The ministry of corporate finance has received much representation form stake holders to provide a one-time opportunity to file all the pending documents including the annual filing of the company without charging higher additional fees on any delay, to resolve this ministry exercise its power under section 460 & 403 of companies act 2013 and come with a scheme called CFSS-2020 which will be applicable form 1st of April 2020 to 30th September 2020.
To provide immunity to stakeholders of the company who are unable to file specified documents including annual filing to ROCs, the ministry of corporate affairs has launched companies fresh start scheme 2020 (CFSS-2020)
Under this scheme, the ministry has decided to provide an opportunity to all defaulting companies registered in India to make fresh start again after complying with all the required pending compliances.
FREQUENTLY ASKED QUESTIONS REGARDING CFSS-2020
|
|
Q 1 |
What is CFSS-2020? Ans: Companies Fresh Start Scheme is a one time amnesty scheme launched in the wake of COVI-19 Pandemic, in order to give a unique opportunity to the defaulting Companies to complete their pending filing without any additional fee or penalty and make their default good. |
|
|
Q 2 |
Who is CFSS Scheme Applicable on? Ans: CFSS is appliable on the Companies registered under the Companies Act, 2013. |
|
|
Q 3 |
What is the tenure of this scheme? ANS: This scheme shall prevail from April 1, 2020 to September 30, 2020. |
|
|
Q 4 |
Is this a perpetual scheme? ANS: No, this is a one-time scheme provides one-time relaxation to companies for filing pending forms with the RoC without payment of additional fees. |
|
|
Q 5 |
Whom does this scheme not apply on? a. Companies against which action for final notice for striking off of the name has been initiated by the Registrar of Companies (RoC) b. Companies against which action from RoC has been taken for strike off the name of the company c. Companies which have amalgamated under a scheme of arrangement or compromise under the Companies Act, 2013 d. Companies who have filed application for dormant status e. Vanishing companies f. Companies where appeal is pending before the court for management disputes |
|
|
Q 6 |
Is there any application that needs to be filed to avail this Scheme? ANS: There is application prescribed for availing the scheme. However, the company shall file e-form CFSS-2020 (yet to be deployed) on completion of filing (on Zero Fees) for applying for issuance of immunity certificate.
|
|
|
Q 7 |
Is this scheme applicable on foreign company? Will the forms FC-1, FC-2 and FC-3 be covered under the scheme? Ans: Yes, it is applicable on Foreign Companies Registered in India |
|
|
Q 8 |
Which forms does this scheme apply on? ANS: The list of forms on which the waiver of fee is applicable under the Companies Fresh Start Scheme can be viewed on the following Link:
|
|
|
Q 9 |
Whether ACTIVE NON-Compliant Companies file forms and returns under this scheme? ANS: YES. |
|
|
Q 10 |
Which forms of a Company under liquidation can be filed under this scheme? Ans: Only forms related to refunds can be filed under this scheme viz-a-viz GNL-2 (u/s 149, 152, 153, 154, 156, 157, 158, 159 and others), INC-28 (Amalgamation/ Merger/ Demerger), MGT-14 (Others) and GNL-4. |
|
|
Q 11 |
Can a deactivated DIN be activated through this scheme? Ans: A deactivated DIN can be reinstated by filing DIR-3 KYC e-form/ Web form OR INC-22A (Active) as applicable. No additional fee or penalty shall be applicable on these forms within this scheme. |
|
|
Q 12 |
Can a company which has been struck off due to default avail this scheme? Ans: No, A company which has been struck off due to any reason cannot avail the benefits of this scheme. |
|
|
Q 13 |
Is this scheme (CFSS) applicable to foreign company having its Project Office in India. ANS: Yes, it is applicable. |
|
|
Q 14 |
Does this scheme apply to Companies which have been automatically struck off due to non-filing of Annual Returns? ANS: No, CFSS is not applicable on struck-off Companies. |
|
|
Q 15 |
Will this scheme be applicable on a Struck-off Company if it is revived by NCLT? ANS: Yes, a struck off Company which has been revived by the NCLT can take advantage of this scheme. |
|
|
Q 16 |
What happens if a company has filed an appeal against any order, notice or complaint with any of the adjudicating authorities? ANS: The company shall first withdraw such appeal and then make the necessary filing under this scheme without any additional fee or penalty. |
|
|
Q 17 |
In case of MGT-14, Will condonation of delay be required for a delay in filing of more than 300 days? ANS: Yes, the condonation of delay has to be filed as prescribed. |
|
|
Q 18 |
In case of AOC-4, Will condonation of delay be required for a delay in filing of more than 300 days? ANS: No, it is not required. |
|
|
Q 19 |
What if the DIN of any of the Directors of a Company is Inactive, however, the Company is in Active mode? ANS: It can be resolve by filing the respective DIR3-KYC forms during the tenure of this scheme (unless the director(s) is/are disqualified u/s 164) |
|
|
Q 20 |
Can disqualification of Director be removed under this scheme? ANS: No, the disqualification of a director cannot be removed under this scheme. (Only inactive DIN due to non-filing of DIR-3-KYC can be activated by filing the same at no additional fee or penalty) |
|
|
Q 21 |
The Company was unable to file Satisfaction of Payment in CHG 4 as the Director's DIN had been deactivated. Now with this scheme, can the company first update its returns, trigger the din and then file CHG 4 under this scheme even if there is a delay of 1 year? ANS: Deactivated DIN can be activated without any additional fees. The filing of CHG-4 for the satisfaction of charges of more than 300 days is NOT permissible, but for delay in filing the satisfaction of charges, form No. CHG-8 may be filed and the power to grant such a delay (satisfaction) is conferred on the Regional Director(s) |
|
|
Q 22 |
IS CFSS-2020 also applicable to a subsidiary of a Foreign Company? ANS: Yes, it is appliable |
|
|
Q 23 |
Can we file for striking off a company (form STK-2) as business hasn’t been commenced after expiry of 180 days of incorporation, without filing INC 20A? ANS: STK-2 can be filed only after filing INC 20A |
|
|
Q 24 |
Will there be a partial or complete refund of additional fees already filed by the companies before the commencement of Companies Fresh Start Scheme, 2020? ANS: NO. There will be no refund for the fee already paid by any company prior to this scheme. This scheme has been launched in the wake of COVID-19 pandemic and is one of a kind. |
|
|
Q 25 |
Is this scheme applicable on delayed filing of Form 20A (Certificate of Commencement of Business)? ANS: An additional period of 180 days has already been allowed for filing INC 20A to all the companies. |
|
|
Q 26 |
The name of a Company has been struck-off by the ROC but is still having business. What options does such a Company have? ANS: Firstly, the Company should approach the NCLT and appeal for revival. If the company is revived by the NCLT, then it can avail the benefits of CFSS-2020 |
|
|
Q 27 |
On filing of CFSS, whether immunity certificate will be generated automatically? ANS: No, it is subject to approval of the respective ROC.
|
|
|
Q 28 |
Is this scheme applicable on forms which are due to be filed between April, 2020 and September 2020? ANS: This scheme can be availed during its tenure irrespective of the due date(s). |
|
|
Q 29 |
How can I avail these Scheme? IS there any procedure defined? ANS: You need to file all the pending forms with the ROC during the currency of this scheme. Once the filings are complete you can file for the form CFSS to get the certificate of immunity. |
|
|
Q 30 |
What happens if a defaulting Company does not avail this scheme? ANS: After the currency of this scheme the RoC will take necessary action against the defaulting Companies who have not availed this opportunity and are still in default. |
