Company Fresh Start Scheme (CFSS) 2020

Companies Fresh Start Scheme, 2020.

In order to facilitate the companies registered in India to make a fresh start on a clean slate, the Ministry of Corporate Affairs  has decided introduced Companies Fresh Start Scheme, 2020.

Annual Filings by Companies

Companies Act, 2013 requires all companies to make annual statutory compliance by filing the Annual Return and Financial Statements. Apart from this, various other statements, documents, returns, etc are required to be filed on the MCA21 electronic registry within prescribed time limits. Delay in filing these returns will attract penalty fine and penal actions asper Companies Act.

One Time Opportunity

In order to give an opportunity to the defaulting companies and to enable them to file the belated documents, MCA has introduced "Companies Fresh Start Scheme, 2020 (CFSS-2020) for condoning the delay in filing the returns  with the Registrar, insofar as it relates to charging of additional fees, and granting of   immunity from launching or prosecution or imposing penalty.

Fee Payable for CFSS

Only normal fees for  filing of documents in the MCA-21 registry will be payable in such case  during the currency or CFSS-2020. There will not be any additional fee for any documents.

Every defaulting company  shall be required to pay normal fee as prescribed under the Companies (Registration Offices and FCC) Rules, 2014 on the date of filing of each belated document and no additional fee shall be payable.

Applicability of CFSS

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:

Immunity from the launch of prosecution or proceedings for imposing penalty shall be provided only to the extent such prosecution or the proceedings for imposing penalty under the Act pertain to any delay associated with the filings of belated  documents.

Application for issue of immunity under the CFSS

An application for seeking immunity in respect of belated documents filed under the Scheme in the Form CFSS-2020, after closure of the Scheme and after the document(s) are taken on file, or on record or approved by the Designated authority as the case may be but not after the expiry of six months from the date of closure or the Scheme. There is no fee payable on this Form.

Scheme not to apply

This scheme shall not apply

• * to companies against which action for final notice for striking off the name u/s 248 of the Act (previously section 560 of Companies Act. 195j has already been initiated by the ROC.
• * where any application has already been filed by the companies for action of striking off the name of the company from the register of companies;
• * to companies which have amalgamated under a scheme of arrangement or compromise under the Act;
• * where applications have already been filed for obtaining Dormant Status under section 455 of the Act before this Scheme
• * to vanishing companies;
• * Where any increase in authorized capital is involved (Form SH7)
• * also charge related documents (CHG-I, CHG-4. CHG-8 and CHG-9);