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Summarized features of Companies Fresh Start Scheme, 2020

Summarized features of Companies Fresh Start Scheme, 2020

Summarized features of the scheme - The Ministry has issued a general circular no 12/2020 dated. 30th March 2020 to revive the non -compliant companies. Under this scheme, the government has given one time opportunity to non – compliant companies to make a fresh start on a clean slate. This scheme enables the companies to complete the pending compliance by filing necessary documents including annual return without any additional late fees on account of delay. Only the normal filing fees will be payable for filing the forms. This scheme will also grant immunity from launching prosecution or proceeding for imposing a penalty on account of delay associated with certain filings. This scheme also gives an opportunity to inactive companies to get the companies declared as “Dormant Companies” under section 455 of the Act by filing a simple application at a normal fee. The Summarized features of the scheme are as hereunder:

Window Timing ·         Opening Date – 1st April 2020 ·         Closing Date – 30th September 2020
Applicability Any defaulting company is permitted to file the belated return/Forms in accordance with the provision of this scheme. The defaulting companies include all forms of the company (Public, Private, OPC, Foreign etc.)
Default Covered Only on account of delay in filing (Other defaults are not covered in this scheme) by the active company.
Options for Inactive Companies ·         Option 1st: Apply for getting themselves Dormant under Section 455 (e-Form MSC -1)                          OR ·         Option 2nd: Apply themselves for getting their name struck off. ( e-Form STK-2)
Strike Off Company Companies whose name is already struck off cannot avail of this scheme to get their name stored.
Manner of Payment of normal fees for filing of belated documents and seeking immunity under the scheme Immunity from the launch of prosecution is allowed only on account of delay in filing of forms not on accounts of other defaults.
Withdrawal of appeal against any prosecution launched or the proceedings for imposing penalties initiated The defaulting company may file an application for the withdrawal of proceeding if any case related to delay filing is under trial with the adjudicating authority.
Fees ·         Only Normal Fees Payable ·         No Additional Late Fees Payable
Note: The company wishing to opt for immunity under this scheme has to make an application for the issue of Immunity Certificate under the Companies Fresh Start Scheme (CFSS), 2020. 
 

 

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