- April 10, 2020
- Posted by: Numbro
- Category: Companies Act
Companies Fresh Start Scheme: The 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 limit along with the prescribed filing fees.
However, most of the Companies have failed to file forms periodically with the MCA due to various reasons. As a number of representations were received from stakeholders requesting for grant of one-time opportunity, so as to enable them to complete their pending compliances by filing necessary documents , Ministry of Corporate Affairs has come up with Companies Fresh Start Scheme -2020 (CFSS-2020), to give an opportunity to the defaulting companies and to enable them to file the belated documents in the MCA-21 and to avoid prosecution including annual filings without being subject to a higher additional fees on account of any delay.
Accordingly, Numbro team has prepared FAQ’s for better understanding, and Private Limited Companies, LLP’s are advised to regularize their filings and best avail the opportunity. This document has been prepared by the secretarial department of Numbro and the authors can be reached at firstname.lastname@example.org for further queries.
FAQ’s Regarding opting of Companies Fresh Start Scheme -2020
Defaulting Company which has made a default in filing of any of the documents, statements, returns, etc. including Annual statutory documents on the MCA-21.
Duration of the Companies Fresh Start Scheme 2020
The Companies Fresh Start Scheme Effective from 01st April 2020 to 30th September 2020
Forms covered under the Companies Fresh Start Scheme
– ADT-1 for appointment of Auditor
– MGT-14 for filing of agreements, resolutions etc.
– PAS-3 for allotment of shares
– INC-22 for change of situation of registered office.
– Any other form
Advantages of the Companies Fresh Start Scheme 2020
Disadvantages of not opting the Companies Fresh Start scheme
Opportunity to Inactive Companies
The scheme gives an opportunity to Inactive companies to get their companies declared as “Dormant Company” under Sec 455 of the Act, by filing simple application at a normal fee.
DIN holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web can avail the opportunity and shall file the concerned forms without any additional fees or penalty till 30.09.2020.
ACTIVE non-compliant Status
Compliances Whose compliance status has been marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) eform are encouraged to avail the opportunity and shall file the concerned forms without any additional fees or penalty till 30.09.2020.
The content provided is for better understanding and knowledge sharing only. Users are advised to refer relevant applicable laws & amendments and to take professional advice before acting on this document.