- April 17, 2020
- Posted by: Hushai Cconsultants LLP
- Category: India ROC Updates
In pursuance of the efforts to provide relief to Companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, the Ministry of Corporate Affairs, has introduced the “Companies Fresh Start Scheme, 2020” (CFSS) and revised the “LLP Settlement Scheme, 2020” to make good any filing related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity.
The Fresh Start scheme and modified LLP Settlement Scheme provides for 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.
Under the “Companies Fresh Start Scheme,2020” (CFSS), companies can file all belated filings, including “Annual filing forms”, ‘Form INC-22A’ and even the Form DIR-3 KYC, except charge related filings and increase in authorised capital. Companies are required to pay only normal filing fees as applicable to the company. Under the “Modified LLP Settlement Scheme” the benefit of additional fees waiver can be availed on all the forms provided under LLP Act and rules including the Annual filing forms. Only normal filings fees in respect of LLP is required to file.
The above mentioned schemes shall be in force from 01st April 2020 to 30th September 2020
Both the Schemes also contain provision for giving immunity from penal proceedings, including against imposition of penalties for late submissions and also provide additional time for filing appeals before the concerned Regional Directors against imposition of penalties, if already imposed.
The Scheme also provides for punitive action against the non-compliant companies by designated authorities in a timely manner after the conclusion of the Scheme.