In order to facilitate the compliance of various e-forms with MCA, MCA has introduced CFSS-2020 i.e. Companies Fresh Start Scheme, 2020.
This scheme has been launched to give the opportunity to defaulting companies and to enable them to file belated documents and forms with MCA.
Key points of this Scheme: –
1. The scheme shall come into force on the 01.04.2020 and shall remain in force till 30.09.2020.
2. Annual Filing of any year without any additional fee can be done by the company till 30.09.2020
3. If the defaulting company has filed any appeal against the order of court or any notice regarding violation of Companies, Act,2013, the Company shall have to withdraw the appeal before filing an application for the issue of Immunity Certificate.
4. In case any penalty is imposed by the adjudicating officer in regard to delay of filing of various forms on MCA, and no appeal has been filed by the company against such order, then:-
a. Where the last day for filing of appeal against such order falls between 01.03.2020 to 31.05.2020, then an additional time period of 120 days from such last date, shall be allowed to all companies.
b. During such an additional period, no proceeding in so far which relates to non-filing or delay in filing of documents on MCA, shall not be initiated against such company.
5. The application for seeking immunity under this section can be made by filing Form CFSS-2020. This form can be filed after all belated documents have been filed by the defaulting company.
6. Form CFSS-2020 can be filed within 6 months of the closure of the scheme, that is by 31.03.2021.
7. Effect of Immunity Certificate
After the certificate is received by the company, all pending appeals or prosecutions with respect to non- filing of documents shall be withdrawn.
8. Scheme shall not apply to: –
a. Companies who have applied for striking off
b. Vanishing Companies
c. Companies who have applied for Dormant status
d. Companies which have amalgamated under a scheme
e. E-forms for increase in authorized capital
f. Filing of charge related documents- CHG-1, CHG-4, CHG-8, CHG-9
9. This scheme is also applicable for LLPs
This article is based on personal understanding of the author and the source of this article is the Circular issued by the MCA. The contents are not conclusive.