What is this scheme is all about? whom it will benefit? whom it will not? What would be the effect of these schemes? There would be numerous questions that might be bothering you. So here is an article specifically to clear all your doubts and solve all your questions “A compilation of FAQs on Companies Fresh Start Scheme, 2020:
“Companies Fresh Start Scheme, 2020” is a scheme which will give a chance to enable companies to make good of any filing-related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity.
Under the scheme all the defaulting companies, who have made a default in filing necessary documents and forms with ROC will be able to get the benefit. Also, the companies who have been prosecuted against such default may be able to get the immunity from such prosecutions.
The companies that made default in payment or filing of any document, statement or return etc are said to be the defaulting companies.
You may file the following forms in case where you have defaulted earlier in filing the form, which otherwise required to be filed with an additional fees.
The Scheme came in to force on 01.04.2020 and shall remain in force till 30.09.2020. So you will be able to file all your pending forms and documents till the 30th of September, 2020. (Now you will be able to file all your pending forms till 31.12.2020, as the date for CFSS scheme has been extended till 31st December, 2020)
There is no procedure as such to avail this scheme. All you have to do is file all your pending documents and forms before 30th of Sptember, 2020 Extended date: 31.12.2020). Yes there is an E-form CFSS – 2020, which you need to file within the six months of the closure of the said scheme.
No, the MCA has specifically mentioned that companies who have applied for the final notice for striking of the companies name or against whom the ROC have issued the final notice for striking off the companies name, will be not able to get the benefit under the scheme. Hence, you will not be able to get the benefit of the same.
No, first you will have to file your annual returns and then apply for the closure. However, under this scheme, you may while filing pending forms under this scheme can simultaneously apply for dormant company or Strike off your company without paying any additional fees.
Saying that, this would be a huge benefit for you, as all the penalty amount for not filing the returns for two years will be waived off if you take the benefit of this scheme.
No, you do not need to pay any additional fees if you take the benefit under this scheme. You will have to pay the normal fees only. However, you have to file the E-Form CFSS- 2020 for availing the benefits under this scheme.
Note: Now you may file all you pending forms till 31.12.2020 without any additional fees for the late filings as the date for the CFSS Scheme, 2020 has been extended.
There is no fees for filing the for E form CFSS-2020 to be paid.
No, You can not take benefit under this scheme. However, there is another scheme introduced for LLPs as well which is “LLP settlement scheme, 2020” which gives the same benefits as provided to the companies by this scheme.
No, it is specifically stipulated in the scheme that, this scheme will not be available in case of filing of form SH 7 i..e for increase in share capital. Hence, you will have to file the form with additional fees as applicable.
Yes, if you file your form AOC 4 and MGT 7 before the 30th of September, 2020 (31st December, 2020 as extended date for the scheme CFSS 2020) and file to form CFSS- 2020, you will get an immunity from being prosecuted further. You will be provided with Immunity circumstances.
Yes, You may file all the pending forms and documents without any penalties and additional fees under CFSS 2020. After that you may either continue with your company or strike off your company without any kind of additional fees.
DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web and those Companies whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification(ACTIVE) e form are encouraged to become compliant once again in pursuance of the General Circular No. 11 dated 24th March, 2020 & General Circular No.12 dated 30th March 2020 and file DIR-3KYC/DIR-3KYC-Web/ACTIVE as the case may be between 1st April, 2020 to 30th September, 2020 without any filing fee of INR 5000/INR 10000 respectively.
Note: Now the Due date for the Conclusion of the Companies Fresh Start Scheme has been extended till 31.12.2020. Hence, DIR 3 KYC can be filed till 31st December, 2020 without any filing fees.
List of Forms eligible for additional fee waiver under the CFSS,2020 and LLP Settlement Scheme, 2020 are (List of forms eligible for waiver)
Yes, Foreign companies are also covered under the scheme. So late filing of Form FC-1, FC-2 and FC-3 are also covered under the scheme.
Only Refund form, GNL-2 (149, 152, 153, 154, 156, 157, 158, 159 and others), INC-28 (Amalgamation/Merger/Demerger/445, 466, 481, Others), MGT-14 (Others) and GNL-4 are allowed to be filed if the company status is under liquidation.
Yes. He can file DIR-3 KYC eform/Web form and INC-22A (Active) as applicable without any payment of fee provided such director is not disqualified under section 164 of the CA 2013.
Yes, the company needs to file the returns for the period during which the holding company had its normal business activities without any late fees.
Yes, you can file without filing for the previous year. There is no restriction, however it is expected that complete and continuous year filing (without skipping intermediate year) will be good corporate governance.
There is no separate AR/BS for companies under Liquidation.
The struck off companies have to approach the NCLT for reviving their companies first and a copy order of NCLT approving for such revival under section 252 of the CA 2013 to be filed in Form NO.INC-28. Later on they can take the benefit of this scheme.
No indemnity bond is required under the LLP Settlement Scheme.
Yes. CFSS is applicable for foreign companies.
For filing MGT-14 beyond 300 days, condonation is required. However, AoC-4 for the past year(s) can be filed without any condonation.
