Companies Fresh Start Scheme, 2020 (CFSS-2020)
Under The
Companies Act, 2013, All companies are required to make annual statutory
compliance by filing the Annual Return and Financial Statements. Apart from
that, various other statements, documents, returns etc. are required to be
filed with MCA. However there are many companies who have defaulted in
compliances under the Companies Act, 2013 and filing with ROC/ MCA.
Ministry
of Corporate Affairs, Government of India, on receipt of representations from
various stakeholders, vide General Circular No. 12/2020 dated
30/03/2020 has given an opportunity to file the belated documents with MCA
and complete their pending compliances.
Details
of the Scheme are as follows:
1)
Name of the Scheme
Companies Fresh Start Scheme,
2020 (CFSS-2020)
2)
Time period of Scheme
The scheme shall be available
w.e.f. 01-04-2020 and shall remain in force till 30-09-2020.
3)
Few Definitions for the purpose of this
scheme:
a)
“Act” means the Companies Act, 2013 and Companies Act, 1956 wherever
applicable;
b)
Companies means a company as defined under Companies Act, 2013;
c)
“Defaulting Company” means a company defined under the Companies
Act, 2013 and which has made default in filing of any of the documents,
statement, returns etc. including annual statutory documents on the MCA-21
registry;
d)
“Designated Authority” means the Registrar of Companies having
Jurisdiction over the registered office of the company;
e)
“Immunity Certificate” means the certificate referred to in
sub-paragraph [viii] of paragraph 6 of the scheme
f)
“Inactive Company” means a company as defined in Explanation (i)
to sub-section 1 of section 455(1) of the Companies Act, 2013
4)
Applicability of the Scheme
Any defaulting company is
permitted to file belated documents which were due for filing on any given date
in accordance with the provisions of this scheme
5)
Filing Fees for Belated Documents
Normal fees as applicable as on
date shall required to be paid for filing of such documents and no
additional fees shall be payable thereon.
6)
For Inactive Company
The defaulting companies while
filing due documents under CFSS, 2020 can simultaneously file either
Ø to get
their companies declared as “Dormant Company” by filing a simple
application at a normal fee. This will help inactive companies to remain on the
register of the companies with minimal compliance requirements. They need to
file MSC-1 with nominal fee on said form.
Or,
Ø file STK-2 for striking off by paying fee
payable for STK-2
7)
Things to be Done before filing of
application for immunity certificate
The Company has to withdraw
appeal and furnish proof of such withdrawal along with the application for
granting immunity certificate in cases where appeal was filed for non-compliances
of provisions of the Act related to filing of statutory filing.
8)
Filing of Application for issue of Immunity
Certificate
Application for seeking Immunity from
launch of prosecution or proceedings for imposing penalty for delay in filing
of documents with MCA21 registry is required to be filed in Form CFSS-2020.
This form can be filed before
expiry of 6 months from the closure of the Scheme. There is no filing
fee for this form.
9)
Immunity Shall not be available in case
Ø Where any
appeal is pending in the matter of any appeal pending before the Court of Law and
in case of management disputes of the company pending before any court of law
or tribunal
Ø Where any
court has ordered conviction in any manner or an order imposing penalty has
been passed by an adjudicating authority under the Act, and no appeal is
preferred before this scheme has come into force.
10)Order granting Immunity
Certificate
Immunity certificate granting
immunity from penalty and prosecution shall be granted by Designated Authority
on the basis of declaration filed in form CFSS, 2020.
11)Effect of Immunity
After granting the immunity, the
Designated Authority shall withdraw the prosecution pending before the
concerned court and proceedings of adjudication of penalties under section 454
of the Act. Defaults against which immunity was granted shall be deemed to have
completed without any further action on the part of the Designated Authority
12) Scheme not applicable in
certain cases
a)
Companies against which final notice of strike off has already
been initiated
b)
Where application has already been filed for strike off of the
company
c)
Companies which have been amalgamated
d)
Where application has been filed for dormant status under section
455 of the Act
e)
To vanishing companies
f)
Where any increase in authorised capital is involved and also
charge documents
DISCLAIMER
The material and information contained in this blog are for general information purpose only. Though we have made every efforts to make our interpretation correctly, we do not make representation either express or implied about the completeness or correctness of the subject matter. Under no circumstances the author is not responsible / liable for any loss or damage caused to anyone due to any mistake / error / omissions.
