Company Law Fresh Start Scheme- 2020 - Series 572


Company Law Fresh Start


Scheme- 2020
(Step Towards ‘Compliance”)
Short Summary:
A step by MCA to allow corporates to make a “Fresh Start”. A circular issued by MCA on 30.03.2020 for the benefit of all Companies.

This Scheme Shall be start from 01st April, 2020 and end on 30th September, 2020.

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 Scheme Companies have to pay ONLY NORMAL FEES of the forms WITHOUT ANY ADDITIONAL FEES.

Scheme shall apply on Following forms:
This CFSS is applicable on below mentioned forms including:
v Annual Return- MGT-7
v Financial statement- AOC-4
v 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)

Scheme 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.
g)   Following Forms:
-      SH-7 for increase in authorized capital
-      Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9)


Effect of CFSS:
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.



QUICK BITES
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 – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com). ‘

Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION

Comments

  1. can strikeoff company can use this scheme ? after doing so whether director disqualification for 5 years will be reersed ?

    ReplyDelete
  2. ITs specifically mentioned in editorial that strike off company cant take benefit of this scheme...

    If they want to take benefit let them get revived from nclt

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  3. We got a adjudication order on February 19 2020 because of the late filing INC 20 A do we need to file a appeal to RD in order to get the benefit of this scheme

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