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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