News 3

Govt. Extended Time under Companies Fresh Start Scheme, 2020 upto 31.12.2020:

Ministry of Corporate Affairs (MCA), Govt of India has announced a scheme known as “Companies Fresh Start Scheme, 2020”  (The Scheme). This Scheme was earlier valid from 01.04.2020 to 30.09.2020. The applicability of the scheme has now been extended upto 31.12.2020.

It may be noted that that registered Companies under Companies Act, 2013 are required to file forms/ returns/ documents within specified time as directed by under the Companies act, 2013. Any delay in filing of such forms/ returns/ documents attracts additional fee & penalties. Such Companies are categorized as ‘Defaulting Companies’.

MCA vide this “Companies Fresh Start Scheme, 2020” has allowed  One-time condonation of delay in filing forms/ returns/ documents as specified under the Scheme. Such companies under the Scheme are required  to pay only the normal  fee  that are prescribed by the Companies                    (Registration Offices & Fee) Rules, 2014.  No additional fee shall be payable. Also  Immunity from launch of  prosecution or proceedings for imposing penalty shall be provided as provided in the Scheme.

This Scheme also provides relief to the inoperative Companies called “Dormant Companies” from the strict compliance  of the Companies Act, 2013 and rules made thereunder.