Companies Fresh Start Scheme, 2020 (CFSS-2020)
Under The
Companies Act, 2013, All companies are required to make annual statutory
compliance by filing the Annual Return and Financial Statements. Apart from
that, various other statements, documents, returns etc. are required to be
filed with MCA. However there are many companies who have defaulted in
compliances under the Companies Act, 2013 and filing with ROC/ MCA.
Ministry
of Corporate Affairs, Government of India, on receipt of representations from
various stakeholders, vide General Circular No. 12/2020 dated
30/03/2020 has given an opportunity to file the belated documents with MCA
and complete their pending compliances.
Details
of the Scheme are as follows:
1)
Name of the Scheme
Companies Fresh Start Scheme,
2020 (CFSS-2020)
2)
Time period of Scheme
The scheme shall be available
w.e.f. 01-04-2020 and shall remain in force till 30-09-2020.
3)
Few Definitions for the purpose of this
scheme:
a)
“Act” means the Companies Act, 2013 and Companies Act, 1956 wherever
applicable;
b)
Companies means a company as defined under Companies Act, 2013;
c)
“Defaulting Company” means a company defined under the Companies
Act, 2013 and which has made default in filing of any of the documents,
statement, returns etc. including annual statutory documents on the MCA-21
registry;
d)
“Designated Authority” means the Registrar of Companies having
Jurisdiction over the registered office of the company;
e)
“Immunity Certificate” means the certificate referred to in
sub-paragraph [viii] of paragraph 6 of the scheme
f)
“Inactive Company” means a company as defined in Explanation (i)
to sub-section 1 of section 455(1) of the Companies Act, 2013
4)
Applicability of the Scheme
Any defaulting company is
permitted to file belated documents which were due for filing on any given date
in accordance with the provisions of this scheme
5)
Filing Fees for Belated Documents
Normal fees as applicable as on
date shall required to be paid for filing of such documents and no
additional fees shall be payable thereon.
6)
For Inactive Company
The defaulting companies while
filing due documents under CFSS, 2020 can simultaneously file either
Ø to get
their companies declared as “Dormant Company” by filing a simple
application at a normal fee. This will help inactive companies to remain on the
register of the companies with minimal compliance requirements. They need to
file MSC-1 with nominal fee on said form.
Or,
Ø file STK-2 for striking off by paying fee
payable for STK-2
7)
Things to be Done before filing of
application for immunity certificate
The Company has to withdraw
appeal and furnish proof of such withdrawal along with the application for
granting immunity certificate in cases where appeal was filed for non-compliances
of provisions of the Act related to filing of statutory filing.
8)
Filing of Application for issue of Immunity
Certificate
Application for seeking Immunity from
launch of prosecution or proceedings for imposing penalty for delay in filing
of documents with MCA21 registry is required to be filed in Form CFSS-2020.
This form can be filed before
expiry of 6 months from the closure of the Scheme. There is no filing
fee for this form.
9)
Immunity Shall not be available in case
Ø Where any
appeal is pending in the matter of any appeal pending before the Court of Law and
in case of management disputes of the company pending before any court of law
or tribunal
Ø Where any
court has ordered conviction in any manner or an order imposing penalty has
been passed by an adjudicating authority under the Act, and no appeal is
preferred before this scheme has come into force.
10)Order granting Immunity
Certificate
Immunity certificate granting
immunity from penalty and prosecution shall be granted by Designated Authority
on the basis of declaration filed in form CFSS, 2020.
11)Effect of Immunity
After granting the immunity, the
Designated Authority shall withdraw the prosecution pending before the
concerned court and proceedings of adjudication of penalties under section 454
of the Act. Defaults against which immunity was granted shall be deemed to have
completed without any further action on the part of the Designated Authority
12) Scheme not applicable in
certain cases
a)
Companies against which final notice of strike off has already
been initiated
b)
Where application has already been filed for strike off of the
company
c)
Companies which have been amalgamated
d)
Where application has been filed for dormant status under section
455 of the Act
e)
To vanishing companies
f)
Where any increase in authorised capital is involved and also
charge documents
DISCLAIMER
The material and information contained in this blog are for general information purpose only. Though we have made every efforts to make our interpretation correctly, we do not make representation either express or implied about the completeness or correctness of the subject matter. Under no circumstances the author is not responsible / liable for any loss or damage caused to anyone due to any mistake / error / omissions.
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