MCA as COVID 19 relief providing initiatives with Central Govt., has introduced scheme namely Company fresh start Scheme, 2020 as one time opportunity to file various statements, documents and returns required under Companies act, 2013 as well as Companies Act, 1956.
Similar measures had been taken for LLP’s also namely LLP settlement Scheme, 2020. Although analysis related to companies is done as follows-
Objective of the scheme
1.Incentivize the compliance
2.Reduction in compliance burden
3.One time waiver of additional fees
Brief of the scheme:-
Companies Act, 1956 10 Forms
LLP 12 Forms
Companies Act, 2013 54 Forms
Matters which are at Appeallate level:-
In case no appeal has been filed:-
Non applicability of the scheme:-
Options available for Inactive Companies:-
I-Apply fro Dormant status by filling MSC-1
II-Apply for strike off by filling STK-2
Q 1.Whether scheme is applicable for MGT-14 not filed beyond 300 days?
Ans:-For filling of MGT-14 beyond 300 days, condonation from central govt. is to be firstly availed and then filling of relevant forms may be filed without any additional fees.
Q 2.What if all the directors are disqualified u/s 164(2)?
Ans. In case of disqualification of all directors of the co., firstly atleast one director is to be appointed then fresh filling may be made for availment of the scheme. Further as in the relevant case, it may take several months to depict on MCA portal, so for timely appointment of director in records of MCA, ticket may be raised.
Q 3.Whether if a company is striked off by the authorities but afterwards received Revival order is eligible for the scheme?
Ans. Yes, as the current status of the co. is active after receipt of revival order, so the scheme is available to file pending forms
Q 4.What if Company is still under strike off process, the scheme may be availed?
Ans. To avail the scheme, Active status is must for the company. So at first, revival application may be moved u/s 252(3) to NCLT for the same. After receipt of the same, this scheme may be availed for pending filling. Further as of now, if revival order is received after the expiry of the scheme, company could not able to avail this scheme.
Q 5.Whether the scheme may immune violations of all compliances under Companies act.
Ans. No, on ly immunity from the procedureal compliance related to relevant forms is provided. Immunity from the operation of law related compliance not be provided.
Q 6.What if the company has not filed Active Form (INC-22 A) and Director KYC also not done?
Ans. KYC of directors and Form Active, both are eligible for this scheme I.e. no additional fees. Firstly Director KYC is to be done, hereafter Form Active may be filed then all other pendancy may be initiated.
Q 7.Whether Scheme is available for PAS-3 (Return of allotment) and MSME forms?
Ans. Yes, as only SH-7 and charge related forms are excluded.
Q 8.Whether this scheme is available for name approval and Incorporation processes?
Ans. No. But for the extension of time limit of approved name and for resubmission of RUN form, concern may be raiseed to MCA. It may consider and extend the captioned time limit on case to case basis.
Q 9.Whether Scheme is available for Foreign Companies?
Q 10. Whether non compliance in respect to Scc 96 is eligible for the scheme?
Ans. No, as it is not related to filling of forms.
Q 11.Whether DPT-3 and Ben-2 are covereed in this scheme?
Q 12.Whether Nidhi Companies are eligible for this scheme?
Q 13.Whether immunity from prosecution for non filling of the forms for which nil normal fees is applicable?
Ans.Clarification may be issued by ROC.
Q 14.Whether there would be any chance of prosecution to the Company secretary filling the relevant forms?
Ans. No, it is subject to the management disputes with CS.
Q 15.Whether this scheme is available for Event based non compliance I.e. No. of directors, Not holding AGM etc?
Ans. No, only form filling related non compliance will be immuned in this scheme.
Q 16.Whether there is any exemption in filling of forms?
Ans. No, only Additional fees is waived.
Q 17.Whether seperate Board resolution is required to file CFSS-2020 Form?
Ans. Yes, resolution to file relevant form shall be of the period after the expiry of the scheme.
Disclaimer: All efforts have been made to avoid errors or omissions. The information provided in this article is for general informational purposes only. All the contents are merely views expressed by the authors. While it is tried to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability or suitability with respect to the information or related graphics contained for any purpose. Authors will not be responsible for any damage or loss to any one, of any kind, in any manner.