In order to facilitate the Companies registered in India to make a fresh start on a clean state the Ministry has decided to take alleviative measures for the benefit of all companies through Companies Fresh Start Scheme, 2020 (CFSS 2020).

CFSS 2020 is launched for defaulting companies to make their defaults good. Defaulting Company means a Company defined under the Companies Act, 2013 and which has made a default in filing of any of the documents, statements, returns etc. including annual statutory documents on the MCA-21 Portal.

In order to give a one time opportunity to the defaulting companies which are not complied with annual statutory compliances by not filing the Annual Return (E-form MGT-7) and Financial Statements (AOC-4) and apart from this, various other statements, documents, returns etc. which are required to be filed with MCA21 registry within prescribed time limits to enable them to file the belated documents with MCA21 registry without additional fees. This also provides granting of immunity from launching of prosecutions or proceedings for imposing penalty on account of delay associated with certain filings.

CFSS 2020 shall come into force on the April 01, 2020 and shall remain in force till September 30, 2020.

Every Defaulting Company shall be required to pay normal fees as on the date of filing of each belated document and no additional fees shall be payable.

Applicability of Companies Fresh Start Scheme, 2020

Any defaulting Company is permitted to file belated documents which were due for filing on any given date in accordance with the provision of this scheme.

Scheme not to apply in certain cases: –

1. To Companies against which action for final notice for striking off the name u/s 248 of the Act has already been initiated by the designated authority

2. Where any application has already been filed by the Companies for action of striking off the name of the Company from the register of Companies i.e. STK-2

3. To companies which have amalgamated under a scheme of arrangement or compromise under the Act;

4. Where applications have already been filed for obtaining Dormant Status u/s 455 of the Act before this scheme

5. To vanishing companies

6. Where any increase in authorised capital is involved (SH-7) and also charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9)

Benefits of Companies Fresh Start Scheme, 2020

DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) eform are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No. 12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.

Effect of Companies Fresh Start Scheme, 2020

  • There is no need to pay additional fees on any return of company during the period of CFSS 2020 (April 1, 2020 to September 30, 2020)
  • Company shall withdrawal of appeal against any prosecution launched
  • RoC shall withdrawal all the prosecution pending regarding such forms/returns
  • RoC shall withdrawal the proceedings of adjudication of penalties u/s 54
  • RoC shall provide immunity certificate to company.

Conclusion: –

This CFSS 2020 is applicable on below mentioned forms: –

  • AOC-4 (Financial Statements)
  • MGT-7 (Annual return)
  • Others E-forms required to be filed with RoC

This CFSS 2020 is not applicable on below mentioned forms: –

  • SH-7 (increase in authorised capital)
  • All charge related forms (CHG-1, CHG-4, CHG-8 and CHG-9)

Hope the information will assist you in your Professional endeavours. In case of any query / information, please do not hesitate to write back to us at E: [email protected] and M: 9050320565

Author Bio

Qualification: CS
Company: Chinki Singhal & Associates
Location: NEW DELHI, New Delhi, IN
Member Since: 12 Jul 2018 | Total Posts: 15
CHINKI SINGHAL AND ASSOCIATES, is a Company Secretary proprietorship firm based in West Delhi, offering its expertise and Single Stop Solution for Corporate - Secretarial and Legal Requirements for all Corporate compliance requirements to the clients with a strong emphasis on ethics and ‘being on View Full Profile

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April 2021