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Income Tax

Companies Fresh Start Scheme

CFSS

The Ministry of Corporate Affairs had introduced a new scheme known as the Companies Fresh Start Scheme, 2020, valid from 01.04.2020 to 30.09.2020 to enable companies to make good their previous defaults. This Scheme was extended till 31.12.2020. The Fresh Start scheme and modified LLP Settlement Scheme incentivize compliance and reduce compliance burden during the unprecedented public health situation caused by COVID-19. 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 1st April 2020 and ending on 30th September 2020.

Companies fresh start scheme Features

Any defaulting company that has not filed annual return or any other MCA filing can use this scheme to file belated documents without paying penalty. This scheme will NOT be applicable for: Companies against which action for final notice for striking off the name has already been initiated by the MCA. You can check if a company is under strike off using the Master Data check on MCA portal. The company has filed an application for strike-off with MCA and the application is pending. Companies which have amalgamated under a scheme of arrangement or comproise. Companies that have filed for obtaining Dormant status. Vanishing companies. Companies in which authorised capital increase is involved or charge documents are to be filed.

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