Company Fresh Start Scheme (CFSS) & LLP Settlement Scheme 2020
Written by gkkedia Dt. May 8th, 2020
In earlier years 2010, 2011, 2014, 2018 MCA has introduced Company Settlement Schemes and now in this year i.e. 2020 it has again with this scheme. On 24.03.2020, MCA has come up with a scheme called Companies Fresh Start Scheme under Section 460 of the Companies Act, 2013 read with Section 403.
Companies Fresh Start Scheme, 2020 is a scheme which will give chance to enable companies to make good of any filing-related defaults, irrespective of the duration of default and get a fresh start as a Company which is fully complaint.
This is basically for those Defaulting Company who have made default in filing of the documents, returns etc. including annual statutory documents on MCA21 registry and for Inactive Companies.
This CFSS shall be applicable from 01.04.2020 till 30.09. 2020.
Here some following points where non-availability exists :
- Companies which are under strike-off by ROC
- Some which are under strike-off
- Some which have been amalgamated
- Companies which have filed for obtaining Dormant status
- Vanishing Companies
- Documentation regards to increase in authorized capital and charge related filings Form CHG- 1, CHG-4, CHG-8 and CHG-9)
- Those matter of any appeal and management disputes which are pending before court of law or tribunal
Those companies who are in default shall be provided Immunity only in cases of belated filings where only normal fees required and no additional fees is required however where proceedings involving interest of any shareholder or its director, or KMP or any other person belongs to company than immunity shall not be provided.
Three factors due to which this scheme is important-
- Specially for those defaulting Companies who were previously violated and now can comply with the provisions of the Companies Act, 2013.
- Only Normal Fees is required to levied , no additional would be levied.
- Immunity Certificate granting protection from any possible penalties and prosecutions.
The inactive companies who are in default while filing the due documents can now by availing this scheme may apply for simultaneously
- dormancy status or
- for striking-off the name of company
Registrar of Companies shall take incumbent action under the Companies Act against those Companies who in default and have not filed documents under this CFSS 2020 after the expiry period of the scheme.
LLP SETTLEMENT SCHEME , 2020
It is a One-time condonation of delay Scheme for filing required documents/forms of LLP with the Registrar of Companies.
- LLPs who are in default in filing any documents, returns etc. which are due for filing till 31 August 2020.
- Form-3, Form-4, Form-5, Form-8, Form-11, Form-12, Form-15, Form-22, Form-23, Form-29 and Form-31 are applicable for filing documents under this LLP Settlement Scheme 2020.
- LLPs get monetary advantages as additional fees has been waived off.
- The LLPs who are defaulted and have filed their pending Forms till 31.08.2020 shall not be prosecuted by Registrar of Companies for such defaults.
This scheme shall be applicable from 01.04.2020 till 30.09. 2020.
The defaulting LLPs may file form still 30th September,2020, till then No Additional fees will be charged to file forms.
- Except Form 3, Form 4, Form 8 and Form 11 , this scheme shall not be apply to filing of documents.
- The scheme shall also not apply to those LLPs who have made an application for striking-off from register.
Defaulting LLPs which have filed their belated documents till 30.09.2020 and made good default, shall not be prosecuted by Registrar of Companies (ROC).
Registrar of Companies shall take incumbent action under LLP Act against those LLPs who are in default and have not filed documents under this LLP Settlement Scheme 2020.