Companies Fresh Start Scheme 2020: A Comprehensive Guide to MCA’s One-Time Filing Opportunity

http://mca.gov.in/Ministry/pdf/Circular12_30032020.pdf

The Ministry of Corporate Affairs issued Companies Fresh Start Scheme 2020 vide Circular 12/2020 dt 30.3.2020 which applies both public and private companies incorporated under Co Act 1956/2013.

The salient features are as follows:-

(1) Permits filing all pending Returns, Statements, Documents for any number of years.

(2) It shall come into operation on 1.4.2020 and remain effective up to 30th Sep 2020.

(3) It applies to all companies both public or private who failed to file all returns statements or Documents including Annual Return remain for any number of years as on date of filing.

(4) Only normal fees as prevailing on the date of filing shall be payable.

(5)No late fee no penalty no prosecution only normal fees payable.

(6) Prosecution if any pending shall be disposed off after payment

(7) Scheme not apply to following companies:-

i. Companies against whom final notice under Section 248 has been given by ROC for striking off;

ii. Where any application has been filed by the companies for action of striking off name of the company from the Registrar of Companies.

iii. to companies which have already filed for obtaining dormant status under Section 455 before this scheme;

iv. to companies which have amalgamated under a scheme of arrangement or compromise under the act;

v. to vanishing companies;

vi. Where any increase in authorized capital is involved and also charge related documents.

( Companies whose name struck off cannot avail this scheme and have to get their name restored;

(9) Defaulting Inactive Companies by filing due documents under CFSS-2020, can avail this scheme for the purpose of-

(i) getting themselves dormant under Section 455; and

(ii) getting their name struck off

(10) After payment of normal fees and documents return statement is taken on record, an application shall be filed electronically (without any fees) for obtaining Immunity Certificate but it shall not be filed beyond six month from the date of expiry of scheme.

(11)Scheme grants immunity against filing of forms returns and documents but not against any punitive action being done by the company for which suitable can be taken by ROC.

This is golden opportunity to file all pending Returns Annual Accounts, Statements including all pending Annual Returns pending for any number of years.

This Scheme is a one-time waiver of additional filing fees for delayed filings by the Companies with the Registrar of Companies during the currency of the scheme i.e. 1.04.2020 to 30.09.2020.

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