Company Fresh Start Scheme 2020
In amid of COVID-19, Central Government and Ministry of Corporate affairs has given big relief to all defaulting companies and given a chance to correct their default by filing pending annual returns and financial statements with ROC without Any Additional Fees.
This Scheme is called Company Fresh Start Scheme 2020. Ministry of Corporate Affairs has been very strict since last two years against the companies who are not filing their Annual Returns and Financial Statements and struck off around 3 lacs companies and levied heavy late fees and taken action against companies and directors of these companies.
In resultant, these company have been marked as Active Non Compliant Company and their director have been disqualified.
Now All these Active Non-compliant Company have been given a chance to revive themselves on the presentation of various stakeholders of companies.
This Scheme is applicable from 1st April 2020 to 30th September 2020. So All Defaulting Company and Active Non-Compliant Company can file their Annual Returns and Financial statements and File other prescribed forms under this scheme without any late fees or additional Fees except two forms.
Forms that can be Filed under this scheme :
- Annual Return (MGT-7)
- Financial Statements (AOC-4)
EVENT BASED FILING
- INC-22A (Active Company Tagging Identities & Verification (ACTIVE)
- INC-20A (Declaration for Commencement of Business)
- PAS-3 (Return of Allotment)
- ADT-1 (Appointment of Auditor)
- MGT-14 (Filing of Resolutions and Agreements to the Registrar)
- DIR-12 (Particulars of Appointment of Directors and Key Managerial person and changes among them
Exception Forms (On which this scheme is not applicable)
- SH-7 (Form for Increase in Authorised Share Capital)
- Charge Related Documents( CHG-1, CHG-4, CHG-8, CHG-9)
Benefit of this scheme:
- Waiver of all additional and late fees on all forms
- Granting of Immunity from all prosecution and proceedings of penalties
- MCA shall withdraw all proceedings against companies and directors under section 454.
Procedure to Avail benefit under this scheme :
- Defaulting companies have to file all overdue and pending returns and have to file all pending forms in statutory forms prescribed under the act with applicable Normal fees payable under section 403 of Companies Act, 2013 read with Companies (Registration office and Fees) Rules 2014 All these forms have to filed between 1st April 2020 to 30th September 2020.
- After filing of these forms Companies shall file FORM CFSB-2020 form. There is no fees for filing of this Form. This Form has to be file within 6 months of closure of this scheme.
- The Form CFSB-2020 is self declaration based form. On Filing this form, ROC shall provide Immunity Certificate.
- Inactive Companies can apply for this scheme to get themselves declared as Dormant Company under section 455 of the Companies Act, 2013 by filing e-form MSC-1 at a normal fee on said form; or
- for striking off the name of the company by filing e-Form STK-2 by paying the fee payable on form STK-2.