Companies Fresh Start Scheme (CFSS)

Secretarial

Companies Fresh Start Scheme (CFSS)

INTRODUCTION - Every company must file the following forms on an Annual Basis along with other applicable forms to the Ministry of Corporate Affairs:

A. FOR PRIVATE LIMITED COMPANIES

S. NO

NAME OF THE FORM

PURPOSE OF FILLING

1

Form AOC - 4

Financial Statements (Balance Sheet, P&L Statement, Cash Flows, etc. forming part of financials).

2.

Form MGT – 7

Management & Administration changes taken place in the Company.

3.

Form INC - 22A

KYC of the Company.

B. FOR PUBLIC LIMITED COMPANIES

1

Form AOC - 4

Financial Statements (Balance Sheet, P&L Statement, Cash Flows, etc. forming part of financials)

2.

Form MGT - 7

Management & Administration changes taken place in the Company.

3.

Form MGT -14

Approval of Financial Statements.

4.

Form INC - 22A

KYC of the Company.
  • Considering the above-stated forms or any other forms to be filled under the Companies Act, 2013 if there is any default in filling these forms at any time or any year the penalties will be levied by their respective Registrar of Companies (Ministry of Corporate Affairs).
  • The Additional fees/penalties which were levied are usually higher and may cause a higher financial burden to the Company.
  • To reduce this higher financial burden on various defaulting companies, The Ministry of Corporate Affairs after considering various representations from stakeholders, Govt. Bodies & Professional Bodies the Ministry has introduced COMPANIES FRESH START SCHEME, 2020 (CFSS - 2020) which will exempt the Additional Fees to be paid by companies for their defaulted forms.

 

SCHEME DETAILS

SCHEME BENEFIT:- This Scheme proposes to grant immunity for any prosecution or proceeding against the company for imposing any penalty or any additional fee on account of delay in filing documents.

HIGHLIGHTS OF THE SCHEME

S. NO

PARTICULARS

BRIEF DESCRIPTION

1.

Scheme Effective Period

01.04.2020 to 30.09.2020 

2.

Manner of Payment
  • Govt. Fee (At Actuals)
  • No Additional Fee
  • Immunity Form to be filled after filling all forms

3.

Applicability

To all companies (Except for those Companies for which prosecution and proceedings have been initiated)

4.

Special Cases
  1. Immunity can be provided, if the company withdraws any appeal made by it against the prosecution launched / proceedings filed / any order passed by a court / by any adjudication authority under the Act.
  2. If no appeal is made before the due date for filing appeal additional period of 120 days will be granted to file an appeal. (Applicable only for those companies which fall under the due date of 01/03/2020 to 31/05/2020 to file an Appeal)

5.

Cases / stages In-eligible for Immunity option
  1. Matter or appeal relating to the company’s management disputes.
  2. Where conviction orders have been passed by a court or adjudicating authority & no appeal preferred by the company or officers before the scheme came in enforce

6.

Benefit for Inactive Companies

It can convert into Dormant Company with a normal fee. (Dormant Company means those companies which are exempted from various procedural compliances by Registrar of Companies (ROC) for a particular period of time)


NON - APPLICABILITY

  1. The company which made an application for striking off (Permanent Closure of the Company) its name from register maintained by Registrar of Companies.
  2. Companies amalgamated under the scheme of compromise & arrangement (Mergers).
  3. Vanishing Companies (Non-traceable company as per official records of the ROC).
  4. The company has filed an application for obtaining the dormant status under section 455 of The Companies Act, 2013.
  5. Final notice for striking off the name of the company under Section 248 of The Companies Act, 2013 has already been issued by the Registrar.
  6. Filling of Documents related to Increase in Authorized share capital (Form SH-7) and Charge (Charge means Loans) related documents (CHG-1, CHG-4, CHG-8 & CHG-9)

 

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