Companies Fresh Start Scheme CFSS 2020

Companies Fresh Start Scheme 2020 (CFSS-2020)

For the benefit of all companies, Ministry of Corporate Affairs facilitates, Companies Registered in India, to make a fresh start.

The Companies Fresh Start Scheme 2020 CFSS is meant to facilitate Companies to file their pending compliances, forms and documents including Annual Filings without being subject to payment of additional fees on account of delay.

Only normal fees for filing of documents will be payable at MCA.

10 Important features of Companies Fresh Start Scheme 2020 (CFSS-2020) are;

1.  Tenure of scheme: from 01.04.2020 to 30.09.2020 

2. Applicability Any defaulting company is permitted to file belated  documents which were due for filing on any given date as per scheme.

3. Manner of payment Every defaulting company shall be required to pay normal fees on the date of filing and no additional fees shall be charged.

4. Withdraw of Appeal If the defaulting has filed an appeal against any notice issued by court or adjudicating authority, the applicant shall withdraw the appeal before filing application for immunity under the Companies Fresh Start Scheme 2020 (CFSS-2020).

5. If an order was passed by the adjudicating authority for delay in filings of documents, forms and no appeal is preferred by the defaulting company then

1.  Where the last date of filing the appeal against the order is between 01.03.2020 to 31.05.2020, a period of 120 additional days shall be allowed for filing the appeal before the concerned Regional director.

 

2.  During such additional period, prosecution for non compliance of the order as much as it relates to filing shall not be initiated against such companies or their officers.

6.  Application for seeking immunity under the Companies Fresh Start Scheme 2020 (CFSS-2020) may be made electronically in Form CFSS-2020 after closure of scheme but not later than 6 months from the closure of scheme. No fees payable on this form.

    7. Inactive companies while filing due documents can simultaneously

1.  Apply for Dormant status under section 455 of the Companies act, 2013 through MSC 1

or

2.  Apply for striking off through STK 2

   8. At the conclusion of the scheme, designated authority shall take necessary action against the companies who have not availed the scheme and are in default in filing of pending documents.

    9. Non applicability of Immunity

1.  Authorize Capital (Form SH 7) and Charge related documents(CHG 1, CHG 4, CHG 8, CHG 9)

2. This immunity shall not be applicable in case of appeal pending before the court of law

3.  In case of management dispute

4.  In case Court has ordered conviction

5.  Order imposing penalty has been passed and no appeal has been preferred before this scheme came into force.

6.  Companies against which action for final notice u/s 248 has already been initiated

7.  Application for striking off the name of the company has already been filed.

8.  Companies which have amalgamated under a scheme of arrangement

9.  Application already been filed for obtaining dormant status

10.  Vanishing companies

   10. DIR 3 KYC and INC 22A are also covered under the Companies Fresh Start Scheme 2020 (CFSS-2020) thus filing fees of 5000/10000/- not required to be paid during the scheme.  

Further LLP's are also covered under LLP settlement scheme 2020 whereby all LLP's are also given opportunity to file their belated documents without payment of additional fees.

 

Compiled by

CS Ruchi Dawar

ruchi.dawar@gmail.com