The central government has launched the Companies Fresh Start Scheme with effect from 1st April 2020 to allow a defaulting or inactive company to file any document, statement, returns including annual returns to the Registrar of Companies of any period without payment of any additional fee and penalty.

Frankly speaking, it was an incredible scheme introduced by the Ministry of Corporate Affairs (MCA) in India, which give a one-time relaxation from any additional fee, penalty or prosecution under the companies act with respect to pending returns of any kind by a company. The scheme is effective from 1st April 2020 and shall continue until 31st December 2020. This was a golden opportunity to file all old & pending returns of your company without any additional fee and penalty. Now the scheme is closed and this post is only for information purposes.

Important Points of CFSS 2020

  • Avail Free ROC Filing Check Service
  • The last date is 31st December 2020
  • Opportunity to File all Pending ROC Returns
  • No Penalty & Additional Fee
  • Get the best rates from us. Request Estimate
Companies Fresh Start Scheme 2020 1

Timeline & Applicability of The Companies Fresh Start Scheme, 2020 (CFSS-2020)

Start Of The CFSS 2020 Scheme: The Companies Fresh Start Scheme, 2020 is already notified by way of a General Circular No. 12/2020 on 30th March 2020 and the Scheme Shall Come into Force on 01st April 2020

Applicability Of The Scheme: The scheme is available to all defaulting companies which has not filed any form to the ROC within its due date and thus has defaulted under the Companies Act, 2013. This scheme is available to all companies irrespective of its type, hence it is available to every Private Limited Company, One Person Company (OPC), Small Company, Section -8 Company, Nidhi Company, Producer Company and all Public Limited Companies.

All Additional Fee & Penalty Waived Off: Every document, statement or returns as prescribed under the companies act have a prescribed due date. When a company fails to file the ROC Forms/Returns the same can be filed with an additional fee as per section 403 of the act. The additional fee for default in filing the annual return is Rs. 100 per day. For example, if a company has delayed the filing by six months then the additional fee shall be more than 18,000 for one form only. Under this scheme, the additional fee, as well as penalty, has been completely waived off.

File All Pending Returns Of Your Company: If your company has defaulted in filing any ROC Return, don’t miss this opportunity and take maximum advantage of it. Act fast and file the pending returns with normal ROC Filing Fee. We can help you to check ROC Due Diligence of your company without any charges.

File An Application For Immunity From Prosecution: A Company after filing all its pending forms, documents, statement, and returns need to make an application in the prescribed form within six months of the close of this scheme. It means the last date of filing an immunity application under CFSS 2020 will be 31st March 2021.

Scheme Ends on 31st December 2020: As per General Circular No 12/2020, the Company Fresh Start Scheme shall come to an end on 31st December 2020. After the scheme is closed the fee for filing shall return to its ordinary form as per section 403 of the Companies Act.

Eligible Forms Under Company Fresh Start Scheme 2020

All forms are eligible except those which have been specifically marked as Not Allowed. Please see below section

INC – 20A Declaration For Commencement of Business DIR – 11 Notice of Resignation by a Director
AOC – A To File Balance Sheet (Financial Statement) DIR – 12 Director Or KMP Appointment Or Changes Thereof
MGT – 7 Annual Return Of The Company 20 – B Annual Return under The Companies Act, 1956
ADT – 1 Return on Auditor Appointment 23 – AC Filing of Balance Sheet under The Companies Act, 1956
ADT – 3 Return on Auditor Resignation Form – 66 Compliance Certificate From CS
DIR – 3 KYC Director KYC DPT – 3 Return of Deposits
INC – 22A Company KYC (Active) Others All Other Forms Unless Marked as Not Allowed

Scheme Will Not Apply in Following Cases

  • In Case Application For Closure Already Filed
  • In Case Action For Closure Is Already Initiated
  • Companies Under Amalgamation
  • If application for Dormant Status is already filed
  • In case of Vanishing Company
  • Forms relating to Increase of Capital & Charges