC-12 | Application for grant of License under section 8 |
| MSC-1 | Application to ROC for obtaining the status of dormant company |
| DIR-12 | Particulars of appointment of directors and the key managerial personnel and the changes among them |
| INC-4 | Intimation for Change in Member/Nominee |
| INC-6 | One Person Company – Application for Conversion |
| INC-22 | Notice of Situation or Change of situation of Registered Office of the Company |
| INC-27 | Conversion of public company into private company or private company into public Company |
| 20B | Annual Return |
| 21A | Annual Return for company having no share capital |
| 23B | Notice by Auditor |
| 23D | Information by cost auditor to Central Government |
| 23AC | Filing balance sheet and other documents with the Registrar |
| 23AC-
XBRL |
Form for filing XBRL document in respect of balance sheet and other documents with the Registrar. |
| Form 66 | Form for submission of Compliance Certificate |
| AOC-4 | Form for filing financial statement and other documents with the Registrar |
| AOC-4
CFS |
Form for filing consolidated financial statements and other documents with the Registrar |
| AOC-
4(XBRL) |
Form for filing XBRL document in respect of financial statement and other documents with the Registrar |
| ADT-1 | Information to the Registrar by company for appointment of auditor |
| ADT-3 | Notice of Resignation by the Auditor |
| BEN-2 | Return to the Registrar in respect of declaration under section 90 |
| CRA-2 | Form of Intimation of appointment of cost auditor by the company to Central Government |
| CRA-4 | Form for filing Cost Audit Report with the Central Government |
| DPT-3 | Return of deposits |
| DPT-4 | Statement regarding deposits existing on the commencement of the Act |
| GNL-2 | Form for submission of documents with the Registrar |
| INC-5 | One Person Company- Intimation of exceeding threshold |
| IEPF-1 | Statement of amounts credited to the Investor Education and Protection Fund |
| IEPF-2 | Statement of unclaimed or unpaid amounts |
| IEPF-3 | Statement of shares and unclaimed or unpaid dividend not transferred to the Investor Education and Protection Fund |
| IEPF-4 | Statement of shares transferred to the Investor Education and Protection Fund |
| IEPF-6 | Statement of unclaimed or unpaid amounts to be transferred to the Investor Education and
Protection Fund |
| IEPF-7 | Statement of amounts credited to IEPF on account of shares transferred to the fund |
| IEPF-5 e-
verification on report |
Application to the authority for claiming unpaid amounts and shares out of Investor Education and Protection Fund (IEPF) – E-verification report |
| I-XBRL | Form for filing XBRL document in respect of cost audit report and other documents with
the Central Government |
| MGT-7 | Annual Return |
| MR-1 | Return of appointment of key managerial personnel |
| MSC-3 | Return of dormant companies |
| NDH-1 | Return of Statutory Compliances |
| NDH-3 | Return of Nidhi Company for the half year ended |
| NDH-4 | Application for declaration as Nidhi Company and for updation of status by Nidhis |
| PAS-3 | Return of allotment |
| SH-11 | Return in respect of buy-back of securities |
| A-XBRL | Form for filing XBRL document in respect of compliance report and other documents with
the Central Government |
| DIR-3 KYC/Web form | Application for KYC of Directors |
| FC-1 | Information to be filled by Foreign company |
| FC-2 | Return of alteration in the documents filed for registration by foreign company |
| FC-3 | Annual accounts along with the list of all principal places of business in India established by foreign company |
| FC-4 | Annual Return of a Foreign Company |
| INC-22A | Active Company Tagging Identities and Verification (ACTIVE) |
| INC-20A | Declaration for commencement of business |
| AOC-5 | Notice of address at which books of account are maintained |
| DIR-11 | Notice of resignation of a director to the Registrar |
| GNL-3 | Particulars of person(s) or key managerial personnel charged or specified for the purpose of sub-clause (iii) or (iv) of clause 60 of section 2 |
| INC-20 | Intimation to Registrar of revocation/surrender of license issued under section 8 |
| INC-28 | Notice of order of the Court or Tribunal or any other competent authority |
| MGT-6 | Return to the Registrar in respect of declaration under section 89 received by the company |
| MGT-10 | Changes in shareholding position of promoters and top ten shareholders |
| MGT-14 | Filing of Resolutions and agreements to the Registrar under section 117 |
| MGT-15 | Form for filing Report on Annual General Meeting |
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