Companies Fresh Start Scheme 2020
File all pending returns without any penalty
Regularize your company filings and avoid penalties with this scheme.
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Companies Fresh Start Scheme 2020
The Ministry of Corporate Affairs (MCA) has launched the “Companies Fresh Start Scheme 2020” to allow companies to rectify filing defaults—regardless of how long they have been pending—and restart as fully compliant entities. This scheme is similar to the LLP Settlement Scheme, 2020, which offered a one-time chance for LLPs to regularize overdue filings without incurring penalties. As the name implies, the scheme offers a one-time opportunity for companies to conduct due diligence and identify any missed filings of documents, statements, or returns with the Registrar of Companies (ROC).
Timeline and Applicability
Applicability
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.
Additional fee and 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. 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 the Scheme
| Form Name | Description |
|---|---|
| INC - 20A | Declaration for Commencement of Business |
| AOC - 4 | 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 |
| Form - 66 | Compliance Certificate from CS |
| DPT - 3 | Return of Deposits |
This scheme is not applicable to the following
FAQ's
1. What is the purpose of the scheme?
The purpose of the Companies Fresh Start Scheme is to reduce the compliance burden on the corporates by giving an opportunity to all the companies who have defaulted in the past with respect to any ROC Filing. This is an incredible amnesty scheme by MCA which allows a defaulting/inactive company to file all pending compliance related returns and documents in the MCA-21 portal without any heavy additional fee and penalty.
2. What is the benefit of the scheme?
There are two major advantages of this scheme, first it allows a window of opportunity to comply with the legal provisions of the Companies Act, 2013. Secondly there is complete waiver of the additional fee, which is really a very big benefit to the corporates. Apart from the two benefits the company and its directors are gransted an immunity from prosecution.
3. What is the timeline of the scheme?
The timeline of the scheme gives a window of six month from 1st April to 30the September 2020, within which the company should file all its pending returns and file the form for immunity must be filed after close of the said window allowed for filing.
4. What kind of companies can avail the benefits of this scheme?
This scheme is available to all active companies, irrespective of its size and type. Any company which has ever defaulted in filing a document, statement or return to the registrar of companies can take benefits of this scheme.
5. Can the directors also file their pending DIN KYC Forms under this Scheme?
As per the MCA, all the DIN which has been marked as Deactivated due to non filing of the DIR-3 KYC has been marked as Active and the directors can now first file their DIR-3KYC and then they may file any belated return of the company