ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


In order to enable the companies registered in India to make a fresh start on a clean slate and having received various representations from the stakeholders requesting for the grant of one time opportunity, so as to enable them complete their pending compliances by filing necessary documents in the MCA 21 registry including annual filings without being subject to a higher additional fees on account of any delay under the Scheme is known as COMPANIES FRESH START SCHEME-2020 (CFSS-2020)

Let us understand the Scheme through FAQ:

1.Who can file under this Scheme?

Any defaulting Company is permitted to file due documents under the scheme.

2.What is the time frame for filing pending documents under the scheme?

The scheme shall come into force on the 01.04.2020 and shall remain in force till 30.09.2020.

3. Who is the designated authority?

Registrar of Companies having jurisdiction over the Registered office of the Company.

4.Whether if the adjudicating authority has imposed prosecution or proceedings or issued an order then what is the position?

Immunity from the launch of prosecution or proceedings under the Act (both 1956 and 2013 Act) will be only against the belated filing of the documents

Immunity will not cover any other consequential proceedings wherein interest of the stakeholder is involved.

Immunity shall not be against the matter pending in the Court of law/ Management disputes before the court or tribunal.

In case of appeal is filed:

All appeals against any notice issued or order passed or complaint filed before the competent authority/court for the violation of the provisions in respect of which immunity is sought under the Scheme shall be withdrawn before the application for immunity is made under the Scheme.

In case when appeal could not be filed:

If the last date falls between 01.03.2020-31.05.2020 (both inclusive), a period of 120 additional days shall be allowed for filing appeal before the concerned RD.

During this period so far it is concerned with delay in filing no prosecution shall be initiated against companies and the officers under Section 454(8) of 2013 Act.

In case no appeal is filed:

Immunity shall be provided in case the court has ordered conviction in any matter or an order imposing penalty has been by Adjudicating authority and no appeal is prefered against such order before the scheme has come into the force.

7 FAQs on Companies Fresh Start Scheme(CFSS) 2020

5.What is the relevant form for applying to obtain immunity certificate?

Form CFSS-2020 to be filed electronically, AFTER THE CLOSURE OF THE SCHEME, after the documents are taken on file / record /approved by the Designated Authority but before the EXPIRY OF 6 MONTHS from the closure of the Scheme. No fee is payable for the said form.

6.What are the forms which cannot be filed under this Scheme?

The forms related to increase of share capital and charge forms are excluded from this scheme i.e. SH-7, CHG 1, CHG 4, CHG 8 / CHG 9 etc. 

 

7.Which type of Companies cannot use this Scheme?

  • Companies against which final notice for strike off has been issued by the Designated Authorities. 
  • Companies which have already applied for Strike off through STK 2
  • Companies that are already amalgamated
  • Dormant Companies / Companies which have applied for obtaining Dormant Status
  • Vanishing Companies
  • Companies under CIRP / Liquidation
 

8. Once the due documents are filed with the designated authority can the Companies apply for the Dormant status or Strike off?

Yes, can apply simultaneously to get themselves declared as dormant under Sec 455 (e-form MSC-1 to be filed) / Apply for strike off by filing Form STK-2.

"Loved reading this piece by kavitha jain?
Join CAclubindia's network for Daily Articles, News Updates, Forum Threads, Judgments, Courses for CA/CS/CMA, Professional Courses and MUCH MORE!"




 



Category Corporate Law, Other Articles by - kavitha jain 



Comments


update