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In pursuance of the Government of India’s efforts to provide relief to law abiding companies and in the wake of COVID 19, the Ministry of Corporate Affairs, has introduced the ‘Companies Fresh Start Scheme, 2020‘ a first of its kind opportunity to companies to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
The Nutshell of the Companies Fresh Start Scheme, 2020 introduced by MCA with General Circular No. 12/2020 dated 30/03/2020 is as follows:
| 1 | Period for which Scheme is open : | 01/04/2020 to 30/09/2020 | |
| 2 | Applicability : | A defaulting company# for filing belated documents due for filing on any given date | |
| # A defaulting company means a company which has default in filing any documents, statements, returns etc. including annual statutory documents on MCA 21 registry | |||
| 3 | Benefits : | a | Pay only Normal fees, no additional fee payable |
| b | Immunity from launch of prosecution* | ||
| c | Proceedings for imposing penalty* | ||
| * only pertaining to delay associated with filing of belated documents | |||
| 4 | Companies for which this scheme is not applicable : | a | Companies against which final notice for Striking off the name initiated |
| b | Companies which have voluntary filed application for Striking off the name | ||
| c | Companies which have been amalgamated | ||
| d | Companies applied for Dormant Status | ||
| e | Vanishing Companies | ||
| 5 | Forms for which this scheme is not applicable : | a | Increase in authorised capital involved (Form SH-7) |
| b | Charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9) | ||
| 6 | Cases were Immunity of this scheme not applicable : | a | Any matters pending before court of law |
| b | In case of management disputes of company pending before any court of law or tribunal | ||
| c | Court has ordered conviction in any matters and no appeal preferred before this scheme | ||
| d | Any order imposing penalty has been imposed and no appeal preferred before this scheme | ||
| 7 | Special Provision for Cases where Penalty order was passed and appeal could not be filed as last date of filing appeal falls between 1 March, 2020 to 31 May 2020 : | a. | A period of additional 120 days allowed from the last date of filing appeal |
| b. | During additional period, no prosecution* of noncompliance of the orders shall not be initiated | ||
| * only pertaining to delay associated with filing of belated documents |
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