Companies Fresh Start Scheme 2020- Key Features & FAQs- CFSS 2020 Scheme

In order to make a fresh start to companies, MCA has introduced, Companies Fresh Start Scheme, 2020 (Here after reffered as CFSS 2020 Scheme). The Scheme was introduced vide MCA General Circular No. 12/2020 dated 30th March, 2020.

Below article discusses, key features of this Scheme. This has been discussed in form of FAQs for better understanding.

What is the period of CFSS 2020 Scheme?

The Scheme shall come in force on 01.04.2020 and shall remain in force till 30.09.2020.

On whom this Scheme is applicable?

This Scheme is applicable on defaulting companies.

“Defaulting company” means a company defined under the Companies Act, 2013, and which has made a default in filing of any of the documents, statement, returns, etc. including annual statutory documents on the MCA-21 registry .” 

What are the Forms which can be filed under this Scheme?

Forms that can be filed under his scheme are as given below:

Some of the Important forms that can be filed are:

• AOC-4 (Form for filing financial statement and other documents with the Registrar)
• ADT-1 (Information to the Registrar by company for appointment of auditor)
• ADT-3 (Notice of Resignation by the Auditor)
• DIR-12 (Particulars of appointment of directors and the key managerial personnel and the changes among them)
• MGT-7 (Annual Return)
• DIR-3 KYC/Web form (Application for KYC of Directors)

These were some of the common examples. For Complete list refer: Forms which can be filed under CFSS 2020 Scheme

What are the Exceptions on which this Scheme does not apply?

The Exceptions are:

1. Companies against which action for final notice for striking off the name u/s 248 or the Act (previously section 560 or Companies Act, 1956) has already been initiated by the Designnted authority.

2. Where any application has already been filed by the companies for action or striking off the name of the company;

3. Companies which have amalgamated under a scheme of arrangement or compromise under the Act

4. Where application has been filed for obtaining Dormont Status under section 455

5. To Vanishing Companies

6. Where any increase in authorized capitnl is involved (Form SH-7) and also charge related documents (CHG-I, CHG-4, CHG-8 and CHG-9)

Why should I opt for CFSS 2020 Scheme?

Benifits of opting CFSS-2020 Scheme are as follows:

I. The Scheme enables the defaulting companies to file all their pending forms that are required to be filed with the Registrar of Companies by paying normal fees as prescribed under the Companies (Registration Offices and Fee ) Rules, 2014. Thus this is a chance to become compliant, without paying any additional fee.

II. Granting of Immunity from the Prosecution;

III. Granting of Immunity from the Proceedings for imposing penalty;

IV. ROC shall withdrawal the all proceedings of adjudication of penalties u/s 454.

What is the Scheme for Inactive Companies?

The defaulting companies, while filing due documents can:

1. Can apply for status of Dormant Company by filing E-Form MSC-1
2. Can apply for Strike Off by filing E-Form STK-2

What is the procedure of CFSS 2020 Scheme?

Companies Fresh Start Scheme 2020- Key Features & FAQs

You May Also Refer: Corporate Compliance Calendar for the Month of April 2020

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