FAQ’s on Companies Fresh Start Scheme (CFSS) 2020

FAQ’S ON COMPANIES FRESH START SCHEME (CFSS)

The Whole world is fighting against the pandemic and Government has provided various relaxations. The Ministry of Corporate Affairs has launched a scheme called “Companies Fresh Start Scheme,2020” to give a fresh start to defaulting companies and to give immunity against the prosecution to such companies by filing E form CFSS 2020.

This article gives you detailed analysis of this scheme.

What is Companies Fresh Start Scheme?

“Companies Fresh Start Scheme, 2020” is a scheme which will give a chance to enable companies to make good of any filing-related defaults, irrespective of the duration of default, and make a fresh start as a fully compliant entity.

Who will get benefited from the Companies Fresh Start Scheme:

Under the scheme all the defaulting companies, who have made a default in filing necessary documents and forms with ROC will be able to get the benefit. Also, the companies who have been prosecuted against such default may be able to get the immunity from such prosecutions.

Who are called Defaulting Companies?

The companies that made default in payment or filing of any document, statement or return etc are said to be the defaulting companies.

Following are the Forms/Documents that you will be able to file under CFSS:

You may file the following forms in case where you have defaulted earlier in filing the form, which otherwise required to be filed with an additional fees.

Form AOC 4 ( Financial Statements)
MGT 7(Annual returns)
other forms like MGT 14, PAS 3, ADT 1 etc.

FAQ’s related to CFSS 2020:

1. What is the applicability of this scheme and till when this can be filed?

Ans: The Scheme came in to force on 01.04.2020 and shall remain in force till 30.09.2020. So you will be able to file all your pending forms and documents till the 30th of September, 2020. (Now you will be able to file all your pending forms till 31.12.2020, as the date for CFSS scheme has been extended till 31st December, 2020)

2. What is the procedure to avail this scheme? Is there any Separate form? If so, what is the time limit to file that form?

There is no procedure as such to avail this scheme. All you have to do is file all your pending documents and forms before 30th of Sptember, 2020 Extended date: 31.12.2020). Yes there is an E-form CFSS – 2020, which you need to file within the six months of the closure of the said scheme.

3. If any form filed within time during CFSS tenure. Such SRN is needed to be mentioned in CFSS?

If any form is filed within the due date, then no need to mention the SRN of such form in CFSS.

4. Whether a single Company can file multiple CFSS for one Company?

Basically, a Company can mention maximum 20 SRN in one CFSS. If a Company is required to mention more than 20 SRN, then such company needs to file more than 1 form.

5. I have recently filed an application for striking off my companies name, will I be able to get the benefits of the said scheme?

No, the MCA has specifically mentioned that companies who have applied for the final notice for striking of the companies name or against whom the ROC have issued the final notice for striking off the companies name, will be not able to get the benefit under the scheme. Hence, you will not be able to get the benefit of the same.

6. Do I need to pay an additional fee for the late filings, if I want to file my pending forms before the 30th of September, 2020?

No, you do not need to pay any additional fees if you take the benefit under this scheme. You will have to pay the normal fees only. However, you have to file the E-Form CFSS- 2020 for availing the benefits under this scheme.

Note: Now you may file all you pending forms till 31.12.2020 without any additional fees for the late filings as the date for the CFSS Scheme, 2020 has been extended.

7.Is there any fees for filing E-form CFSS 2020?

There is no fees for filing the for E form CFSS-2020 to be paid.

8. I am a partner in LLP, Can I take benefit of this scheme?

No, You can not take benefit under this scheme. However, there is another scheme introduced for LLPs as well which is “LLP settlement scheme, 2020” which gives the same benefits as provided to the companies by this scheme.

9. Do I need to pay an additional fee for the late filings, if I want to file my pending forms before the 30th of September, 2020?

10. Whether the Companies need to pass a separate resolution to authorize any director to file the CFSS form?

If any Company has already passed blanket resolution for filing of the forms, then there is no need to pass a separate resolution. Otherwise there is a need to pass a separate resolution to authorize the director to file such form.

11. My company has been inactive since the last 2 years, can I directly apply for the closure of the company under the Companies Fresh Start scheme?

No, first you will have to file your annual returns and then apply for the closure. However, under this scheme, you may while filing pending forms under this scheme can simultaneously apply for dormant company or Strike off your company without paying any additional fees.

Saying that, this would be a huge benefit for you, as all the penalty amount for not filing the returns for two years will be waived off if you take the benefit of this scheme.

12. How to check whether the company will get immunity or not on a specific SRN mentioned in the CFSS?

Details of the SRN’s shall be mentioned on Immunity certificate issued by the MCA.

13. Whether SRN of such PAS-6 needs to be mentioned in CFSS?

If any form is filed with MCA after the due date within the time frame of CFSS then, the SRN of such forms are mandatory to be mentioned in CFSS form to get immunity.

14. Whether any immunity certificate shall be issue by the ROC on filing of the form.

When an e-Form is successfully processed, the immunity certificate shall be generated and shared along with the acknowledgment email on the mail id of the company as mentioned in the form.

15. What is the last date of filing of CFSS?

Last date of filing of CFSS is 30th June 2021.