Companies Fresh Start Scheme 2020

File all pending returns without any penalty

Companies Fresh Start

Companies Fresh Start Scheme 2020

The Ministry of Corporate Affairs (MCA) has introduced a new scheme called the “Companies Fresh Start Scheme 2020” to help companies make good on any default in filing, irrespective of duration of default, and make a fresh start as a fully compliant entity. This scheme is similar to the LLP Settlement Scheme, 2020 – wherein a one-time opportunity was provided for all LLPs to regularise overdue compliances without any penalty.
As the name of the scheme suggests it is a one time opportunity for the companies to do due diligence to find out if there is any lapse in the filing of any document, statement or return to the ROC.

Timeline and Applicability

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.

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. Under this scheme, the additional fee, as well as penalty, has been completely waived off.

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.

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.

As per General Circular No 12/2020, the Company Fresh Start Scheme shall come to an end on 30th September 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 the scheme

INC - 20A Declaration For Commencement of Business
AOC - A To File Balance Sheet (Financial Statement)
MGT - 7 Annual Return Of The Company
ADT - 1 Return on Auditor Appointment
ADT - 3 Return on Auditor Resignation
DIR - 3 KYC Director KYC
INC - 22A Company KYC (Active)
ADIR - 11 Notice of Resignation by a Director
DIR - 12 Director Or KMP Appointment Or Changes Thereof
20 - B Annual Return under The Companies Act, 1956
23 - AC Filing of Balance Sheet under The Companies Act
Form - 66 Compliance Certificate From CS
   DPT - 3     Return of Deposits

This scheme is not applicable to the following

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

    The purpose of the Companies Fresh Start Scheme is to reduce the compliance burden on the corporates by giving an opportunity to all the companies who have defaulted in the past with respect to any ROC Filing. This is an incredible amnesty scheme by MCA which allows a defaulting/inactive company to file all pending compliance related returns and documents in the MCA-21 portal without any heavy additional fee and penalty.

    There are two major advantages of this scheme, first it allows a window of opportunity to comply with the legal provisions of the Companies Act, 2013. Secondly there is complete waiver of the additional fee, which is really a very big benefit to the corporates. Apart from the two benefits the company and its directors are gransted an immunity from prosecution.

    The timeline of the scheme gives a window of six month from 1st April to 30the September 2020, within which the company should file all its pending returns and file the form for immunity must be filed after close of the said window allowed for filing.

    This scheme is available to all active companies, irrespective of its size and type. Any company which has ever defaulted in filing a document, statement or return to the registrar of companies can take benefits of this scheme.

    As per the MCA, all the DIN which has been marked as Deactivated due to non filing of the DIR-3 KYC has been marked as Active and the directors can now first file their DIR-3KYC and then they may file any belated return of the company