There are various representation has been received by the ministry and Registrar of companies regarding the waiver of late fee for filing the various E forms of the Companies incorporated under the Companies Act 2013/1956 so that they can file the pending E Forms.

The Government has launched a new scheme know as “Companies Fresh Start Scheme, 2020 (CFSS 2020)” condoning the delaying filing the various E-Forms (Except Few) with Registrar, it relates to waiver of additional fees and granting of immunity from launching of prosecution or proceedings for imposing penalty on account of delay associated with certain flings.

The Companies Fresh Start Scheme (CFSS) 2020 is applicable from 1st of April, 2020 to 30th of September, 2020 on the various E-Form filed.

1. For the Defaulting Companies:

• Shall pay only the normal fees as prescribed by the Companies Rules, 2014 for all filings with the MCA 21 registry. No additional fees to be paid, whatsoever.
• Immunity against prosecution and proceedings for imposing penalty only where:-
  – The prosecution and proceedings arose due to the delay in filing of belated documents.
  – No other cases covered.
• In case there is an existing appeal filed by the company against any notice, complaint or order issued with regard to prosecution and proceedings related to the delay in statutory filing, the following steps are to be followed:-
  – Before registering under the CFSS 2020, the appeal filed by the company should be withdrawn.
  – At the time of making the application for the scheme, the company must furnish a copy of such withdrawal along with the application as proof.
• Where the order has been passed by the court and the company has not filed an appeal against the same as on the commencement of the scheme:-
  – The company is allowed 120 days to file an appeal before the Regional Director.
  – During this period of 120 days, for the non – compliance of the order passed by the court with regard to the delay in filing of any documents for the same shall be condoned and no further action shall be initiated against the company.
• Form CFSS – 2020 may be filed by the companies under the scheme.
  – The Form provides the companies with immunity for a period of 6 months after the date of closure of the CFSS 2020.
  – No fees to be paid on this particular form.
  – Immunity Certificate shall be granted by the designated authority.
• Immunity is not granted where:-
  – An appeal is pending in court against the company.
  – In case of management disputes pending before any court of law.
  – Where an order is passed by the court and no appeal has been made before the scheme came into force.
• Extension granted to file DIR-3/DIR-3KYC: Extended timelines between 1st April 2020 and 30th September 2020 is provided by MCA for the directors’ whose DIN is deactivated to come forward and file DIR-3KYC/DIR-3 KYC-Web. The filing fee of Rs 5,000 will not apply.

2. For the Inactive Companies:

The defaulting inactive companies may apply for the CFSS 2020 so as to file the due documents. Additionally, they may also do the following: –

• Submit an application for Dormant Status under Section 455 of the Companies Act, 2013 by way of filing of e-Form MSC – 1 along with the prescribed fees.
• Submit an application for striking off the name of the company from the Register of Companies.
• Extension granted to file e-Form ACTIVE: An extended timeline between 1st April 2020 and 30th September 2020 is provided by MCA for the ‘ACTIVE non-compliant’ companies to come forward and file e-Form ACTIVE. The filing fee of Rs 10,000 will not apply.

2. CFSS 2020 SCHEME IS NOT APPLICABLE-

• The company made an application for striking off the name of the company from ROCs;
• to companies against which action for final notice for striking off the name of the company under section 248 of the companies act, 2013 already issued by the Designated Authority;
• where any application has already been filed by the companies for striking off the name of the company from ROC;
• to Companies which have amalgamated under the scheme of compromise & arrangement under the Act;
• where application have already been filed for obtaining Dormant Status under section 455 of the Act before this scheme;
• Vanishing Companies;
• where any Increase in authorised share capital (Form SH-7);
• Charge related documents (CHG-1, CHG-4, CHG-8  and  CHG-9);