Companies Fresh Start Scheme, 2020.

To,

All Regional Directors,

All Registrars of Companies

All Stakeholders

Sub: Companies Fresh Start Scheme, 2020.

Sir(s),

In furtherance of the Ministry’s Circular No. 11/2020, dated 24th March 2020 in an order to facilitate the companies registered in India to make a fresh start on the clean state, this ministry has decided to take certain alleviate measures for the benefit of all the companies.

2. Companies Act. 2013 requires all companies to make annual statutory compliance by filing the Annual Return and Financial Statements. Apart from this, various other statements, documents, returns, etc are required to be filed on the MCA21 electronic registry within prescribed time limits. Filling fees for filing such statements, documents, returns, etc are governed by. section 403 of the Companies Act 2013 read with companies (Registration offices and fees) Rules 2014.

3. The Ministry has received representations from various stakeholders required for grant of one-time opportunity, so as to enable them to complete their pending compliance by filing necessary documents in the MCA-21 registry including annual filings without being subject to higher additional fees on account of any delay.

4.In order to give such an opportunity to the defaulting companies and to enable them to file the belated documents in the MCA-21 registry. the Central Government in the exercise of powers conferred under section 460 read with section 403 of the Companies Act. 2013 has decided to introduce a scheme namely companies fresh start scheme, 2020 (CFSS-2020) condoning. the delay in filling. the above-mentioned documents with the Registrar. Insofar as it relates to charging of additional fees, and granting of immunity from laughing of prosecution or proceedings for imposing the penalty. on account of delays associated with certain fillings. Only normal fees for filing of documents in the MCA-21 registry will be payable in such a case during the currency of CFSS-2020 as per the provisions of section 403 read with companies (Registration offices and fee) Rules. 2014 and section 460 of the Act.

5. In addition. the scheme gives an opportunity to inactive companies to get their companies declared us dormant company under section 455 of the Act. by filling a simple application at a normal fee. The said provisions enable inactive companies to remain on the register of the minimal compliance requirements.

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