MCA has issued “Companies Fresh Start Scheme, 2020": Nesting You to save from the defaults

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It is not a hidden fact that the country is amid an economic fall. The COVID 19 situation and following lockdown have caused a huge economic loss. All the government authorized regulatory bodies are doing their bit in providing relief to the economy and the individuals in the country. In the same pursuance, the Ministry of Corporate Affairs (MCA) has come up with a brand new scheme named Companies Fresh Start Scheme, 2020 (CFSS) in the favour of businesses in India. Apart from that, MCA has given relaxations to the LLPs by introducing some statutory changes in LLP Settlement Scheme, 2020. 

Companies registered and operative in India are obliged to follow certain conditions directed by the government that includes Annual Return filing, filling of Financial Statements, books of accounts and other business-related documents and statements that are asked by the government. If the company fails to abide by any such conditions then as a punishment they are charged penalty or interests. Such companies are categorized as ‘Defaulting Companies’. 

Talking about CFSS, the scheme is taken out by the MCA to give relief to the companies from heavy compliance and is valid from 1 April 2020 to 30 September 2020. 

 

Key points in relation to the scheme have been summarised below:

  • This scheme applies to a company and LLP who has defaulted in filing any document, statement, return, etc. on the MCA portal. This scheme remains in force from 1 April 2020 until 30 September 2020.
  • Any belated document can be filed under such scheme after payment of normal fee and no additional fee would be paid under this scheme.
  • Immunity shall be provided from launching of any prosecution proceeding for imposing a penalty on delay in filing the document.
  • After the filing of the belated documents and approved by the designated authority, the company shall apply for the immunity certificate under CFSS-2020.

 

Nesting You is a corporate solution venture of Into Legal World which assist companies in the legal and business matters. Nesting You can help you save from the compliances due to the default. If you fall in the defaulting category Nesting You is the place to approach and you can be saved from heavy fines and complex procedures. While you can focus on the growth of your company, Nesting You will take care of the legal obligations.

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