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Writer's pictureHarshita Kushwah

All You Need to know about CFSS, 2020: No Additional fees, No Penalties, No Prosecution


1.) Who can avail this scheme?

Any Defaulting Company which has failed to file any mandatory form with ROC may avail this scheme. The officer in default(Directors/KMP) cannot avail the scheme except for DIR-3KYC.


2.) What was the motive behind introduction of CFSS, 2020?

Scheme is introduced with the motive of reducing compliance burden. The aim is to provide defaulting companies a chance to make their compliances good.


3.) Does this CFSS, 2020 scheme waive off all kinds of prosecution/ penalty over the Company?

This CFSS, 2020 scheme does not provide Immunity in following matters:

(i). Matters where appeal is pending before any Court;

(ii). Where any management dispute is pending before the Court or NCLT;

(iii). Where an order of conviction has been issued by the Court & no appeal preferred against such order as on 01st April, 2020;

(iv). Where an order imposing penalty has been made by the Adjudicating Authority & no appeal preferred against such order as on 01st April, 2020


4.) What are the benefits of Company Fresh Start Scheme, 2020?

Effect of the Scheme will be as follows:

a) No Need to pay any additional fees on any return of Company during Scheme.

b) Authority shall provide immunity certificate to Company.

c) Company shall withdrawal of appeal against any prosecution launched.

d) ROC Shall withdrawal all the prosecution pending regarding such forms/ returns.

e) ROC shall withdrawal the proceedings of adjudication of penalties u/s 454


5.) Who do you mean by Defaulting companies?

Defaulting Company means a Company defined under Companies Act, 2013 and which has made a default in filling of:

– Any of Document,

– Any of Statement,

– Any of Return etc.

– Including Annual Statutory Document


6.) How will defaulting Company be benefitted if they files the pending forms during the currency of the scheme?

They will be able to make their compliances good and there will be no prosecution/ penalty for the Companies which file their pending forms till 30th September, 2020 provided such prosecution/ penalty is associated with the filing related default.

No immunity is available for any default other than filing related default.


7.) What forms which can be filed under the Companies Fresh Start Scheme, 2020?

The forms which are subject to additional fee are eligible for filing under CFSS, 2020 and are as follows:

Annual Based MGT-7(Annual Return) and AOC-4(Financial statements)

Event Based PAS-3, MGT-14, ADT-1 etc. except SH-7,CHG-1, CHG-4, CHG-8 and CHG-9.


8.) What is the Time limit upto which I can make pending compliances complete?

The Scheme came in to force w.e.f 01.04.2020 and shall remain in force till 30.09.2020. Therefore, company will be able to file remaining forms, compliances till 30th September, 2020.


9.) Is this scheme eligible for Inactive Companies?

This scheme benefitted Defaulting companies but on the same time this scheme, also encouraged Inactive companies to start fresh by filing all their pending forms at Normal Fee by:

(i) either to apply for voluntary strike off by filing e-form STK-2; OR

(ii) apply for the status of Dormant Company by filing e-form MSC-1.


10.) What is the procedure for availing this scheme?

You have to file all your pending documents and forms before 30th of September, 2020 and file E-form CFSS – 2020 within the six months of the closure of the said scheme.


You can Post any questions down in comments below. Happy to Help:)

 

So, what are you waiting for? You can avail the Benefits under CFS Scheme offered by MCA through our experts at Entrepreneurly.in before 30 September, 2020. Contact Us Now for Complete Guidance FREE OF COST for your Company.

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