Company Fresh Start Scheme 2020
The Corporate Affairs Ministry (MCA) has come up with the ‘Companies Fresh Start Scheme 2020’ to enable companies make good of any filing-related defaults, irrespective of duration of default, and make a fresh start as a fully compliant entity. To provide a similar facility to Limited Liability partnerships (LLP), the MCA has also revised the LLP Settlement Scheme 2020 which is in vogue now. Below is the synopsis for both the schemes. Kindly contact us incase you have any defaulting companies or LLP’s and seek to regularize them.
COMPANIES FRESH START SCHEME 2020
Applicability Any Defaulting Company is permitted to file belated documents which were due for filing on any given date in accordance with the provisions of this scheme.
Time Frame This Scheme shall come into force on 01st April 2020 and shall remain in force till 30th September 2020
Fees and Immunity Every defaulting company shall be required to pay normal fees as prescribed under the Companies Act on the date of filing each belated document and no additional fee shall be payable. Furthermore, immunity from the prosecution and proceedings will be provided only on the filing of belated documents.
Non-Applicability 1 Companies against which action for final notice for striking off the name has already been initiated. 2 Where any application has already been filed by the companies for action of striking off the name of the company from the ROCs. 3 Companies which have been amalgamated. 4 Where application has already been made for Dormant Status. 5 To vanishing Companies. 6 Where any increase in authorized capital or charge related is involved
LLP Settlement Scheme 2020 1 Scheme in Force: 01st April 2020 to 30th September 2020. 2 All Defaulting LLPs permitted to file belated documents which were due for filing till 31st August 2020. 3 Normal fees to be paid on belated documents. 4 Defaulting LLPs which have filed their belated documents till 30th September 2020 shall not be subjected to prosecution by the Registrar for such defaults. 5 Scheme shall not apply to LLPs which have applications in Form 24 to the Registrar, for Striking off their name from the register.