The ministry of corporate affairs (MCA) has launch Companies Fresh Start Scheme, 2020 (CFSS) which defines that there is a revival of the strike-off company without fee of roc penalty (Registrar of Companies) and also considered for removal of Directors Disqualification in their new notification. Before it, most of the existing companies facing the problem due to strike off under Section 164 of the Companies Act, 2013, it is the golden opportunity for every private limited company to grow and expand in an effective way. |
Contents in the Company Fresh Start Scheme 2020
On 1 April 2020 to 30 September 2020, the higher authority has decided to organize company fresh start scheme. It offers companies the opening of a one-time application of condonation of suspension of filling the different documents, forms, returns, etc. The most significant benefit for companies will be that by availing this scheme, they will get the recovery of the strike-off company without fee or RoC penalty.
Advantages for Struck Off Companies
To bring about the provision of CFSS, 2020, MCA has come out with so many opportunities for Struck off companies –
• No fee charged on this appropriate form. • Will get assurance for six months after the date of closure of the CFSS 2020. • Will get the designated authority will pass the security Certificate. • This scheme mandates that the financial burden on such companies reduced, and a company is authorized to file annual returns for 3 to 4 years without penalty.
Removal of Directors for Disqualification
MCA has disqualified directors that failed to comply with the regulations stated under section 164(2) and 167(1)(a), and after the procedure, many aggrieved directors and company started protest or trying to clarify for the same. As a result, the ministry came out with the ‘Condonation of Delay Scheme’, where it gives a chance to file the needed documents.
CFSS 2020 is Not Appropriate if:
• The final announcement for removing the company name from The Companies Act 2013 has already been issued by the concerned authority. • If the company has already appealed for removing the name of the company with prescribed fees with Registrar of Companies (RoC). • Companies have merged under some arrangement or compromise. • Insolvency of the company • Companies that are listed for the Corporate Insolvency
Read more about the recovery of the strike-off company...
If you are a struck-off company, do not let this golden chance for reviving your company today will mean that will get the recovery of the strike-off company without fee of RoC penalty.
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