FAQ ON COMPANIES FRESH START SCHEME, 2020 (CFSS-2020)
In order to give an opportunity
to the defaulting companies to enable them to file the belated documents in the
MCA-21 registry, the Central Government in exercise of powers conferred under
section 460 read with section 403 of the Companies Act, 2013 has introduced a
Scheme namely, Companies Fresh Start Scheme, 2020 (CFSS 2020).
The Scheme allows the defaulting
companies to condone the delay in filing
Annual
return and annual accounts
Various
other statements, documents, return etc
In so far as it relates to
charging of additional fee and granting of immunity from launching of
prosecution or proceedings for imposing penalty on account of delay associated
with these filings.
The scheme also allows the
inactive companies to file a simple application with normal fees to get their
companies declared as “Dormant Company” under section 455 of the Companies Act,
2013.
Q1. Is companies Fresh start
scheme, 2020 applicable to all companies?
Ans: Yes it is applicable to all
defaulting companies
Q2. What do you mean by
defaulting company?
Ans: Company defined under
Companies Act, 2013 and which has made a default in filling of:
·
Any Document,
·
Any Statement,
·
Any Return etc. including Annual Statutory
Document
Q3. What is an inactive company?
Ans: Explanation (i) to Section
455(1) of the Act defines the term “Inactive Company” as “Inactive Company”
means a company which has
- not been carrying on any business or operation, OR
- has not made any significant accounting transaction during the last two financial years, OR
- has not filed financial statements and annual returns during the last two financial years”
Q4. Whether defaulting companies
be able to file belated returns without additional fees?
Ans: Yes. Only normal fees for
filing of documents in the MCA-21 registry will be payable.
Q5. What is the validity of the
CFSS, 2020 scheme?
Ans: The Scheme is valid from
01.04.2020 to 30.09.2020
Q6. Does the Scheme applicable to
a Foreign Company?
Ans: No. The Scheme is applicable
to companies as defined in Section 2(20) of the Companies Act, 2013. That means
a company incorporated under this Act or under any previous company law.
Q7. Is it possible to withdraw
the appeal against any prosecution launched or the proceedings for imposing penalties
initiated by the adjudicating authority?
Ans: Yes. The applicant shall
before filing an application for issue of immunity certificate, withdraw the
appeal and furnish proof of such withdrawal along with the application.
Q8. Is there any remedy for cases
where the order of the adjudicating authority was passed but appeal could not
be filed?
Ans: Yes. The Scheme has given
the following options;
A. Period
of 120 days shall be allowed to make appeal where the last date for filing the
appeal against the order of the adjudicating authority under section 454 (6)
falls between 01-03-2020 to 31-05-2020 (both days included)
.B. During
such additional period of 120 days prosecution under section 454 (8) for non-
compliance of the order of the adjudicating authority shall not be initiated.
Q9. How to file application for
immunity under the Scheme?
Ans: The application may be made
electronically in Form CFSS-2020.
Q10. What is the time limit to
file Form CFSS-2020?
Ans: Form CFSS-2020 can be filed
after closure of the Scheme and after the documents are taken on file or record
or approved by the Designated authority as the case may be but within 6 months
from the expiry of the Scheme.
Q11. What are the exemptions to the
CFSS-2020 Scheme?
Ans: This Scheme shall not apply
to:
a) Companies
against which action for final notice for striking off the name u/s 248 of the
Act has already been initiated by the Designated Authority.
b) Where
any action has already been filed by the companies for action of striking off
the name of the company from the Registrar of companies.
c) Companies
amalgamated under a scheme of arrangement or compromise under the Act.
d) Where
applications have already been filed for obtaining dormant status under Section
455 of the Act before this Scheme.
e) Vanishing
Companies
f) Where
any increase in authorised capital is involved (Form SH-7)
g) Charge
related documents (CHG -1, CHG -4, CHG -8, CHG -9)
Q12. What is the effect of
immunity?
After granting the immunity, the
Designated authority concerned shall withdraw the prosecutions pending if any
before the concerned courts and the proceedings of adjudication of penalties
under section 454 of the Act.
Q13. How does the Scheme
applicable to inactive Companies?
Ans: The defaulting inactive
companies, while filing the due documents under CFSS, 2020 can simultaneously
either;
a) Apply
to get themselves declared as Dormant Companies by filing e-form MSC-1; or
b) Apply
for striking off the name of the company by filing e-form STK-2
Hi,
ReplyDeleteThanks for such a valuable and information It was very useful for me keep sharing ! much helpful for more person . if want Trust Registration Consultants in bangalore ConsultantsMsme Registration in bangalore click on it .