The Company Fresh Start Scheme (CFSS) was introduced by the Ministry of Corporate Affairs in which an opportunity is provided to the corporate to make a new or fresh start in their life. This scheme was introduced in the year 2020. The CFSS gives a new life to the company, the scheme is applicable between the 1st of April, 2020 and the 30th of September, 2020 for the companies in default and which are inactive. The CFSS scheme extension was given by the Ministry of Corporate Affairs till the 31st of December, 2020.
The scheme applies to companies that we're unable to file the Annual Return and Financial Statements to the Ministry of Corporate Affairs. Further, it also applies to companies that have not filed e-forms like MGT-14, Form DPT-3, Form 20A, and other related forms which need to file under the ROC.
The CFSS does not apply to the companies which are under strike off. Vanishing companies and companies that are amalgamated are also not a part of it. The companies which have applied for obtaining the status for Dormant are also excluded from the benefits under the CFSS 2020.
The company gets to benefit in form of a complete waiver on penalty or Additional Fees. Further, the company is also exempted from any kind of proceedings against it for imposing a penalty. Freedom from the launch of prosecution is also an additional benefit enjoyed by the company.
Reach out to us for more information on such topics at bestlegalservices.in