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Company Law Fresh Start Scheme- 2020

Apr 10, 2020


This document is the property of INMACS and contains confidential information that has been provided at your request. This information should not be disclosed in whole or in part without express written consent of the Company. This document should not be duplicated or used, in whole or in part, except for evaluating the company’s proposal and should be returned upon request.

Short Summary

Company Law Fresh Start Scheme- 2020
  • A step is taken by MCA to allow corporates to make a “FRESH START” vide circular issued by MCA on 30.03.2020 for the benefit of all the Companies.
  • This Scheme Shall be start from 01st April 2020 and end on 30th September 2020.
  • In order to give opportunity to defaulting Companies and to enable them to file the belated documents in the MCA-21 Registry, this scheme has been introduced for condoning the delay in filing the documents with the Registrar, in so far it is relate to
  • charging of Additional Fees and
  • granting of immunity from launching of Prosecution or proceedings for imposing Penalty on account of delay associated with filings.
  • As per Scheme, Companies have to pay ONLY NORMAL FEES of the forms WITHOUT ANY ADDITIONAL FEES.
  • “Defaulting Company” means a Company defined under Companies Act, 2013 and Companies which has made a default in filling of
    • Any of Document,
    • Any of Statement,
    • Any of Return etc
    • Including Annual Statutory Document
  • The scheme shall apply on the following forms:
    • Annual Return- MGT-7
    • Financial statement- AOC-4
    • Other forms required to be file with Roc Like
    • PAS-3
    • MGT-14
    • ADT-1
    • Any other Form
    • Exceptions
    • SH-7 – Increase in Authorized Capital
    • Charge related form (CHG-1, CHG-4, CHG-8 or CHG-9)

Scheme not to apply in certain cases

This scheme shall not apply to :

  • To company against which action for final notice for striking off the name u/s 248 of the act has already been initiated by the Designated Authority.
  • Where Company has already filed STK-2 for strike off of Company with ROC.
  • Companies which have amalgamated under the scheme of arrangement or compromise under the Act.
  • Where application has already been filed for obtaining Dormant Status under section 455 of the Act before this Scheme.
  • Vanishing Companies
  • Where increase in Authorized Capital is involved( Form SH-7) and also charge also charge related documents(CHG-1, CHG-4, CHG-8 or CHG-9)

Effects of Company Law Fresh Start Scheme

  • Companies does not need to pay any additional fees on any return during this scheme
  • Withdrawal of appeal against any prosecution launched or proceedings for imposing penalties initiated by the Defaulting Company before filing an application for issue of immunity certificate and furnishing proof of withdrawal along with application.
  • Designated Authority shall provide immunity certificate to Company.
  • ROC shall withdraw all the prosecution pending regarding such forms or returns
  • ROC shall withdraw all the proceedings of adjudication of penalties u/s 454.

Scheme for Inactive Companies

A defaulting inactive companies while filing pending form under scheme simultaneously can apply for following simultaneously:

  • To get themselves declared as Dormant Company under section 455 of the Companies Act, 2013 by filing E-form MSC-1 at the normal fee on the said form.
  • Apply for striking off by filing E-form STK-2 by paying the fee payable on form STK-2.

Steps for Defaulting Companies

The steps to be taken by the defaulting Companies to take benefit of the scheme:

  • Step 1– Filing of all the due forms till 30th September, 2020 along with normal fee;
  • Step 2– Withdrawal of appeal, if any pending against the prosecution/ proceedings related to the filing related default;
  • Step 3– Filing of Form CFSS-2020 for obtaining Immunity Certificate from the ROC (no fee payable on such form); &
  • Step 4– Grant of Immunity Certificate by ROC
  • Note:
  • Form CFSS-2020 has to be filed at any time after filing all the pending forms but not later than 6 months from the conclusion of the scheme i.e. 31st March, 2021.
  • At the conclusion of the scheme, the Designated Authority shall take necessary action against the Companies who have not availed this scheme and are in default in filing these documents in a timely manner.

LLP Settlement Scheme 2020

Certain modifications have also been brought in the LLP Settlement Scheme vide Circular dated 30.03.2020 to reduce the compliance burden on Limited liability Partnerships (LLPs) registered in India.

These modifications are as follows:

a)The modifications shall come into effect from 1st April 2020 and remain effective till 30th September 2020.

b)Any defaulting LLP is permitted to file belated documents due for filing till 3rd August 2020.

c)No additional Fee shall be payable for filing any belated documents under this scheme.

d)The defaulting LLPs which have filed their belated documents till 30th September 2020 and made good the default shall not be subjected to prosecution by the Registrar for such defaults.

e)The scheme shall not be applicable to the LLPs which have made an application for striking off as per the provisions of Rule 37(1) of the LLP Rules, 2009

The Defaulting LLP can file any form which are due to be filed till 30th August, 2020 such as:

  • Form – 3 – Information with regard to Limited Liability Partnership Agreement and changes, if any, made therein;
  • Form – 4 – Notice of appointment, cessation, change in name/address/ designation of a designated partner or partner and consent to become a partner/ designated partner;
  • Form – 8 – Statement of Account & Solvency (Annual or Interim);
  • Form – 11 – Annual Return of Limited Liability Partnership (LLP).

Scope of Professional work to be done

  • Filing of all the pending returns on MCA Registry related to company or LLPs. and Filing of Form CFSS-2020 for obtaining Immunity Certificate from the ROC.
  • In addition to proposed fee, disbursement charges and out of pocket expenses (if any) will be borne by the Company. Some examples of disbursement charges are telephone and fax, courier, Government fee (on actuals), conveyance, Digital Signature Certificates etc. GST on the bills shall be chargeable extra.

S. No.

Description of work

Government Fee

Professional Fees


Annual Filing Forms for Companies

  • AOC-4
  • MGT-7

On Actuals

INR 2000/- per form if all the documents are to be prepared If only form to be filed – INR 1000/- per form

Other Forms Required to be filed with ROC

  • MGT-14
  • PAS-3
  • ADT-1
  • Any other event based form.

On Actuals

Rs. 2000/- per form


Forms to be filed for LLPs

  • Form-3
  • Form-4
  • Form-8
  • Form-11
  • Any other form related to LLP

On Actuals

Rs. 1000/- per form

Filing of Form CFSS-2020 for obtaining Immunity Certificate from the ROC

Not Applicable

Rs. 2000/-