{"id":359,"date":"2020-08-10T06:09:19","date_gmt":"2020-08-10T06:09:19","guid":{"rendered":"http:\/\/raaas.com\/blog\/?p=359"},"modified":"2025-05-03T18:08:56","modified_gmt":"2025-05-03T12:38:56","slug":"companies-fresh-start-scheme-2020","status":"publish","type":"post","link":"https:\/\/raaas.com\/blog\/companies-fresh-start-scheme-2020\/","title":{"rendered":"Companies Fresh Start Scheme, 2020"},"content":{"rendered":"<p>The entire economy of the nation is stagnant due to the current lockdown announced by the ruling in order to protect people from the COVID-19 pandemic. All the government authorized regulatory bodies are doing their best in providing relief to the individuals residing in India. One such organization is the Ministry of Corporate Affairs (MCA) that has come up with a brand new scheme named Companies Fresh Start Scheme, 2020 (CFSS) in the favor of businesses in India.<\/p>\n<p>Apart from that, MCA has given relaxations to the <a href=\"https:\/\/raaas.com\/registration-of-limited-liability-partnership\">LLP<\/a>s by introducing some statutory changes in LLP Settlement Scheme, 2020. The main purpose of changes in the scheme is to give additional time and financial relief (in terms of compliance) to a certain extent to all the generous companies.<\/p>\n<p><strong>Defaulting Companies<\/strong><br \/>\nDefaulting Company means a company defined under Companies Act, 2013 and companies which have made a default in filing of any of the documents, statement, returns etc. including annual Statutory Documents<\/p>\n<p><strong>Applicability of Scheme<\/strong><\/p>\n<ul>\n<li>This Scheme came into process from 01st April, 2020 and will end on 30th September, 2020.<\/li>\n<li>Company Law Fresh Start Scheme, 2020 is a scheme ignoring the delay in filing the form mentioned below with the Registrar, in so far it is relate to<br \/>\na. Charging of additional fees and<br \/>\nb. Granting of immunity from launching of prosecution or<br \/>\nc. Proceeding for imposing penalty on account of delay related with filings<\/li>\n<\/ul>\n<p>In addition, the scheme provides an opportunity to inactive companies to get their companies declared \u2018Dormant Company\u2019 under section 455 of the act by filing simple application at Normal Fees.<\/p>\n<p><strong>Non-Applicability of Scheme<\/strong><\/p>\n<ul>\n<li>Where the action for final notice of striking off the name as per the Companies Act, 2013 has already been introduced by the Nominated Authority;<\/li>\n<li>Vanishing companies;<\/li>\n<li>Where the companies have been amalgamated under the scheme of arrangement or compromise;<\/li>\n<li>Where the company has already filed the Form STK \u2013 2 along with the prescribed fees for the striking off of the name of the company from the Register of Companies;<\/li>\n<li>Where the application for Dormant Status has been filed by way of Form MSC \u2013 1 along with the prescribed fees;<\/li>\n<li>Companies that are marked for the Corporate Insolvency Resolution Process or Liquidation; and<\/li>\n<li>Where the followings are involved:<br \/>\na. Increase in the Authorised Capital (Form SH-7)<br \/>\nb. Charge related documents (CHG-1, CHG-4, CHG-8, CHG-9)<\/li>\n<\/ul>\n<p><strong>Who Can Take The Benefits Of The Companies Fresh Start Scheme 2020?<\/strong><br \/>\nThis Scheme is for Defaulting Companies who have failed to file the Forms, Returns, Statement, or Documents with the Ministry of Corporate Affairs.<\/p>\n<p>All the corporate bodies including Public Limited, Private Limited, and LLP\u2019s can take the benefits of Companies Fresh Start Scheme 2020.<\/p>\n<p><strong>What Are The Benefits Of Companies Fresh Start Scheme 2020?<\/strong><br \/>\nBenefits to companies and LLP\u2019s<\/p>\n<ul>\n<li>Full Waiver for Payment of Additional Fees\/ Penalty.<\/li>\n<li>Immunity from the launch of prosecution.<\/li>\n<li>Immunity from proceedings for imposing a penalty.<\/li>\n<li>Immunity certificate will be provided once the pending filings are completed.<\/li>\n<\/ul>\n<p><strong>What Is The Meaning And Effect Of An Immunity Certificate?<\/strong><\/p>\n<ul>\n<li>ROC shall withdrawal all the prosecution pending regarding such forms\/ returns.<\/li>\n<li>ROC shall withdraw the proceedings of adjudication of penalties u\/s 454.<\/li>\n<li>Authority shall provide immunity certificate to Company based on the declaration made in Form CFSS \u2013\u00a0\u00a0\u00a0 2020 (Form CFSS \u2013 2020 has to be filed within Six Months from the closure of the Scheme, there shall not be any fee payable on this form)<\/li>\n<li>The company has to withdraw of appeal against any prosecution if any filed by them.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The entire economy of the nation is stagnant due to the current lockdown announced by the ruling in order to protect people from the COVID-19 pandemic. All the government authorized regulatory bodies are doing their best in providing relief to the individuals residing in India. One such organization is the Ministry of Corporate Affairs (MCA) &hellip;<\/p>\n","protected":false},"author":1,"featured_media":360,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[41],"tags":[113,117,112,114,115,118,116],"class_list":["post-359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-formation-registration","tag-113","tag-applicability-of-scheme","tag-companies-fresh-start-scheme","tag-defaulting-companies","tag-non-applicability-of-scheme","tag-what-is-the-meaning-and-effect-of-an-immunity-certificate","tag-who-can-take-the-benefits-of-the-companies-fresh-start-scheme-2020"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Companies Fresh Start Scheme, 2020 - Blog | Chartered Accountant in India<\/title>\n<meta name=\"description\" content=\"Companies Fresh Start Scheme, 2020 - 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