The Ministry of Corporate Affairs issued circular dated March 30, 2020 in order to give opportunity to the defaulting companies and to enable them to file the delayed documents in the MCA-21 registry and introduced new scheme namely “ Companies Fresh Start Scheme, 2020 (CFSS- 2020). Only normal fees for filing of documents will be payable under this scheme.
Highlights of the CFSS- 2020
- Starting date of Scheme
The scheme shall come into force on 1.04.2020 and remain in force till 30.09.2020.
- Applicability
The scheme is applicable only for the defaulting company and hence permitted to file belated documents which were due for filing.
- Payment of Fees
Every defaulting company shall be required to pay normal fees as prescribed under the Companies (Registration Offices and Fees) Rules,2014 on the date of filing of each belated document and no additional fee shall be payable.
- Withdrawal of appeal in case of prosecution
If the defaulting company has filed any appeal against any notice issued or complaint filed before a competent court in respect of which application is made under this scheme, then the applicant shall before filing an application, withdraw the appeal and furnish proof of such withdrawal along with application.
- Application for issue of immunity in respect of documents filed
The application for seeking immunity in respect of belated documents filed under this scheme may be made electronically in the Form CFSS-2020 after closure of the scheme and after the documents are taken on file, or on record or approved by the Designated authority as the case may be but not after the expiry of six months from the date of closure of scheme.
And this is not applicable in case any appeal pending before the court of law and in case of management disputes of the company pending before any court of law or tribunal.
- Scheme not to apply in certain cases:
- To companies against which action for final notice for striking off the name u/s 248 of the Companies Act has already initiated by the Designated authority.
- Where any application has already been filed by the companies for action of striking off the name of the company
- To companies which have amalgamated under a scheme of arrangement or compromise
- Where applications have already been filed for obtaining Dormant Status under section 455 of Companies Act
- To vanishing companies
- Where any increase in authorized capital is involved (Form SH-7) and also charge related documents (CHG-1, CHG-4, CHG8 and CHG-9)
- Also the strict action shall be taken under the Act against the companies who have not availed this Scheme and are in default in filing these documents in a timely manner.