Insights & Research
CS Muhammed Sahal
Partner & Head, Corporate Advisory
A welcome move and a Golden Opportunity from Ministry of Corporate Affairs (MCA) that for the first time, this kind of scheme is put forth by MCA in which all additional fees are waived for all kind of forms, returns and documents for past many years. This offer is considering the difficult financial or economic conditions in the wake of outbreak of COVID-19 and also to incentivize Companies to become compliant and start fresh in this new FY 2020-21
Legal Provision & Extent of Operation
Central Government introduce a Scheme namely Companies Fresh Start Scheme, 2020 (CFSS-2020) vide General Circular No. 12/2020 dated 30/03/2020 and For the LLPs by modification in LLP Settlement Scheme, 2020 under Circular No. 13./2020 (LLPSS-2020, which is modification in LLP Settlement Scheme, 2020 issued on March 04, 2020 under Circular No. 6 /2020) condoning the delay in filing the specified documents with the Registrar, insofar as it relates to charging of additional fees, and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain filings. As per the scheme, total 76 Forms will be allowed to be filed with MCA under these two Schemes, out of which 10 forms are pertaining to the Companies Act, 1956, 12 forms are pertaining to LLPs and 56 forms are pertaining to the Companies Act, 2013.
How to Avail Benefits
.What if already Notice/Order is Issued for such violation
This offer is during Nationwide Locked out position to relax the worry of business owners of financial burden of additional fees and giving them fresh start opportunity. Apart from that MCA also intends to clear all past non compliances in filing of documents. This will give opportunity to MCA to weed out Inactive Company and update its records to monitor and govern few compliant companies only and that too with all updated documents.
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