Companies Fresh Start Scheme 2020:
The Companies Fresh Start Scheme (CFSS) 2020 is a newly launched scheme by the Ministry of Corporate Affairs (MCA) and Central Government. It will provide a chance to the enabled registered companies in India, who are at default of filing related issues or for non-filing of forms for compliance with Registrar of Companies (ROC). The scheme allows such companies to make use of the applicability of the launched plan and correct the mistakes by filing the forms and documents irrespective of the duration of the said default. It is a fresh of new air for the companies to make a new start and get the status of fully compliant company or entity.
Defaulting Companies under the Scheme:
All the companies that are in default of filing any document or statement or paying any returns or taxes etc. are called as defaulting companies under the scheme.
Beneficiaries of the Companies Fresh Start Scheme:
Under the Companies Fresh Start Scheme 2020, the companies that are at default for non-filing or wrong filing of the necessary forms and documents with the Registrar of Companies (ROC) will be able to take advantage or benefit of this newly launched scheme. All such companies being prosecuted for making defaults or non-compliances will be able to take the immunity from the penal prosecutions against them.
Forms to be filed under CFSS 2020:
The companies are required to file the following forms and documents under the CFSS, 2020, in case they have defaulted in filing the forms earlier-
- Form AOC-4: For filing the Financial Statements
- Form MGT-7: For filing the Annual Returns
- Form MGT-14
- Form PAS-3
- Form ADT-1 etc.
Earlier the defaulting companies could file these forms only after paying a penalty or late fees prescribed by the law. But under the CFSS 2020, they can file the same without any chargeable fine.
Date of applicability of scheme:
The Companies Fresh Start Scheme came into effect from 1st April, 2020. It will remain into force, all over the country till 30th September, 2020, so that the defaulting companies can get ample time period to file their pending forms and documents.
Applicability of LLP to be benefited from the CFSS 2020:
A Limited Liability Partnership (LLP) cannot take the benefit of the Companies Fresh Start Scheme 2020. However, the Central Government and the ministry has introduced and launched a separate scheme for the benefits of the LLP called as ‘LLP Settlement Scheme, 2020’. This scheme provides the same benefits to the LLP as the CFSS is providing to the companies.
Procedure to avail the Companies Fresh Start scheme:
No formal procedure has been introduced by the authorities for the defaulting companies to avail this scheme. All that the companies have to do is to file the pending forms before the last date of the scheme.
Form required for CFSS 2020:
In spite of no formal procedure, a new form namely E-Form CFSS-2020, is to be filed by the defaulting companies before the closure of the Companies Fresh Start Scheme.
Fees for filing the E-form CFSS- 2020:
The applicants are not required to pay any kind of fees for filing the E-Form CFSS-2020.