1. What is Companies Fresh Start Scheme 2020 about?
Companies Fresh Start Scheme 2020 is a scheme introduced by the Ministry of Corporate Affairs to provide relief to law-abiding companies and LLPs in the wake of COVID-19. This is the very first kind of opportunity extended by MCA to both Companies and LLPs to make good any filing related defaults, irrespective of the duration of defaults, and make a fresh start as a fully compliant entity. Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19.
2. What is the USP of the Companies Fresh Start Scheme?
The USP of the scheme is a one-time waiver of additional filing fees for delayed filings by the companies with the Registrar of Companies.
3. When did Companies Fresh Start Scheme start?
The scheme shall commence from 1st April 2020.
4. Due date of the Companies Fresh Start Scheme?
All the companies can take benefit from the Scheme up to 31st December 2020.
5. Applicability of the Scheme?
This scheme is applicable to all the Companies i.e both Private and Public companies and it also includes the Company which is marked as “ACTIVE non-compliant” due to non-filing of Active Company Tagging Identities and Verification (ACTIVE) E-form INC-22A.
6. Companies not covered under the Scheme?
Following companies cannot apply for the Scheme:
- Companies against which action for final notice for striking of the name u/s 248 of the Act has already been initiated by the designated authority (However, these companies can apply for revival and then can take the benefits of the Scheme);
- Companies that have already applied for the action of striking off the name of the Company from the Register of Companies;
- Companies which have amalgamated under a Scheme of arrangement or compromise under the Act;
- Companies that have already applied for obtaining dormant status u/s 455 of the CA,2013 before the Scheme;
- Vanishing companies;
- Companies that have appealed against any prosecution launched for imposing penalties (Provided that if the company withdraws the appeal, they can avail the benefits of the Scheme post-withdrawal of appeal).
7. Forms that are covered under the scheme?
All the forms that are subjected to additional fees under Section 403 of Companies Act,2013 i.e all the forms whether event-based or annual based and INC-22A.
8. Forms that are not covered under the Scheme?
Following are the forms that are excluded under the Scheme:
- FORM SH-7
- FORM CHG-1
- FORM CHG-4
- FORM CHG-8
- FORM CHG-9
The above-mentioned forms are for an increase in share capital and charge related forms.
9. What shall be the filing fees and additional fees on filing belated documents under this Scheme?
The defaulting companies may themselves avail the scheme by filing documents that may not have been filed on payment of only normal fees as prevailing on the date of filing.
10. What is the extension of the Scheme for DIN and DPIN holders?
The scheme is not just applicable to Companies but it is also extended to the person holding DIN wherein holders of DINs marked as ‘Deactivated’ due to non-filing of DIR-3KYC/DIR-3 KYC-Web can also regularise the same by filling the form without paying any additional Non Compliance fees of INR 5000.
11. What are the Benefits of the Companies Fresh Start Scheme?
- Condonation of all Additional fee for filing of Belated documents;
- Granting of Immunity from the Prosecution;
- Granting of Immunity from the Proceedings for imposing penalty;
- ROC shall withdrawal all proceedings of adjudication of penalties u/s 454.
How can InCorp Advisory assist you in this Scheme?
Our specialized team assists companies and LLPs with the list of compliances to be completed with the procedure for the same under this Scheme. InCorp shall guide you end to end through the process of making your company/LLP compliant.