Everything You Need To Know About Companies Fresh Start Scheme 2020

Recently the Ministry of Corporate Affairs has introduced a new scheme called Companies Fresh Start Scheme 2020 (CFSS-2020). The scheme's motive is that all the companies/LLP’s who have pending documents to file they have an opportunity to file it without paying any additional fee or penalties.

What is the Companies Fresh Start Scheme 2020?

 

The Ministry of Corporate Affairs has provided an opportunity to all the corporate bodies (Companies and LLPs) that have pending filings to “Fresh Start”. Without paying any additional fee / Penalties.

They have issued a General Circular No 12/2020 dated 30th March 2020.

Who can take the benefits of the Companies Fresh Start Scheme 2020?

This Scheme is for Defaulting Companies who have failed to file the Forms, Returns, Statement, or Documents with the Ministry of Corporate Affairs.

All the corporate bodies including Public Limited, Private Limited, and LLP’s can take the benefits of Companies Fresh Start Scheme 2020.

What are the Benefits of Companies Fresh Start Scheme 2020?

Benefits to companies and LLP’s

  • Full Waiver for Payment of Additional Fees/ Penalty.
  • Immunity from the launch of prosecution.
  • Immunity from proceedings for imposing a penalty.
  • Immunity certificate will be provided once the pending filings are completed.

What is the meaning and effect of an immunity certificate?

 

  1. ROC shall withdrawal all the prosecution pending regarding such forms/ returns.
  2. ROC shall withdraw the proceedings of adjudication of penalties u/s 454.
  3. Authority shall provide immunity certificate to Company based on the declaration made in Form CFSS –    2020 (Form CFSS – 2020 has to be filed within Six Months from the closure of the Scheme, there shall not be any fee payable on this form)
  4. The company has to withdraw of appeal against any prosecution if any filed by them.

Which forms can be filed in the Companies fresh Start Scheme?

 

As per this Scheme Companies have to pay ONLY NORMAL FEES of the forms WITHOUT ANY ADDITIONAL FEES except below mention forms:

  1. Increase in authorized Share capital i.e. Form SH – 7
  2. Charge related documents i.e. Form CHG – 1, Form CHG – 4, Form CHG – 8, Form CHG – 9.

Which companies cannot take the benefits of Companies Fresh Start Scheme 2020?

 

The scheme shall not apply on Following:

  1. To company against which action for final notice for striking off the name u/s 248 of the act has already been initiated by the Designated Authority.
  2. Where Company has already filed STK-2 for strike off of Company with ROC.
  3. Companies that have amalgamated.
  4. Whether the application has already been filed for obtaining Dormant Status.
  5. To Vanishing Companies.
  6. Where companies marked for CIRP or Liquidation.

Is there any time period of Companies Fresh Start Scheme 2020?

 

The Scheme starts from 01st April 2020 and ends on 30th September 2020. (Pending documents can be filed in this period)

Can I close my company/LLP after filing all the pending filings?

 

Yes, after completion of all pending filings, an individual can file for closure or put the company/LLP in the dormant stage.

What are the documents required for the Companies Fresh Start Scheme?

Scanned copies of the following documents are required.

Financial Data - Annual tally data & financial statements.

Bank Statements - Company’s Bank Statement for the relevant financial year.

Digital Signature Certificate - Digital Signature of authorized Directors or Signatory.

Details of Pending prosecution - Details in respect of prosecution(s) pending against the company & its officers in respect of belated documents filed under the scheme which requires withdrawal by the Registrar.

Proof of Appeal Withdrawal - Proof of withdrawal of any appeal(s) against any notice issued or complaint filed or any order passed by a court or by adjudicating authority.

 

Can Wazzeer help us complete all the Filings and get the immunity certificate?

 

Yes, Wazzer can help you complete all the pending filings and get your company's filings up to date also we will be able to help you get the immunity certificate for your company. reach out to us at enquire@wazzeer.com or Contact us.

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