MCA has introduced the “Companies Fresh Start Scheme 2020” and “LLP Settlement Scheme 2020”. Both the schemes have been released to provide an opportunity to companies and LLPs to file any form in default except as stated irrespective of the duration of default and make a fresh start as a compliant entity. Key features of these schemes are:
Companies Fresh Start Scheme 2020
- this scheme shall remain in force from April 1, 2020, till Sept 30, 2020
- applies on a company which has defaulted in the filing of any document, statement, return etc on MCA21
- at the time of filing of any belated document, the only normal fee would be required to be paid and no additional fee would be levied on such filing
- immunity shall be provided from the launch of any prosecution or proceeding for imposing a penalty on the delay in filing the document
- in case the company or any of its officer in default has filed any appeal against any prosecution launched or proceedings for imposing penalty then the said appeal should first be withdrawn
- once the delayed forms are filed and they are taken on record and after the closure of the scheme the company shall apply for an immunity certificate under this scheme
- Exceptions: This scheme shall not apply to companies under striking off, amalgamation, dormancy, vanishing companies and where the increase in authorised capital or filing of charge related documents is involved, companies under CIRP or Liquidation
- the defaulting inactive companies can file the due documents under this scheme and then either apply to get a dormancy status or apply for striking off the name of the company
LLP Settlement Scheme 2020
- this scheme shall remain in force from April 1, 2020, till Sept 30, 2020
- applies on an LLP which has defaulted in the filing of any document, statement, return etc on MCA21
- defaulting LLP is permitted to file belated documents which were due for filing until August 31, 2020
- defaulting LLPs which have filed their belated documents till Sept 30, 2020, and made good the default, shall not be subjected to prosecution by the RoC
- this scheme shall not apply to LLPs which have made an application for striking off their names
Both these schemes present a one time opportunity to all the defaulting companies and LLPs to complete their filings and get immunity from all related prosecutions.
CLICK ME to read Circular on Companies Fresh Start Scheme 2020.
CLICK ME to read Circular on LLP Settlement Scheme 2020.
CLICK ME to find FORM E.
Please contact us for filing the belated forms and returns.
