Companies Fresh Start Scheme, 2020 and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes.

Validity of Companies Fresh Start Scheme, 2020

This scheme shall be start from 01st April, 2020 and end on 30th September, 2020.

A Scheme condoning the delay in filing the form mentioned below with the registrar in so far it is relate to

a) Charging of Additional Fees and

b) Granting of immunity from launching of Prosecution or

C) Proceeding for imposing Penalty on account of delay associated with filings.

As per scheme Companies have to pay Only Normal Fees of the Forms WITHOUT ANY ADDITIONAL FEES.

Applicability of Company Law Fresh Start Scheme- 2020

This Company Law Fresh Start Scheme- 2020 is applicable on below mentioned forms including:

1. Annual Return Form MGT-7

2. Financial Statement AOC-4

3. Other forms required o be file with ROC like

– MGT-14

– ADT-1

– Any other form

Except below mentioned forms.

– SH-7   (Increase in Authorized Capital)

– Charge related form ( CHG-1, CHG, CHG-8 or CHG-9)

Non-Applicability of Company Law Fresh Start Scheme- 2020

a) To Company 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.

b) Where Company has already filed STK-2 for strike off of Company with ROC or final notice for Strike off the name u/s 248 of The Act has already been initiated by the Competent Authority.

c)  Companies which have amalgamated under the scheme of Compromise or arrangement under the Act.

d) Whether application has already been filed for obtaining Dormant Status u/s 455 of The Act before this scheme.

e)  To Vanishing Companies.

f)  Where the increase in authorised capital involved Form SH – 7 and also charge related from (CHG-1, CHG-4, CHG-8 or CHG-9)

Effect of Company Law Fresh Start Scheme- 2020

a)  No Need to pay any additional fees on any return of Company during Scheme.

b) Authority shall provide immunity certificate to Company.

c) Company shall withdrawal of appeal against any prosecution launched.

d) ROC shall withdrawal all the prosecution pending regarding such forms/ returns.

e) ROC shall withdrawal the proceedings of adjudication of penalties u/s 454.

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  1. sanjeevnanda says:

    Given the frankly angered response by the MSME community of India, over penalties, during filing of ITRs, the FinMin has retraced their steps as a means of course correction. I’m happy that this ruling actually makes a shred of sense. Given the devastating blow that the Coronavirus pandemic, and subsequent lock-down has dealt the market, such a relief is only desirable.
    ~Sanjeev Nanda

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June 2021