Companies Fresh Start Scheme, 2020 (CFSS-2020)

Companies Fresh Start Scheme, 2020 (CFSS-2020)

Latest update- The due date for the Companies Fresh Start Scheme, 2020 (CFSS-2020) is extended via Circular no. 30/2020 to 31/12/2020.

Central Government vide General Circular No. 12/2020 dated 30/03/2020 introduced a Scheme namely Companies Fresh Start Scheme, 2020 (CFSS-2020).

Benefits

 It provides an opportunity for companies to make good any filling related default by paying normal fees only, irrespective of the duration of default.
 It contains a provision for giving immunity from the launch of prosecution and proceeding, including against the imposition of penalties for a late submission.
 Allowed a period of 120 additional days from such last date, for filling appeal before Concerned Regional Directors u/s 454(6) against the imposition of penalties,
if last date for filling appeal fall between 01/03/2020 to 31/05/2020.
 While filling due documents, defaulting inactive companies may get themselves declared as dormant company by filling e-form MSC-1 or apply for striking off the name by filling e-form STK-2.
 DIN holder whose DIN marked as “Deactivated” due to non-filling of DIR 3KYC and those companies whose compliance status has been marked as “Active Not Compliant” due to non-filling of ACTIVE form become compliant without any filing fees of INR 5000/10,000 respectively.

Period

 From 1st April 2020 and ending on 30th September 2020.

Non Applicability of scheme

 Companies against which action for final notice for striking off the name has been initiated
 Where application already filled by companies for striking of the name
 Amalgamated Companies
 Where application filled by companies for obtaining dormant status
 Vanishing Companies
 Form SH-7 for the increase in authorized capital
 Form CHG-1, CHG-4, CHG-8, and CHG-9 for charge related documents

Certificate of Immunity

After filling an application, within 6 months after the expiry of the scheme for immunity electronically in the form CFSS-2020, a Certificate of immunity will be issued by ROC.

Conclusion

ROC shall take necessary action against companies who have not availed this scheme and are in default.

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