COMPANY LAW FRESH START SCHEME- 2020

This scheme is applicable to all the defaulting companies to allow them to make a “Fresh Start”. This Scheme shall come into effect from 01st April, 2020 and end on 30th September, 2020. 

The Scheme is to condone the delay in filing of forms and certain documents with the Registrar, in so far it relates to 

1. charging of Additional Fees and 
2. granting of immunity from launching of Prosecution or 
3. proceedings for imposing Penalty on account of delay associated with filings. 

As per the said Scheme, the Companies have to pay ONLY NORMAL FEES of the forms WITHOUT ANY ADDITIONAL FEES. 

During this time, a company can file all the overdue forms without any additional fees and penalty and thereafter file for dormant status or apply for strike-off, if need be.  

SCHEME IS APPLICABLE ON THE FOLLOWING FORMS: 

This CFSS 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 

Exceptions of forms are:

• SH-7- Increase in Authorized Capital 
• Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9) 

SCHEME SHALL NOT APPLY ON FOLLOWING: 

1. 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. 
2. Where Company has already filed STK-2 for strike off of Company with ROC. 
3. Companies which have amalgamated. 
4. Where application has already been filed by the company for obtaining Dormant Status. 
5. To Vanishing Companies.
6. Where companies marked for CIRP or liquidation. 

EFFECT OF CFSS: 

1. There is no need to pay any additional fees on any return of Company during the Scheme. 
2. Authority shall provide immunity certificate to the Company. 
3. Company shall withdraw any appeal against any prosecution launched. 
4. Registrar of Companies (RoC) shall withdrawal all prosecutions pending regarding such forms/ returns. 
5. ROC shall withdraw the proceedings of adjudication of penalties u/s 454.

FAQs

Q: What is the meaning of defaulting Company? 

A: Defaulting Company means a Company defined under Companies Act, 2013 which has made a default in filling of 

• Any Document, 
• Any Statement, 
• Any Return etc 
• Including Annual Statutory Document

Q: If the company has filed any appeal against any order of prosecution for penalty passed by the competent court or adjudicating authority then can the company avail immunity under this scheme?

A: In this case, the company will first need to withdraw its application of appeal and furnish the proof of withdrawal to avail immunity under this scheme.