Companies Fresh Start Scheme, 2020 (CFSS 2020), why introduced?
Issues that led to the birth of CFSS scheme, 2020:
Representations from stakeholders for the grant of one-time opportunity enabling them to complete their pending compliances without higher additional fees.
Detailed CFSS 2020
Defaulting Company shall file an application for issue of immunity certificate electronically under the Companies Fresh Start Scheme, 2020 without any fee payable on the CFSS-2020 Form.
1. Period of Applicability of Companies Fresh Start Scheme, 2020
1st April, 2020 till 30th September, 2020.
2. Applicability of Companies Fresh Start Scheme, 2020
For any Defaulting Company (A company which has made a default in filing of any document, statement, returns etc on the MCA)
3. Non-Applicability of Companies Fresh Start Scheme, 2020
Scheme shall not apply to companies:
4. Manner of Payment of fees and additional fees
Defaulting Company shall pay normal fees prescribed under the Companies (Registration Offices and Fee) Rules, 2014 without any additional fees.
5. Withdrawal of Appeal before filing an application for the Issue of Immunity Certificate
If an appeal is filed by the Defaulting Company against any notice issued or complaint filed or an order passed by a court/adjudicating authority; such appeal shall be withdrawn before filing an application for the Issue of Immunity Certificate.
6.Measures where an Appeal could not be filed against an order of Adjudicating Authority before the Regional Director u/s 454(6) of the Act as on the date of commencement of the scheme
7.Effect of Immunity
Once the Immunity is granted, the Designated Authority concerned shall withdraw prosecution(s) pending, if any, before the concerned Court(s) and the proceedings of adjudication of penalties u/s 454 of the Act.
8. Scheme for Inactive Company
Defaulting Inactive Companies (As defined in Explanation (i) to sub-section (1) of Section 455 (1) of the Act) while filing due docs under CFSS-2020 can simultaneously either:
1. File E-form MSC-1 (at a normal fee) for declaration as a Dormant Company u/s 455 of the Act, or
2. File E-form STK-2 (at a normal fee) for striking off the name of the Company.
Necessary action by designated authority against Defaulting Company after 30th September, 2020.
DISCLAIMER: This is a knowledge sharing initiative based upon the relevant provisions. In no event I shall be liable for any direct or indirect result of this Article.
(Author – Deepna Babal, Company Secretary from New Delhi can be contacted at [email protected]).