MCA Big Relief under Companies Fresh Start Scheme 2020
Protect Bulk ROC Penalty-Act Now Offer Companies Fresh Start Scheme& Register ROC Awaiting Compliances
If you are a company that has not been able to recover up until now under Section 164 or if you are a rejected director looking to unlock your DIN, then this is a "Must Read" for you.
MCA and Govt’s Initiative
As the lockdown continues, the side effects of the COVID-19 pandemic have adversely affected the entire economy of the world. Both corporations and the Indian government are under pressure. By announcing fresh measures from time to time, it tries to assist various sectors.
CFSS (Companies Fresh Start Scheme), 2020
- The Ministry of Corporate Affairs (MCA) declared the 2020 Fresh Start Scheme (CFSS) for corporations on March 30, 2020.
- Companies who have not filed ROC / MCA Annual Return and Financial Statements, i.e. Form AOC-4, XBRL AOC-4, CFS AOC-4, Form MGT-77
- Companies that have not submitted any E Forms that are needed to be submitted to the ROC / MCA and not submitted i.e. Form MGT-14, ADT-1, Form DPT-3, Form DIR-12, Form 20A, INC 22 except SH-7 & Charge related forms.
- The validity of this scheme is from April 1, 2020, to December 31, 2020. (During this time, pending records may be filed)
- CFSS gives a one-time appeal to the Registrar for condonation of delay in filling in the different records, forms, returns, etc.
3. Fee payable for document filing:
- No extra cost is payable and no penalty is perhaps the greatest advantage for companies.
- Standard Charge for Filing without any penalty
Avail lifetime chance for companies strike off
- The incentives under this arrangement can be accessed by every company that has been closed for some time now as ROC is immediately striking off owing to the non-filing of Annual Returns.
- MCA states, "In order to restart their companies, the strike off companies must first approach the NCLT and a copying order of NCLT authorizing such resurrection under section 252 of the CA 2013 must be filed in Form No." INC-28. They will take advantage of this scheme later on.'
What is E-Form Companies Fresh Start Scheme -2020: (Practical Application of the immunity certificate issued)
- E Form to be submitted after completion of all late documentation relating to the e-forms SRN
- Needed for MCA to be filed
- The timeLine can be Within Six months after the End of the scheme
- No fee for filing E Form Companies Fresh Start Scheme -2020
- Immunity Certificates will be provided by the ROC
- No further proceedings or prosecutions can be started after a certificate of immunity,
- All appeals pending against any action will be dropped by the MCA and ROC will drop all such kind of proceedings
Companies’ renewal procedure Under Companies Fresh Start Scheme, 2020
- Step-1: Application for Approach National Company Law Tribunal for revival
- Step-2: If the company is resurrected by National Company Law Tribunal, you must file E-Form INC-28 with a copy of the order passed by NCLT with the ROC concerned.
- Step-3: Afterwards, you will apply for and benefit from all the advantages offered under the CFSS scheme.
Advantages for the recovery of the company under Companies Fresh Start Scheme, 2020
By filling in the Companies Fresh Start Scheme-2020 form under this framework, the company will:
- It is not necessary to pay any fee for this form.
- Submit their old annual returns without an extra charge for 3 to 4 years. Full waiver for additional fee payment/penalties.
- Get immunity for a duration of 6 months after the Companies Fresh Start Scheme-2020 closing date.
- Get a Certificate of Immunity from the approved authority.
- Immunity from prosecution launch
- Immunity from proceedings for the imposition of penalties
Circumstances where CFSS-2020 is not applicable
- The final notice to withdraw the name of the company from the Companies Act 2013 has already been given by the concerned authority.
- The company under Strike off: If the corporation has already applied to withdraw the company's name by filing with the Registrar of Companies (ROC) STK-2 along with the specified payments.
- In any agreement or compromise, companies have combined.
- Insolvency: companies marked for the transition of liquidation of corporate insolvency resolution.
- Amalgamated companies: Applications filed for the acquisition of Dormant Companies Status
- Vanishing companies
- In each of the following cases:—
- Modification of the authorized capital (Form SH-7) i.e Form SH-7 for raised in Authorized Share Capital
- Charge-related (CHG-1, CHG-4, CHG-8, CHG-9) documents.
(General Circular No.12/2020 View CFSS 2020)
While submitting the due statutory documents under CFSS-2020, you can continuously file:
- Request to acquire Dormant company status OR
- STK-2 for Strike of Name of Company
Action by ROC/MCA:
- In case Documents / Pending ROC Returns are not filed.
- MCA / ROC will take steps in compliance with the Companies Act2013 provision, which can be made or initiate the high fines/penalties.
Revised introduction under LLP Settlement Scheme 2020
The time relief under the scheme for filing forms relating to the formation or alteration of fees under the Companies Act of 2013 and the time to perform extraordinary general meetings (EGMs) by video conferencing or other audio-visual means was also extended until the end of December. The LLP Settlement Scheme 2020, which was intended to allow LLPs to resolve their previous defaults, was also extended until the end of 2020.
- The LLP Settlement Scheme 2020 is only effective from 1 April 2020 until 30 September 2020.
- The due date for the filing of all the delayed reports for defaulting Limited Liability Partnership is 31st Aug 2020.
- No extra payments other than the usual processing fees for filing are accessible.
- There will be no action against the defaulting companies by the Registrar who filed all the late compliances on or before 30 September 2020.
- For LLPs that have nominated their company name to be removed from the ROC as per LLP rules 2009, the standards are not applicable. View Circular General Number 13/2020
How to Remove Disqualification of the Directors
- You have not been able to eliminate your disqualification as a director because it has not been possible to restore the struck off company? "Then let the company use the advantage of Companies Fresh Start Scheme, 2020and apply" Now.
- You still have another way, if not,-File a Writ Petition & get the Court's relief from the high court.
- Get can activate your DIN and get your career rolling on in company compliance operation!
Act NOW, Do not Regret Later under Companies Fresh Start Scheme, 2020
- Such a chance doesn't always come to you!
- As a Strike Off Company, by not having to pay the bulk ROC penalty/ fee, you will save a lot of money after the ailment of the scheme, and hence, in these very tough times, you will reduce the economic pressure.
As a Disqualified Director, act promptly to trigger your DIN and give your stagnant career a new lease of life under the company Compliance.
Contact Us- TODAY to know 'how, who, when, what' about Companies Fresh Start Scheme, 2020or Removal of Disqualification of Directors under the company act.
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