MCA Introduced Company Fresh Start Scheme 2020

by Estartup India Grow Business With Us

Due to the unprecedented situation regarding public health and safety caused by the Coronavirus (COVID-19) pandemic. The Ministry of Corporate Affairs, in an attempt to ease the burden for the companies, Now the MCA has introduced a new scheme known as the Companies Fresh Start Scheme, 2020 (CFSS). In this article, we will discuss on the Company fresh start scheme and its major benefits.

About Company Fresh Start Scheme

Companies Fresh Start Scheme, 2020, is validated from 1 April 2020 to 30 September 2020 and offers companies the opening of a one-time application of condonation of delay of filling the different documents, forms, returns, etc.

What Does CFSS 2020 Cover?

As per the terms of the Companies Act, 2013, all companies are required to follow statutory compliances annually. This covers the Annual Return, Financial Statements and all the other necessary forms, records and statements that are specified, within that particular time frame. Non – compliance of the equation results in the imposition of penalties and fines. A company that loses to adhere to the compliances is called a defaulting company.

Note - MCA has announced the announcement for LLP compliances due to date extension. to make good their previous defaults.

Benefits of Company Fresh Start Scheme

There are various benefits for company fresh start scheme. Some of them are -

It provides an opportunity for businesses to make good any filling related default by paying normal fees only, irrespective of the duration of default.
It includes a provision for giving immunity from the launch of prosecution and proceeding, including against the imposition of penalties for a late submission.

Extension of Company Fresh Start Scheme

The Ministry of Corporate Affairs had introduced a new scheme known as the Companies Fresh Start Scheme, 2020, which was previously valid from 01.04.2020 to 30.09.2020. Know more about Extension of Company Fresh Start Scheme 2020