Companies Fresh Start Scheme (CFSS), 2020 and LLP Modified Settlement Scheme, 2020
Frequently Asked Questions
Only Refund form, GNL-2 (149, 152, 153, 154, 156, 157, 158, 159 and others), INC-28 (Amalgamation/Merger/Demerger/445, 466, 481, Others), MGT-14 (Others) and GNL-4 are allowed to be filed if the company status is under liquidation.
Yes. He can file DIR-3 KYC eform/Web form and INC-22A (Active) as applicable without any payment of fee provided such director is not disqualified under section 164 of the CA 2013.
Yes, you can file without filing for the previous year. There is no restriction, however it is expected that complete and continuous year filing (without skipping intermediate year) will be good corporate governance.
There is no separate AR/BS for companies under Liquidation.
The struck off companies have to approach the NCLT for reviving their companies first and a copy order of NCLT approving for such revival under section 252 of the CA 2013 to be filed in Form NO.INC-28. Later on, they can take the benefit of this scheme.
No indemnity bond is required under the LLP Settlement Scheme.
Yes. CFSS is applicable for foreign companies.
For filing MGT-14 beyond 300 days, condonation is required. However, AoC-4 for the past year(s) can be filed without any condonation.
Deactivated DINs for not filing the DIR-3 KYC can be activated by filing it now without the fee of INR 5000 during the currency of the CFSS, 2020 provided such director is not disqualified under section 164 of the CA 2013
- (i) How to remove disqualification of director u/s 164(2)(a)?
- (ii) INC 28 is not filed till date (as it is required to be filed within 30 Days).
- (iii) How to do Annual filing of Past year?
The removal of disqualification is not automatic and the same cannot be cured under the provisions of CA, 2013.
INC-28 can be filed by an authorised signatory who can be added from backend by the jurisdictional RoC based on evidence produced by the company.
Past year filings can be made as per applicable norms.
Yes, without additional fee
SH-7 can be filed with applicable fee and additional fee. The additional fee waiver is not applicable for SH-7 and charge related forms.
List of forms (CA56/CA13/LLP) eligible for additional fee waiver is available at the link:CFSS2020_02042020.pdf
Deactivated DIN can be reactivated by filing DIR-3 KYC now without payment of INR 5000. Filing of CHG-4 towards satisfaction of charges beyond 300 days is NOT permissible, however for delay in filing satisfaction of charges, form no.CHG-8 may be filed and the power for such Condonation of delay (satisfaction) is vested with Regional Director(s)
STK-2 can be filed by a company who has not filed INC-20A within 180 days of incorporation. After a period of 180 days of incorporation, filing of form INC-20A is allowed to be filed first. Thereafter, they can file STK-2 if they desire so by following the relevant provisions of the Act relating to Strike off procedure.
AoC-4 or any other STP form filed with inadvertent errors can be marked as ‘defective’ by the jurisdictional RoCs based on evidence and formal request. Once the particular STP is marked as defective fresh filing has to be made.
22. Where orders have been passed by Hon’ble NCLT to restore the name of the company under section 252/253 subject to filing of all the pending documents and returns and no time limit is given in the order to file pending documents /forms/returns. The company has not yet filed the copy of order of NCLT with ROC. Can company avail this scheme and file all the pending documents without any additional fee?
Yes, after filing INC-28 with a copy of order passed by NCLT.
The CFSS 2020 and LLP Modified Settlement Scheme 2020 have been notified in view of the COVID-19 To provide a first of its kind opportunity to both Companies and LLPs to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
All newly incorporated companies are required to file a declaration for Commencement of Business within 180 days of incorporation under section 10A of the Companies Act, 2013. An additional period of 180 more days has been allowed for this compliance. (please see circulars issued in March 2020)
Disqualification of Directors cannot be cured under the scheme.
There is no specific process available for withdrawal of Form 24. If Form 24 is not yet approved, LLP may approach the jurisdictional ROC to ‘reject’ the form so that status of LLP gets marked to ‘Active’ and relevant filings can be made.
ACTIVE form can be filed without the fee of INR 10000.
The company has to approach NCLT and get an Order for reviving. Thereafter the company can take the benefit under CFSS.
DIR-3 KYC can be filed without the fee of INR 5000.
Subject to examination and approval by the jurisdictional RoC.
Additional fees would not be charged in respect of the 76 forms and such forms have already been displayed in MCA-21 portal.
Additional fee waiver becomes applicable only during the currency of the scheme.
The CFSS 2020 is applicable for defaulting companies to file the belated documents and does not extend to curing the disqualification of Directors.
Yes, it gets updated while generating challan.
CFSS 2020 does not cure the disqualification of Director. If there are no authorized signatories left in the company, the company may approach the jurisdictional RoC with a formal request to add one authorized signatory from backend. Later on, the company may file the belated documents under the scheme.
The struck off companies may approach the NCLT for revival. Once the company is revived the belated documents may be filed.
The belated documents can be filed without additional fee till 31st August,2020. However belated documents could be filed till 30th September and no prosecution or punishment proceedings would be launched.
No. For list of attachments while filing Form 24, please refer to instruction kit available on the portal.
Belated forms have to be filed first. CFSS-2020 would be made available w.e.f 1st October 2020.
Irrespective of the due date additional fee waiver can be availed during the currency of the scheme.
Belated documents have to be filed during the currency of the scheme. If the scheme benefits are availed, such a company has to file the CFSS eform on or after 1st October 2020 and before 31st March 2021.
All companies can avail the scheme for filing belated documents.
Yes, if the company status is not struck off and if it struck off it can take the benefit after it is revived.
No such requirement for LLPs who have availed the benefit under the LLP Modified Settlement Scheme.
The form CFSS 2020 would be made available w.e.f 1st October 2020 and till 31st March 2021 for filing purposes.
An LLP under struck off (Defunct) status cannot avail the benefit of LLP Modified Settlement Scheme.