Companies Fresh Start Scheme, 2020 for defaulting Companies

With a view to give an opportunity for the defaulting companies and to enable them to File the belated documents in the MCA 21 registry, the central government in exercise of powers conferred under the Companies Act 2013 has decided to introduce scheme namely Companies Fresh Start scheme, 2020 ( CFSS – 2020) Condoning the delay in filing the aforementioned documents with the Registrar, insofar as it relates to charging of additional fees end granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings. Only normal fees for filing of documents in the MCA – 21 registry will be payable in such case during the currency of CFSS-2020.

In addition, the scheme gives an opportunity to inactive companies to get their companies declared as “dormant company’ under section 455 of the Act by filing a simple application at a normal fee. The same provision enables inactive companies to remain on the register of companies with minimal compliance requirements.

1. Applicability of Scheme:
The scheme shall come into force on the April 1, 2020 and shell remain in force till September 30, 2020.

2. Benefit of scheme available to Defaulting Cos.: This Scheme is only available to defaulting companies so that they could file belated return which were due for filing. Defaulting companies which defaulted in filing of any documents, statements, returns, etc.

3. Scheme Not to apply in certain cases.

The Scheme shall not apply: –
A) To companies against which final notice for striking off the name u/s. 248 of the Act already initiated by designated authority.

B) Application already been filed by the companies for action of striking off the name of the company.

C) Companies which have amalgamated under the scheme of arrangement or compromise under the Act.

D) Application filed for obtaining dormant status under 455 of the Act.

E) To vanishing companies

F) Increase in authorized capital is involved and also charge related documents

4. Immunity against prosecution: This Scheme provides immunity to companies in relation to prosecution or proceeding for imposing an additional penalty for not filing of belated documents. However, this Scheme doesn’t provide immunity on any other consequential proceedings including proceeding involving the interest of its directors or key managerial personnel etc.

5. Conversion of Inactive to dormant company: The Scheme also provides an opportunity to the inactive company to convert into a dormant company under section 455 of Company’s act, 2013 by filing form MSC-1 with nominal fees & help the inactive companies to remain on ROCs register with minimum compliance requirement.

Relevant MCA circular can be found here-

 

Completed various post qualification courses hosted by Institute of Chartered Accountants of India (ICAI) such as  Information Systems Audit (DISA)  Concurrent Audit of Banks  Goods & Services Tax  Blockchain and other emerging technologies  Primarily handling Indirect Taxation vertical with focus on GST.  Proficient in handling litigation in legacy taxes such as MVAT & CST upto Maharashtra Sales Tax Tribunal stage.  Inventory audit of listed companies throughout various locations in Maharashtra.  Management consultancy and Tax planning services.  Advisory and consultancy to Startups on cash flow management, funding sources  Retirement and Inheritance planning, Estate management consultancy.  Experience in Capital gain taxation and tax planning  Specialization in E-commerce retail segment  Risk advisory  Bank Concurrent Audit Experience