Filing Under Companies Fresh Start Scheme

Filing Under Companies Fresh Start Scheme: Status from Non-Compliant to Active Compliant for Private Limited Company.

As we all are aware of the unpredictable situations caused by the global pandemic Covid-19. The Ministry of Corporate Affairs has introduced a new scheme known as the Companies Fresh Start Scheme, 2020.

Additionally, MCA has also given the LLP’s financial relief with regard to Compliances considering the current situations by introducing LLP Settlement Scheme, 2020.

Earlier the Companies Fresh Start Scheme was applicable from 1st April 2020 to 30th September 2020 but now considering the prevailing situations it has been extended till 31st December 2020. Everybody knows that a scheme has been introduced by MCA but not aware of the practicalities of the Compliances to be done for making the status of an Active Non-Compliant Company to Active Compliant:

For example, Suppose a Private Limited Company was incorporated in October 2015 and it has not done any compliances since it received its Certificate of Incorporation. Now what compliances the company has to do to make it Active Compliant.

Here are the steps to be followed:

• File Form DIR-3 KYC for re-activation of the status of DIN of all the directors. (If deactivated)
• Prepare Minutes of the first board meeting that would have been done within 30 days of the incorporation of the Company.
• File Inc-20A for the commencement of the business of the Company. {Attachment: Proof of subscriber capital deposited by bank or cash.}
• File form ADT-1 for the appointment of First Auditor of the Company to be ratified in the first Annual General Meeting. {Attachment: Extract of Resolution, Intimation to the auditor, Consent of Auditor and Auditor Appointment Intimation}
• Prepare documents for Annual Filing of the Company i.e. Consider First Financial Year of the Company. (i.e. March 2016)
• File Form AOC-4 (within 30 days of AGM) and MGT-7 (within 60 days of AGM) for the year ending March 2016
• Documents to be prepared: AGM Notice, List of Shareholders, Director’s Report, and Mgt-9.
• Attachment for {MGT-7: List of Shareholders} and for {AOC-4: 1. BS (AGM Notice, Director’s Report, MGT-9, Audit Report) 2. DR (Director’s Report and MGT-9)}.
• File Form ADT-1 for Appointment of Subsequent Auditor of the Company (Attachment as mentioned above).
• Complete Annual Filing up to March 2018 then File Form INC-22A. (Additional Information required for INC-22A:

1. Information about all associated directors: It is important to note that the DIN of every associated director must be in an “Approved” status and not disqualified.
2. Information about the Auditor: The company must have filed the form ADT-1 for the financial year 2018-2019 for the appointment of the auditor.
3. Information of Cost Auditor (if applicable): The company must file the form CRA -2 for the appointment of a cost auditor.
4. Attachment: A photograph of the registered office of the Company in which one of the Directors of the Company is present (internal and external photo) must be attached along with this form.
5. Any other Filing if required (DPT-3, BEN-2, MSME-1).