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

Author Bio

More Under Company Law

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031