MCA issues General Circular No. 12/2020 dated 30.03.2020 to notifiy Company Law Fresh Start Scheme, 2020 which is  for the benefit of all Companies who have defaulted in filing of Statutory forms on MCA.

This Scheme will comes into operation from 01st April, 2020 and will end on 30th September, 2020.

Company Law Fresh Start Scheme, 2020 is a Scheme condoning the delay in filing the form mentioned below with the Registrar, in so far it is relate to

a) charging of Additional Fees and

b) granting of immunity from launching of Prosecution or

c) proceedings for imposing Penalty on account of delay associated with filings.

As per Company Law Fresh Start Scheme, 2020 (CFSS, 2020) Companies have to pay ONLY NORMAL FEES of the forms WITHOUT ANY ADDITIONAL FEES.

Scheme shall apply on Following forms:

This CFSS, 2020 is applicable on below mentioned forms including:

♦ Annual Return- MGT-7

♦ Financial statement- AOC-4

♦ Other forms required to be file with Roc Like

– PAS-3

– MGT-14

– ADT-1

– Any other form

Except two forms.

– SH-7- Increase in Authorized Capital

– Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9)

Company Law Fresh Start Scheme, 2020 shall not apply on Following:

a) To company against which action for final notice for striking off the name u/s 248 of the act has already been initiated by the Designated Authority.

b) Where Company has already filed STK-2 for strike off of Company with ROC.

c) Companies which have amalgamated.

d) Whether application has already been filed for obtaining Dormant Status.

e) To Vanishing Companies.

f) Where companies marked for CIRP or Liquidation.

g) Following Forms:

– SH-7 for increase in authorized capital

– Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9)

Effect of Company Law Fresh Start Scheme, 2020:

a) No Need to pay any additional fees on any return of Company during Scheme.

b) Authority shall provide immunity certificate to Company.

c) Company shall withdrawal of appeal against any prosecution launched.

d) ROC Shall withdrawal all the prosecution pending regarding such forms/ returns.

e) ROC shall withdarawal the proceedings of adjudication of penalties u/s 454.

1. On which type of forms this scheme shall be applicable
This scheme shall be applicable on All The Forms Except:

– SH-7 for increase in authorized capital

– Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9)

2. What shall be per day additional fees as per Scheme?
MCA shall not charge any additional fees in the given time period of 6 Months. Only Normal Fees of the forms shall be required to pay by the Companies.
3. What is meaning of defaulting Company?
Defaulting Company means a Company defined under Companies Act, 2013 and

Companies Which has made a default in filling of

– Any of Document,

– Any of Statement,

– Any of Return etc

– Including Annual Statutory Document

4. From which dates Companies will allow to file forms under this Scheme?
LLPs shall avail this scheme w.e.f. 1st April, 2020 and can file all pending forms till 30th September, 2020
5. What is the cut off dates of forms falling under this scheme?
Companies are allowed to file all the pending forms with ROC irrespective of any cut off date.

Scheme for Inactive Copaneis:

A defaulting inactive companies while filing pending form under scheme simultaneously can apply for followings:

– Appy for Dormant u/s 455

– Apply for Strike off U/s 248

(Author can be contacted at [email protected]).

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May 2021