Due to COVID-19 epidemic disaster, shaken the entire world and Ministry of Corporate affairs has given light to the ‘Deafulting and Non operating Companies’ to combat with economic disruptions to make a fresh start. In furtherance to its General Circular No. 12/2020 dated 30th March, 2020 by notifying ‘Companies Fresh Start Scheme, 2020′.

“COMPANIES FRESH START SCHEME 2020” 

Due to COVID-19 epidemic disaster, shaken the entire world and Ministry of Corporate affairs has given light to the”Defaulting Companies” to combat with economic disruptions and also to make a fresh start on a clean slate, In furtherance to its General Circular No. 11/2020 dated 24th March, 2020 & vide its General Circular No. 12/2020 dated 30th March, 2020 by notifying “Companies Fresh Start Scheme, 2020” 

Provisions of Companies Fresh Start Scheme-2020: 

 Provisions as per Companies Act 2013 The Central Government in exercise of its power u/s 460 of the Companies Act, 2013 read with section 403 has decided to introduce a scheme namely Companies Fresh Start Scheme, 2020, by allowing a One-time con donation of delay in filing statutorily required documents with the Registrar.
Commencement of Scheme 1st April, 2020 up to 30th September, 2020.
 Applicability of Scheme to Companies.  Any “Defaulting companies and Non-compliant Companies” is permitted to file documents, which were due for filing with Registrar of Companies on any given date in accordance with the provisions of this Scheme.
Payment of Fees and additional fees as per 2020 Scheme The defaulting Companies may file forms by making payment of normal fees as prescribed under the Companies (Registration offices and Fee) Rules, 2014 on the date of filing of each belated document and no additional fee is levied.
Seeking Immunity under the scheme: Immunity shall be granted to defaulting companies from launch of prosecution and proceedings for imposing penalty to the extent to delay associated with the filings of belated documents.
Withdraw of Appeal: If a company has filed an appeal against any notice issued or complaint filed or an order passed by a court or by an adjudicating authority regarding statutory filing under the Act, then the company shall before filing an application for issue of immunity certificate, withdraw such appeal and furnish  proof of withdraw of appeal along with application.
In case order is passed but appeal could not be filed: When any order regarding delay associated in filing of document, statement or return etc. and penalties  were imposed by an adjudicating officer and appeal is not filed until 1st April 2020 and the last date of appeal falls between 1st March 2020 and 31st May, 2020, then additional period of 120 days i.e. until 28th September, 2020 shall be given for filing an appeal before the concerned RD. 

Also No prosecution regarding non-compliance of order of adjudicating authority shall be initiated against the company during such additional period.

Application    for    Issue  of Immunity: Application for seeking immunity regarding belated documents filed under the scheme shall be made in e- Form CFSS-2020 after closure of the scheme and documents are taken on file or on record or approved by Designated authority but before six months from closure of the scheme. 

NO FEES PAYABLE FOR FILING THE FORM.

Issue of  Immunity Certificate: Designated authority shall issue Immunity certificate in respect of documents filed under the scheme based on declaration made in Form CFSS-2020.
CFSS Applicability to E-forms All E- forms except the below mentioned.

1.  SH-7 Increase in authorized Share Capital

2. CHG-1, CHG-9, CHG-8 or CHG-9 (Charge related E-forms)

CFSS not Applicable to following Companies i.  Company against which final notice of strike off under Section 248 of the Act has already been initiated by designated authority. 

ii.  Where Company has already filed STK-2 an application for striking off the name of the Company from Register of Companies. 

iii.  Companies which have amalgamated under a scheme of compromise and arrangement. 

iv.  Dormant status Companies. 

v.  Vanishing Companies. 

vi.    Where Companies are marked as “under Corporate insolvency resolution process or liquidation”.

  • TIMELINES
Commencement of Scheme 1st April, 2020
Scheme Shall remain in force up to 30th September, 2020

Frequently Asked Questions (FAQ) 

Sr. No. Questions Answer
1. What is Companies Fresh Start Scheme- 2020? One-time opportunity to make clean start Scheme for filing statutory documents/e-forms of Companies which were due for filling by paying normal fees and no additional fees per form with the Registrar of Companies.
2. Duration of Scheme? 1st April, 2020 to 30th September,2020
3. On which type of Companies this scheme is applicable? Only to defaulting companies and Non- Compliant Companies with ROC
4. Any Additional fees during the Scheme? No additional fees Charged on filing any forms under the scheme with Registrar of Companies except below mentioned forms.
5. On which type of Forms this scheme is applicable? Applicable on all E-forms except

1. SH-7

2. CHG-1, CHG-9,CHG-4, CHG-8

6. When the Immunity is granted? After filing application of immunity after the closure of scheme but before six months from closure of the scheme.
7. Can immunity granted to all companies? Immunity shall not be granted if appeal against order of court or any adjudicating authority is pending.
8. What are the Consequences if the Defaulting company doesn’t take benefit of Companies Fresh Start Scheme-2020? If the Defaulting company doesn’t take benefit of Companies Fresh Start Scheme – 2020,  then the said companies have to file forms with additional fees (THAT MAY BE HUGE AMOUNT) in addition to any fee that is normally payable. 

OR 

Registrar may Initiate Prosecution against Defaulting companies.

9. What are the Advantages to the Defaulting companies those took benefit of Companies Fresh Start Scheme-2020? i. Monetary benefits as Huge amount of Additional fees is waived. 

ii.  The defaulting companies, which have filed their pending Forms till 30th September, 2020 and made good the default, shall not be subjected to prosecution by Registrar for such defaults.

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