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companies-fresh-start-scheme-2020

04/10/2020

Companies Fresh Start Scheme, 2020

The Government has provided several relief in statutory compliance in various statutes.  In most of the statute, the relief is related to the deferment of compliance burden for the next 3 months. However, by Ministry of Corporate Affairs, has given a big relief for the Pvt. Ltd./ Ltd. Companies to restart afresh where the companies could not comply with any of the compliance in earlier years, through MCA vide General Circular no. 12/2020 dated March 30, 2020.

This is a one-time opportunity for all the companies to make their defaults good irrespective of their duration and make a fresh start as fully complied entities provided defaults shall be made good during the period of the scheme. Any pending filings can be completed now without having charged penalties for late filing.

To allow defaulting companies and to enable them to file belated documents, the Central Government has introduced a scheme namely Companies Fresh Start Scheme, 2020 for condoning the delay in filing financial statements, annual return and various other documents, statements, returns required to be filed with the MCA.

ROC will grant immunity from launching of prosecution or proceedings of imposing penalty on account of delay in respect of the filings.

Only normal fees will be required to be paid in such cases. There will be no additional fees charged for late filing irrespective of the period.

Period of the Scheme: 1st  April 2020 to 30th September 2020.

Additional fees: Nil (Only applicable normal fees of the form will be payable).

Immunity: Immunity from the launch of prosecution or proceedings for imposing penalty

Form: CFSS form has to be filed after completion of belated filing with ROC to take an immunity certificate.

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