Opportunity For Defaulting Companies To File Pending Annual Statutory Documents / Forms And Other Documents / Forms Without Any Penalty

AN INTRODUCTION

Ministry of Corporate Affairs (MCA) introduced a scheme which gives an opportunity to the Companies to make all its pending compliances (including annual filing) without any additional fees.

This means that the Companies can file the pending documents with only normal fees applicable to the Company without payment of any penal amount

i.e., “NO PENALTY- USE THE OPPORTUNITY AND SAVE YOUR MONEY”

FAQ

Q 1. What is the actual name of the Scheme?

Ans: Companies Fresh Start Scheme, 2020.

Q 2. From which date shall the scheme will start and end?

Ans: Starting date: 01.04.2020,

Ending date: 30.09.2020.

Q 3. What is the USP of the Scheme?

Ans: One time opportunity for Companies for delayed filing without any penalty.

Q 4. On which organization the Scheme is applicable?

Ans: The Scheme is applicable to all the Defaulting Companies i.e., those Companies which have made default in filing of Documents, statements, returns etc. including annual statutory documents.

Q 5. On which forms the Scheme is applicable?

Ans: The scheme applies to all e-forms required to be filed with MCA except the follows:

  • SH-7 (Form filed for increase in authorized capital of the Company)
  • Charge related forms:-

> CHG-1(Form for creation and modification of Charge other than related to Debentures)

> CHG-4(Form for satisfaction of charge)

> CHG-8(Form for extension of time for filing creation / modification / satisfaction of charge)

> CHG-9(Form for creation or modification of charge for debentures)

Q 6. Example of cases in which we can avail the scheme?

Example 1:

Let’s suppose, Sun Private Limited was incorporated on 1 January, 2015, since then, the Company is not filing its annual filing documents with ROC (i.e., form AOC-4 & MGT-7.ADT-1) because the Company was not aware of this requirement.

Now, what can the Company do?

In this case, by taking benefit of the scheme, the Company can file its all pending annual filing documents(form AOC-4 & MGT-7 other E forms ) with normal fee applicable to the Company as if the documents were filed on due date by the Company.

Example 2:

Let’s Suppose, Moon Star Private Limited,in Financial Year 2017-18, removed one Director from the Company and added another Director to the company, for which filing of form DIR-12 was required but the Company do not filed thesame.

Now, what can the Company do?

In this case, by taking benefit of the scheme, the Company can file form DIR-12 with normal fee applicable to the Company as if the documents were filed on due date by the Company.

Q 7. Example of cases in which we cannot avail the scheme?

Example 3:

Let’s Suppose, Galaxy Light Limited increased its Authorized capital on 31st April 2016,from 1 lac to 5 lac, for which Company was required to file form SH-7, but the Company do not filed the same and as on date the late fee applicable to the Company is Rupees 20,000 along with normal fees payable to MCA .

Now, what can the Company do?

The Scheme do not allows the filing of form SH-7 without payment of late fees, and hence, the Company has to file the form via normal route only by payment of late fee.

Q 8. How can the benefit of the Scheme be utilized?

Ans: The Company has to file a form for “Issue of Immunity Certificate” for which the filing fees is nil.

After receipt of the above mentioned form, ROC will issue an immunity certificate to the Company i.r.t documents filed under the scheme.

Q 9. Is there any case, in which the Scheme shall not apply?

Ans: Yes, The Scheme shall not apply in the following cases:

  • Final notice for striking off the name of the company already issued by the ROCs;
  • The company made an application for striking off the name of the company from ROCs;
  • Companies amalgamated under the scheme of compromise & arrangement;
  • The company applied for dormant status before the scheme introduction
  • Vanishing Companies;
  • Documents related to Increase in authorized share capital (Form SH-7);
  • Charge related documents (CHG-1, CHG-4, CHG-8 & CHG-9);

Q 10. Is there any Benefit to Inactive Companies?

Ans: Yes, as along with filing of pending documents, an inactive Company can apply for the following also, by payment of normal fee:

  • Declare itself as Dormant Company by filing form MSC-1,
  • Apply for striking off by filing form STK-2

Q 10. Is there any threat to a Company which has pending compliances but still don’t want to take benefit of the scheme and want to continue as a defaulting Company even after the closure of the scheme?

Ans: Yes, ROC will take necessary action against these Companies after the conclusion of the scheme i.e., after 30th September, 2020.

Q 11. Is there any benefit in the scheme other than waiver of penalty for late filing?

Ans: Yes,This Scheme provides launching of immunity to Companies in relation to prosecution or proceeding for imposing an additional penalty on account of delay associated with certain filings.

Q 12. If the Company or any officer in default has filed any appeal before competent authority, against any notice issued/ Complaint filed/Order passed by Court under the provisions of Companies Law, in respect of application made under the Scheme by the Company, then, is there any special requirement for availing benefit of the Scheme?

Ans: Yes, Applicant shall withdraw the appeal before filing the application for immunity (i.e. for waiver of fee and closure of prosecution) and have to submit a proof of withdrawal along with application for granting immunity.

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