MCA's Fresh Start Scheme- an opportunity for defaulting companies

In the wake of COVID - 19, the Ministry of Corporate Affairs has provided a one-time opportunity to companies and LLPs to complete pending compliances, by filing necessary documents in the MCA-21 registry without being subject to additional fees due to the delay.

The Ministry, in order to allow companies to make a fresh start on a clean state has decided to introduce Companies Fresh Start Scheme (CFSS-2020) condoning the delay in filing of certain documents. Only normal fee shall be payable during currency of CFSS-2020 as per the provisions of section 403 read with Companies (Registration Office and Fee) Rules, 2014 and section 460 of the Companies Act, 2013.

Also, the LLP Settlement Scheme has been revised accordingly to allow LLPs to make good any filing related default irrespective of duration of default, and make a fresh start as a fully compliant entity.

The USP of both the schemes is a one-time waiver of additional filing fees for delayed filings by the companies or LLPs with the Registrar of Companies during the currency of the Schemes, i.e. during the period starting from 1 April 2020 and ending on 30 September 2020.

For details please find the attachment:

1. Circular: http://www.mca.gov.in/Ministry/pdf/Circular12_30032020.pdf 

2. LLP: http://mca.gov.in/Ministry/pdf/Press_30032020.pdf

 

 

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