MCA released FAQs on CFSS 2020 and LLP Settlement Scheme 2020

Studycafe | Apr 16, 2020 |

MCA released FAQs on CFSS 2020 and LLP Settlement Scheme 2020

FAQs on Companies Fresh Start Scheme (CFSS), 2020 and LLP Modified Settlement Scheme, 2020

Major update about MGT14 as interpreted by CS Lalit Rajput

MCA CFSS Scheme

Please note that Form MGT-14 can be filed under the scheme if it’s filing due date is not exceeded 300 days. If it’s filing due date is beyond 300 days then first Company has to apply for condonation of delay.

1. Is the CFSS 2020 applicable on foreign company? Will the forms FC-1, FC-2 and FC-3 be covered under the scheme?

Ans: Yes.

2. How to file the belated returns for companies under liquidation?

Ans: 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.

3. Can Deactivated director activated through this scheme?

Ans: 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.

4. Should the returns be filed for the subsidiary where its Holding is currently under liquidation? But the returns relate to the period where the holding had its normal business activities. How to deal this?

Ans: Yes.

5. Under this scheme whether AoC-4 for a year can be filed, without filling the AOC-4 for the previous year?

Ans: 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.

MCA released FAQs on CFSS 2020 and LLP Settlement Scheme 2020

MCA released FAQs on CFSS 2020 and LLP Settlement Scheme 2020

6. Whether any separate AOC 4 and MGT 7 has to be filed for companies under liquidation?

Ans: There is no separate AR/BS for companies under Liquidation.

7. Whether CFSS scheme is applicable for the companies which have been automatically struck off due to non-filing of annual documents i.e. Annual Returns?

Ans: 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.

8. With regard to LLP settlement Scheme, should the Indemnity Bond be executed on Non Judiciary Stamp Paper? If yes, then on what denomination.

Ans: No indemnity bond is required under the LLP Settlement Scheme.

9. Applicability of CFSS to a foreign company having Project Office in India. (FC Forms to be filed in ROC).

Ans: Yes. CFSS is applicable for foreign companies.

10. For filing MGT 14, AOC-4 for the past year, do we need to apply for condonation also?

Ans: For filing MGT-14 beyond 300 days, condonation is required. However, AoC-4 for the past year(s) can be filed without any condonation.

11. If the Company is in Active mode, but the directors’ DINs are deactivated, what should we do?

Ans: 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

12. In our case, company was struck off and as a result both directors were disqualified. Now Company was Revived by NCLT and Revival order has been passed.

(i) How to remove disqualification of director u/s 164(2)(a)?

Ans: The removal of disqualification is not automatic and the same cannot be cured under the provisions of CA, 2013.

(ii) INC 28 is not filed till date (as it is required to be filed within 30 Days).

Ans: INC-28 can be filed by an authorised signatory who can be added from backend by the jurisdictional RoC based on evidence produced by the company.

(iii) How to do Annual filing of Past year?

Ans: Past year filings can be made as per applicable norms.

13. Can a company also file its old annual returns for 3 to 4 years without late fees?

Ans: Yes, without additional fee,

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