Ministry of Corporate Affairs (MCA) vide its general circular no. 12/2020 dated 30.03.2020 has introduced Companies Fresh Start Scheme, 2020 by providing a golden opportunity to the defaulting Companies/Non-Complaint Companies registered in India to make a fresh start to complete their pending compliances by removing the levy of higher additional fees on account of delay for the benefit of all such companies except for certain forms.
1) What is the basic intent to introduce Companies Fresh Start Scheme,2020?
Companies Fresh Start Scheme is introduced in order to provide an opportunity to the defaulting companies/Promoters to enable them to file belated documents by availing benefit of complete waiver of higher additional fees
2) Is there any opportunity for companies which are currently inactive?
Yes, the scheme provides an opportunity to inactive companies also to get their companies declared as “dormant company” under section 455 of the Act by filing a simple application at normal fee
3) What is the period of scheme for which it will remain in force?
The scheme shall come into force on 01.04.2020 and shall remain in force till 30.09.2020
4) Which companies are covered under this scheme?
Any defaulting Company is permitted to file belated documents which were due for filing and means a company as defined in Section 2(20) of the Companies Act,2013 which means a company incorporated under this act or under any previous company law
5) Is there any additional fees also be payable for belated forms?
Every defaulting company shall be required to pay normal fees as prescribed under companies (Registration Offices and Fee) Rules, 2014 and no additional fees shall be payable.
6) Whether scheme will apply to all cases or are there any exceptions/exclusions?
No, this scheme shall not apply to
1. Companies against whom notice has been issued for strike off i.e. mandatory striking off by the government;
2. Where an application has already been filed by companies for strike off;
3. Companies Which have been amalgamated;0
4. Where application has already been filed for dormant status;
5. Vanishing Companies;
6. Where any increase in capital is involved (e-Form SH-7) and charge related documents
(CHG-1, CHG-4, CHG-8 and CHG-9)
7) After completion of scheme, what would be the effect of this scheme?
Immunity certificate will provided to the respective companies which have filed their respective forms.
8) When we can apply for immunity certificate?
Immunity certificate can only be applied after 30.09.2020 not before that and there is a time period of six months of making application for immunity certificate i.e. after 30.09.2020
9) Which forms will be covered under this scheme for waiver of additional fees?
Approx 54 forms of Companies Act,2013 and 10 forms of Companies Act, 1956 are covered under this scheme. The list of eligible forms can be accessed at the MCA website.
Increase in Share Capital form (SH-7) and charge related forms will not be covered under this scheme.
10) Whether form MGT-14 which is required to be filed within 300 days but cannot be filed, whether MGT-14 can be filed without additional fees and also condonation of delay will be required or not?
Yes, MGT-14 can be filed without additional fees but the process for the condonation aspect will remain same. Only additional fees will not be levied.
11) If all the directors are disqualified and company want to avail benefit under this scheme, the what would be the option available?
In respect where all directors are disqualified, the company will have to follow the process of appointing signatory from backend office and afterwards, can proceed to avail the benefit under this scheme.
12) In case Director DIN is deactivated due to non-filing of form DIR-3 KYC or web-based KYC, whether additional fees will be levied for filing the same?
No, in case the Director DIN in deactivated due to non-filing of KYC forms, then no additional fees would be levied.
13) Whether the companies which have filed the delayed forms with additional fees, is there any possibility to take the refund?
No, Since the effect of scheme is prospective, therefore, no such question arises for taking refund for the earlier filed forms with delayed fees.
14) Whether company which is having status of strike off can take benefit under this scheme?
No, the company which is having strike off status can not take benefit under this scheme, the company has to first follow the revival process and then avail the benefit.
15) Is there any Special provision for cases where order of adjudicating authority was passed but the appeal could not be filed.
In all cases where the last date for filing the appeal against the order of adjudicating order under section 454(6) falls between 1st March,2020 to 31st May,2020, a period of 120 additional days shall be allowed w.e.f. such last date to all companies and their officers for filing the appeal before the concerned Regional Directors.
Disclaimer: The Author does not in any way take responsibility & guarantee towards the 100% accuracy of the information provided in this article. The Author has tried to prepare the article based on the relevant information available & is a mere opinion of author. Other views are most welcome for the suggestions or improvements to be done in the article.
The author is a Company Secretary in practice & for any query/suggestion can be reached at +91-8826108009 or e-mail at [email protected]