Difference in Companies fresh start scheme, 2020 & LLP settlement scheme, 2020

MOHIT JAIN 24 Apr 2020 3,018 Views 0 comment Print Company Law | Articles

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Article explains Background, Duration, Applicability, Non-Applicability and Manner of Payment under Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme, 2020. It further explains about Immunity from Prosecution and Application for Issuance of Immunity Certificate under Companies Fresh Start Scheme, 2020 and LLP Settlement Scheme, 2020.

S.NO.	PARTICULARS	COMPANIES FRESH START SCHEME, 2020	LLP SETTLEMENT SCHEME, 2020
1.	BACKGROUND	In order to give an opportunity to the defaulting companies and to enable them to file the belated documents/ forms in the MCA 21 registry, The Central government has decided to introduce a scheme namely”Companies Fresh Start Scheme, 2020” condoning the delay in filing the documents/ forms with the Registrar, in so far as it relates to additional fees.	As part of Government’s constant efforts to promote Ease of doing business it has been decided to introduce *“LLP Settlement Scheme, 2020”* in order to give a One-time relaxation in additional fees to the defaulting LLPs to make good their default by filing pending documents/ forms and to serve as a compliant LLP in future.
2.	DURATION OF THE SCHEME	The Scheme shall come into force from on *April 01, 2020* and will remain in force till *September 30, 2020*.	The Scheme shall come into force from on *April 01, 2020* and will remain in force till *September 30, 2020*.
3.	APPLICABILITY	Any *“Defaulted Company”* is permitted to file belated documents/ forms which were due for filing on any given date in accordance with the provisions of this scheme.	Any *“Defaulted LLP”* is permitted to file belated documents/ forms which were due for filing till *August 31, 2020* in accordance with the provisions of this scheme.
4.	MANNER OF PAYMENT	The *“defaulting Companies”* may themselves avail this scheme for filing documents/ forms which have not been filed or registered in time on payment of normal fee as payable for filing such documents or forms. No *Additional Fees* shall be payable for filing any belated document/ form under this scheme.	The *“defaulting LLPs”* may themselves avail this scheme for filing documents/ forms which have not been filed or registered in time on payment of normal fee as payable for filing such documents or forms. No *Additional Fees* shall be payable for filing any belated document/ form under this scheme.
5.	IMMUNITY FROM PROSECUTION	The defaulting Companies, which have filed their pending documents/ forms till *September 30, 2020* and made good the default, shall not be subjected to prosecution by Registrar for such defaults. Provided, such immunity is only in respect of prosecution associated with the filing of belated documents. Any other consequential proceedings would not be covered.	The defaulting LLPs, which have filed their pending documents/ forms till *September 30, 2020* and made good the default, shall not be subjected to prosecution by Registrar for such defaults.
6.	APPLICATION FOR ISSUANCE OF IMMUNITY CERTIFICATE	The Application for seeking immunity in respect of belated documents/ forms filed under this scheme may be made in “*Form CFSS-2020”* after closure of the scheme but not later than Six (6) months from closure of the scheme. There shall be no fee for filing CFSS-2020 form.	No such form needs to file under the LLP Settlement Scheme, 2020.
7.	SCHEME SHALL NOT APPLY	This Scheme shall not apply to the company:- (i) Against which action for final notice for Strike off already been initiated; (ii) Where an application for strike off already been filed; (iii) Companies which have amalgamated; (iv) Where an application for Dormant status has already been filed before commencement of this scheme; (v) To Vanishing Companies (*Non- Traceable Companies);* (vi) To belated filing of form SH-7 and Form CHG-1, CHG-4, CHG-8 & CHG-9.	This Scheme shall not apply to LLPs:- (i) Which has made an application in Form 24 to the Registrar, for striking off its name from the register.