Deactivated DINs for not filing the DIR-3 KYC can be activated by filing it now without the fee of INR 5000 during the currency of the CFSS, 2020 provided such director is not disqualified under section 164 of the CA 2013
The removal of disqualification is not automatic and the same cannot be cured under the provisions of CA, 2013.
INC-28 can be filed by an authorized signatory who can be added from back end by the jurisdictional RoC based on evidence produced by the company.
Past year filings can be made as per applicable norms.
Yes, a company can file its old annual returns for 3 to 4 years without additional fee.
SH-7 can be filed with applicable fee and additional fee. The additional fee waiver is not applicable for SH-7 and charge related forms.
Yes. The CFSS 2020 is applicable to both subsidiaries of a foreign company registered in India and froeign company.
No. As the rules of revised LLP Settlement Scheme, 2020 has clearly mentioned that the LLPs which have ‘Defunct’ status will not be able to take the benefit of the scheme.
STK-2 can be filed by a company who has not filed INC-20A within 180 days of incorporation. After a period of 180 days of incorporation, filing of form INC-20A is allowed to be filed first. Thereafter, they can file STK-2 if they desire so by following the relevant provisions of the Act relating to Strike off procedure.
AOC-4 or any other STP form filed with inadvertent errors can be marked as ‘defective’ by the jurisdictional ROCs based on evidence and formal request. Once the particular STP is marked as defective fresh filing has to be made.
Yes. AOC 4 can be filed under the CFSS 2020 scheme without any late or additional fees.
Yes, a company may file all the pending documents after filing INC-28 with a copy of the order passed by NCLT.
The CFSS 2020 and LLP Modified Settlement Scheme 2020 have been notified in view of the COVID19 To provide a first of its kind opportunity to both Companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
Yes. The CFSS 2020 is applicable to the project office of a company in India having FCRN no.
All newly incorporated companies are required to file a declaration for Commencement of Business within 180 days of incorporation under section 10A of the Companies Act, 2013. An additional period of 180 more days has been allowed for this compliance.(please see circulars issued in March, 2020)
Disqualification of Directors cannot be cured under the scheme.
There is no specific process available for withdrawal of Form 24. If Form 24 is not yet approved, LLP may approach the jurisdictional ROC to ‘reject’ the form so that status of LLP gets marked to ‘Active’ and relevant filings can be made.
ACTIVE form can be filed without the fee of INR 10000.
The company has to approach NCLT and get an Order for reviving. Thereafter the company can take the benefit under CFSS.
DIR-3 KYC can be filed without the fee of INR 5000.
No. The CFSS 2020 does not allow any refund.
Subject to examination and approval by the jurisdictional RoC.
Additional fees would not be charged in respect of the 76 forms and such forms have already been displayed in MCA-21 portal.
Additional fee waiver becomes applicable only during the currency of the scheme.
The CFSS 2020 is applicable for defaulting companies to file the belated documents and does not extend to curing the disqualification of Directors.
Yes. The additional fees has been waived off for late filings for LLP under the revised LLP settlement Scheme, 2020.
CFSS 2020 does not cure the disqualification of the Director. If there are no authorized signatories left in the company, the company may approach the jurisdictional RoC with a formal request to add one authorized signatory from back end. Later on the company may file the belated documents under the scheme.
The struck off companies may approach the NCLT for revival. Once the company is revived the belated documents may be filed.
Belated forms have to be filed first. E form CFSS-2020 would be made available w.e.f 1st October, 2020.
Irrespective of the due date additional fee waiver can be availed during the currency of the scheme.
Belated documents have to be filed during the currency of the scheme. If the scheme benefits are availed, such a company has to file the CFSS E- form on or after 1st October, 2020 and before 31st March, 2021.
All companies can avail the scheme for filing belated documents.
Yes, if the company status is not struck off and if it struck off it can take the benefit after it is revived.
No such requirement for LLPs who have availed the benefit under the LLP Modified Settlement Scheme.
The form CFSS 2020 would be made available w.e.f 1st October 2020 and till 31st March 2021 for filing purposes.
An LLP under struck off(Defunct) status cannot avail the benefit of LLP Modified Settlement Scheme.
The Scheme, Companies Fresh Start Scheme, 2020 will prove to be a breather for non filers or defaulting companies. The Government has taken a brave step by introducing this scheme which will not only reduce the burden of late fees but also to provide immunity from the prosecution in this regard. Hope you will make the most out of it.
If you wish to know the changes in LLP settlement scheme, 2020, this would be an informative read for you: “Companies Fresh Start Scheme, 2020 and revised LLP Settlement Scheme, 2020”
Consequences of Missing DIR-3 KYC Filing Introduction If you’re a company director in India, you must file your DIR-3 KYC…
Trademark Assignment vs Ownership Transfer: What You Must Know Introduction Businesses invest heavily in their brands, and a trademark protects…
Top Regulatory Challenges of Global Companies for Indian Subsidiaries Introduction Expanding into India offers global companies access to a fast-growing…
How to Transfer IP Rights from Foreign Parent to Indian Entity? Introduction Transferring IP rights from a foreign parent to…
How to Avoid International Tax for Indian Startups? Introduction Expanding across borders brings new customers, but also new tax challenges.…
Recent Updates in Trademark Registration in India (2025) Introduction In 2025, trademark registration in India has been updated to make…
Leave a Comment