Ministry of Corporate Affairs on 30th March 2020, has introduced ‘Companies Fresh Start Scheme 2020’ to enable companies make good of any filing-related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
In order to give opportunity to the defaulting companies and enable them to file the belated documents in MCA-21 registry including annual filing, the government has introduced the above scheme condoning the delay in filing the documents.
Further, the scheme gives an opportunity to inactive companies to get their companies declared as a dormant company by filing simple application at a normal fee.
The scheme is applicable to every defaulting company which is now permitted to file belated documents that were due for filing on any given date and this scheme shall be in force till 30th September 2020. The scheme provides immunity from additional fees and penal proceedings, including against imposition of penalties for late submissions and also provide additional time for filing appeals before the concerned Regional Directors against imposition of penalties. However, the immunity would be only against delayed filings in MCA 21 portal and not against any substantive violation of law.
The application for seeking immunity in respect of belated documents filed under the scheme shall be made electronically in Form CFSS-2020, provided that this immunity shall not be applicable for appeals pending the court of law.
Further, the scheme shall not be applicable to companies against which action of final notice of striking off the name has been initiated, companies that filed application to be declared dormant and to companies which have amalgamated under a scheme of arrangement and to vanishing companies. It shall also not be applicable to cases where authorized capital or charge related documents are involved.
Click here to read the Notification.
