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Companies Fresh Start Scheme, 2020 (CFSS-2020)

Validity: This scheme shall come into force on 01st April, 2020 up to 30th September 2020.
 
“Belated Documents” means Annual Return and Financial Statements, various other statements,documents, returns etc which are required to be filed in the MCA-21 registry within prescribed time limit.
 
Key Points
 
  1. Every defaulting company shall be required to pay normal fees on the date of filing of each belated document and no additional fee shall be payble.
     
  2. Immunity from penal proceedings, including against imposition of penalties for late submissions associated with belated documents. Application for seeking immunity shall be made in e-form CFSS-2020.
     
  3. The applicant before filing an application for issue of immunity under this scheme shall withdraw his already initiated appeal against any prosecution launched or the proceeding for imposing penalties.
     
  4. Additional time period of 120 days is given for filing appeals before the concerned Regional Directors against the order of Adjudicating Authority, in case the last date of appeal falls between 01/03/2020 and 31/05/2020.
     
  5. Scheme for Inactive Companies: The defaulting inactive companies, while filing the doucments under CFSS-2020 can simultaneously either
  • Apply to get themselves declared as Dormant Company under Section 455 of CA 2013 by filing e-form MSC-1 at a normal fee;
  • Apply for striking off the name of the company by filing e-form STK-2 by paying the fee payble on form STK-2.
  1. Non-applicabilty of Scheme: This Scheme shall not apply
  • to companies against which final notice of Strike off has already been initiated by Designated Auhtoritywhere any application for Strike Off has already been filed by companies with ROC
  • to companies which have amalgamated under a scheme of arrangement or compromise
  • where applications have already been filed for obtaining Dormant Status
  • to vanishing companies
  • where any increase in Authorised Share Capital is invloved (Form SH-7) and also charge related documents (CHG-1, CHG-4, CHG-8 and CHG-9)
 
REVISED LLP Settlement Scheme, 2020  
 
Key Points
 
  1. A new para has been inserted to increase the validity of the Scheme. This scheme shall come into force on 01st April, 2020 up to 30th September 2020.
     
  2. Every defaulting LLP shall be required to pay normal fees on the date of filing of each belated document and no additional fee shall be payble.
     
  3. The defaulting LLPs which have filed their belated documents till 30th September, 2020 and made good the default, shall not be subjected to prosecution by the Registrar for such defaults.
     
  4. Non-Applicabilty: This Scheme shall not be apply to LLPs which have made application in Form 24 for Strike off.

“Belated Documents” means all documents or forms which are required to be filed in the MCA-21 registry under the Provisions of LLP Act,2008 and the rules made thereunder.

Cut off Dates: Defaulting LLP is permitted to file belated documents, which were due to filing till 31st August, 2020.

Impact: The Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1st April, 2020 and ending on 30th September, 2020.
 
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