Ministry of Corporate Affairs (‘MCA’) has introduced a scheme known as Companies Fresh Start Scheme (‘Scheme’) on 30th March, 2020 pursuant to General Circular No. 12/2020 in order to facilitate defaulting Companies by enabling them to file belated returns/documents that are required to be filed on MCA 21 electronic registry without charging any additional fees on account of any delay till 31st December, 2020.

Period of Scheme

Initially the Scheme came into force for a period of six months starting from 1st April, 2020 to 30th September, 2020 but the said Scheme was extended till 31st December, 2020 due to large scale disruption caused by Covid-19 Pandemic on 28th September, 2020 pursuant to General Circular No. 30/2020.

Immunity Under the Scheme

  • Every defaulting company shall be required to pay normal fees as prescribed under the Companies (Registration Offices and Fee) Rules, 2014 on the date of filing of each belated document and no additional fee shall be payable.
  • Immunity from the launch of prosecution or proceedings for imposing penalty shall be provided and the application for the same is required to be made electronically in Form CFSS-2020 after the closure of the scheme i.e., 31st December, 2020 after the document (s) are taken on record or approved by the Designated authority but not after the expiry of Six months from the closure of the Scheme.
  • Based on the declaration made in Form CFSS-2020 an immunity certificate in respect of documents filed under this Scheme shall be issued by the Designated Authority.
  • No fee is payable of Form CFSS-2020.

Introduction of Form CFSS-2020

  • Form CFSS-2020 was introduced by MCA on 16th January, 2021.
  • The last date of filing Form CFSS-2020 is 30th June, 2021.

Non-Applicability

This Scheme shall not apply to: –

  • Companies under the process of strike off.
  • Companies which have amalgamated under a scheme of compromise or arrangement under the Act.
  • Companies where applications have already been filed for obtaining Dormant status under section 455 of the Act before this Scheme.
  • Vanishing Companies.
  • Where any increase in authorized share capital is involved.
  • Any charge related documents
  • SRN of Forms SH-7, CHG-1, CHG-4, CHG-8 and CHG-9 are not required to be mentioned in Form CFSS- 2020.

*****

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and information available at the time of preparation of this document. Utmost care has been taken to ensure the accuracy, completeness, and reliability of the information provided but In no event the author shall be responsible for any direct or indirect, special or incidental damage resulting from or arising out of or in connection with the use of the information provided in the article.

Author Bio

Qualification: CS
Company: Piyush Garg & Associates
Location: Delhi, Delhi, India
Member Since: 15 Apr 2021 | Total Posts: 4
I am a Practicing Company Secretary based at Delhi, having an experience of 5+ years in the field of Company Law and related matters. View Full Profile

My Published Posts

More Under Company Law

Leave a Comment

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

Search Posts by Date

May 2021
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31