Enjoy a one-time waiver of additional filing fees for all delayed filings up to 30th September 2020. Thanks to Companies Fresh Start Scheme 2020 and revised LLP Settlement Scheme 2020!
Fresh Start of Companies / LLP 2020
The world, as a whole, is on a lockdown currently due to the unprecedented situation regarding public health and safety caused by the Coronavirus (COVID-19) pandemic. The Ministry of Corporate Affairs, in an attempt to ease matters for the companies, has introduced a new scheme known as the Companies Fresh Start Scheme, 2020 (CFSS).
Additionally, the MCA has also given the LLPs a bit of breathing space by making certain necessary changes to the LLP Settlement Scheme, 2020. The idea behind this is to provide a clean slate to all those law-abiding companies, giving them extended time and a certain level of financial relief with regard to compliances considering the current global situation.
Companies Fresh Start Scheme 2020
1. For the Defaulting Companies
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Shall pay only the normal fees as prescribed by the Companies Rules, 2014 for all filings with the MCA 21 registry. No additional fees to be paid, whatsoever.
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Immunity against prosecution and proceedings for imposing penalty only where:-
a. The prosecution and proceedings arose due to the delay in filing of belated documents. b. No other cases covered.
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In case of an existing appeal by the company against any such proceedings and prosecution or any related order and notice thereof, the company must withdraw the aforesaid appeal, before registering under this scheme.
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In case the company has not filed an appeal (on the commencement of the scheme) against any such court order related to the delayed filing, it will be given 120 days to do so. No further action will be initiated against it during this period.
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Upon filing the CFSS-2020 form, the company will be given immunity up to 6 months after the date of closure of the scheme.
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The designated authority will issue the Immunity Certificate in this regard
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The company does not need to pay any fee with this form.
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2. For Inactive Companies:
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The defaulting inactive companies may apply for the CFSS 2020 so as to file the due documents. Additionally, they may also do the following:-
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Submit an application for Dormant Status by filing e-Form MSC – 1 along with the prescribed fees.
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Submit an application for striking off the name of the company from the Register of Companies.
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Extension granted to file e-Form ACTIVE: An extended timeline between 1st April 2020 and 30th September 2020 is provided by MCA for the ‘ACTIVE non-compliant’ companies to come forward and file e-Form ACTIVE. The filing fee of Rs 10,000 will not apply.
Non - Applicability of the CFSS 2020
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Where the action for final notice of striking off the name as per the Companies Act, 2013 has already been initiated by the Designated Authority.
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Where the company has already filed the Form STK – 2 along with the prescribed fees for the striking off of the name of the company from the Register of Companies.
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Where the companies have been amalgamated under the scheme of arrangement or compromise.
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Where the application for Dormant Status has been filed by way of Form MSC – 1 along with the prescribed fees.
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Vanishing companies.
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Companies that are marked for the Corporate Insolvency Resolution Process or Liquidation.
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Where the following are involved:-
Increase in the Authorised Capital (Form SH-7)
Charge related documents (CHG-1, CHG-4, CHG-8, CHG-9)
Revised LLP Settlement Scheme 2020
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This scheme is to benefit defaulting LLPs for whom filing of belated documents ( Form 3, Form 4, Form 8 and Form 11) is due till 31st August 2020
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They will need to pay only the normal application fees for such filings. Any additional fee, whatsoever, has been waived off
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No proceedings and prosecution will be initiated by the Registrar against these LLPs if they complete the filing by 30th September 2020
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LLPs who have applied for striking off their names from the Registrar will not be considered for this scheme.
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Upon the conclusion of this scheme, the Registrar will be free to take necessary actions against the defaulting LLPs who have not availed this scheme.
Benefits of filing during this period - 1st April to 30th Septemeber
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You don’t have to pay penalty and thus save money
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Make your business fully compliant to regulations
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Reduce your compliance burden
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Remain on the right side of regulations
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Get immunity from penal provisions
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Take care of your long-standing non-compliance & make a fresh start all over again