Q. What is Company Law settlement Scheme, 2010 (CLSS), 2010?
A. “Company Law Settlement Scheme, 2010” is a scheme to give opportunity to the defaulting Companies to enable them to make their default good by filing belated documents and to become a regular compliant in future. Refer General Circular No 1/2010 available on MCA portal under News & Events and under heading Act, Bills and Rules.
Q. What is the time period of the Scheme?
A. The Scheme shall come into force on the 30th May, 2010 and shall remain effective up to 31st August, 2010.
Q. What are the benefits available under CLSS, 2010?
A. Under the scheme, for the belated documents, the Company shall pay statutory filing fees as prescribed under the Companies Act and rules made there under along with an additional fee of 25 percent of the actual additional fee i.e. there shall be a waiver of 75% of the actual additional fee.
Further, after closure of Scheme, the company may file application for seeking immunity in respect of belated documents filed under the Scheme and the Registrar, upon being satisfied shall grant the immunity from prosecution in respect of documents filed in the Scheme.Online GST Certification Course by TaxGuru & MSME- Click here to Join
After granting the immunity, the Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s).
Application for issue of immunity certificate under CLSS, 2010 shall be available on the portal after the closure of the scheme.
Q. What are the documents on which CLSS, 2010 is not applicable?
A. CLSS, 2010 shall not be applicable for the following:
Q. A company is not having paid up capital up to the threshold limit provided in sub-section (3) and sub-section (4) of Section 3 of the Companies Act, 1956. Whether such company shall be allowed to file its belated documents and avail the benefits of the scheme?
A. Yes , the company can avail the benefits of the scheme. However, such company shall first file its documents to increase the paid up capital up to the threshold limit under the scheme and thereafter would be allowed to file other belated documents.
Q. Is there any time period for filing application for grant of immunity under CLSS, 2010?
A. Yes, the application can be filed after closure of Scheme and after the belated document(s) filed during CLSS, 2010are taken on file, or on record or approved by the Registrar of Companies as the case may be, but not after the expiry of six months from the date of closure of the Scheme.
Q. Is there any fee for filing application for grant of immunity under CLSS, 2010?
A. No, there is no fee for filing the application