Company Fresh Start Scheme

Companies Fresh Start Scheme

File all pending returns without any penalty

The central government has launched the Companies Fresh Start Scheme with effect from 1st April 2020 to allow a defaulting or inactive company to file any document, statement, returns including annual returns to the Registrar of Companies of any period without payment of any additional fee and penalty. This is a golden opportunity to file all old & pending returns of your company without any additional fee and penalty.

Frankly speaking, it is an incredible scheme introduced by the Ministry of Corporate Affairs (MCA) in India, which gives a one-time relaxation from any additional fee, penalty or prosecution under the companies act with respect to pending returns of any kind by a company. The scheme is effective from 1st April 2020 and shall continue until 30th September 2020.

Timeline & Applicability of The Companies Fresh Start Scheme, 2020 (CFSS-2020)

The new scheme is time-bound and is available within its well-defined timeline. This section shall deal with the deadlines and general applicability of CFSS-2020 Scheme

Start Of The CFSS 2020 Scheme

The Companies Fresh Start Scheme, 2020 is already notified by way of a General Circular No. 12/2020 on 30th March 2020 and the Scheme Shall Come into Force on 01st April 2020

Applicability Of The Scheme

The scheme is available to all defaulting companies which has not filed any form to the ROC within its due date and thus has defaulted under the Companies Act, 2013. This scheme is available to all companies irrespective of its type, hence it is available to every Private Limited Company, One Person Company (OPC), Small Company, Section -8 Company, Nidhi Company, Producer Company and all Public Limited Companies

All Additional Fee & Penalty Waived Off

Every document, statement or returns as prescribed under the companies act have a prescribed due date. When a company fails to file the ROC Forms/Returns the same can be filed with an additional fee as per section 403 of the act. The additional fee for default in filing the annual return is Rs. 100 per day. For example, if a company has delayed the filing by six months then the additional fee shall be more than 18,000 for one form only. Under this scheme, the additional fee, as well as penalty, has been completely waived off.

File All Pending Returns Of Your Company

If your company has defaulted in filing any ROC Return, don’t miss this opportunity and take maximum advantage of it. Act fast and file the pending returns with normal ROC Filing Fee. We can help you to check ROC Due Diligence of your company without any charges.

File An Application For Immunity From Prosecution

A Company after filing all its pending forms, documents, statement, and returns need to make an application in the prescribed form within six months of the close of this scheme. It means the last date of filing an immunity application under CFSS 2020 will be 31st March 2021.

Scheme Ends on 30th September 2020

As per General Circular No 12/2020, the Company Fresh Start Scheme shall come to an end on 30th September 2020. After the scheme is closed the fee for filing shall return to its ordinary form as per section 403 of the Companies Act.

Eligible Forms Under Company Fresh Start Scheme 2020

All forms are eligible except those which have been specifically marked as Not Allowed. Please see below section
  • INC – 20A : Declaration For Commencement of Business
  • AOC – A : To File Balance Sheet (Financial Statement)
  • MGT – 7 : Annual Return Of The Company
  • ADT – 1 : Return on Auditor Appointment
  • ADT – 3 : Return on Auditor Resignation
  • DIR – 3 KYC : Director KYC
  • INC – 22A : Company KYC (Active)
  • DIR – 11 : Notice of Resignation by a Director
  • DIR – 12 : Director Or KMP Appointment Or Changes Thereof
  • 20 – B : Annual Return under The Companies Act, 1956
  • 23 – AC : Filing of Balance Sheet under The Companies Act, 1956
  • Form – 66 : Compliance Certificate From CS
  • DPT – 3 : Return of Deposits
  • Others : All Other Forms Unless Marked as Not Allowed

Scheme Will Not Apply in Following Cases

  • In Case Application For Closure Already Filed
  • In Case Action For Closure Is Already Initiated
  • Companies Under Amalgamation
  • If application for Dormant Status is already filed
  • In case of Vanishing Company
  • Forms relating to Increase of Capital & Charges

Stepwise Process To Use CFSS-2020 by a Defaulting Company.

  • Step – 1: Due Diligence Check  Through the process of due diligence, you shall discover all the defaults of the past and can take remedial steps to correct it. The CFSS-2020 scheme gives a one time opportunity to come clean and start afresh. We have a Complimentary Service to do Due Diligence Limited to ROC.
  • Step – 2: File All Pending Returns  Once you know what are the forms, documents, statements, and returns, which have to be submitted to ROC, get it done. We have a dedicated team of Company Secretaries and We can help you to file all your pending returns on a reasonable professional fee. Please note that 30th September is the last date to file pending forms under CFSS-2020
  • Step – 3: Wait for approval of the ROC  After you have filed all your pending forms, wait for its approval by the ROC. The annual returns like AOC-4, MGT-7, etc get approved instantly based on the professional attestation. However, forms like MGT-14 may take some time in getting approved.
  • Step – 4: File Immunity Form in CFSS-2020 Once all filed forms have been approved, you need to file an application for issuance of the Immunity Certificate under CFSS-2020. The application for grant of immunity can be filed only after the Scheme is over and all the pending forms have been filed. However, the maximum time within which the immunity application is to be filed is within six months of scheme closure. I.e. The Last Date is 30th March 2021.
  • Step – 5: Wait for approval of the CFSS-2020 Well, you have done all things which were required under the Companies Fresh Start Scheme, 2020. Wait for the approval of your immunity application. In case there is any resubmission required or the ROC seeks further information, please do provide that promptly, remain vigilant until it is approved.
  • Step – 6 : Move ahead in Life Well, since now all pending compliance of the companies Act is over, relax and take appropriate steps to do the complete due diligence of your business. You may do the following