What is this Company Fresh Start Scheme – 2020 (CFSS-2020)

The Ministry of Corporate Affairs has provided an opportunity to corporates to make a “Fresh Start” in their life by issuing a General Circular No. 12/2020 dated 30th March 2020. MCA introduced a scheme called ‘COMPANIES FRESH START SCHEME 2020 (CFSS-2020)’.

The salient features of this scheme have been discussed here:

Benefits to Company:

  • Full Waiver for Payment of Additional Fees/ Penalty
  • Immunity from launch of prosecution
  • Immunity from proceedings for imposing penalty

Applicable for:

  • Companies which has not filed Annual Return and Financial Statements to ROC /MCA i.e. Form AOC-4, AOC-4 XBRL, AOC-4 CFS,  Form MGT-7
  • Companies which has not filed any E Forms that are required to be filed to ROC /MCA and not filed i.e. Form MGT-14, ADT-1, Form DPT-3 , Form DIR-12, Form 20A, INC 22 except SH-7 & Charge related forms.


  • From 01-04-2020 to 30-09-2020 (Pending documents can be filed in this period)

Fee Payable for Filing of Documents:

  • Normal Filing Fee without any penalty

What is E-Form CFSS-2020: (Application of issue of immunity certificate)

  • E Form to be filed after filling all belated documents mentioning SRN of the e-forms
  • Required to be Filed with MCA
  • Within 6 Months after the End of the Scheme
  • No Filing Fee for E Form CFSS-2020
  • Certificate of immunity will be issued by ROC
  • After certificate of immunity, no prosecution or proceedings can be initiated
  • Company will withdraw all appeals against any prosecution and ROC will withdraw all the proceedings

Non Applicability of CFSS-2020:

  • Company under Strike off
  • Amalgamated Companies
  • Applications filed for obtaining Status of Dormant Companies
  • Vanishing Companies
  • Form SH-7 for Increase in Authorized Share Capital
  • Form CHG-1 , CHG-4, CHG-8, CHG-9 related to Charge

Inactive Companies:

While making filing of the due statutory documents under CFSS-2020, can file simultaneously :

  • Application for Obtaining Status of Dormant Company OR
  • STK-2 for Strike of Name of Company

Action by ROc/MCA:

  • If Pending Returns/ Documents are not filed
  • MCA/ROC will take action as per provisions of Companies Act, 2013 which provides for very high penalties

Author Bio

Qualification: CA in Practice
Company: M Agarwal & Associates
Location: Narnaul, Haryana, IN
Member Since: 01 Apr 2020 | Total Posts: 1

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June 2021