Companies fresh start scheme

Definitions:

In this scheme, unless the context otherwise requires,

  • Act – means the “Companies Act, 2013” and “Companies Act, 1956” (wherever applicable).
  • Company – means a company as defined in clause (20) of section 2 of the Companies Act, 2013.
  • Defaulting Company – means a company defined under the Companies Act, 2013 and which has made a default in filing of any documents, statements, returns, etc,. including annual statutory documents on the MCA-21 registory.
  • Designated Authority – means the Registrar of Companies having jurisdiction over the registered office of the company.
  • Inactive Company – means a company as defined in section(1)(i) of the Companies Act, 2013.

Applicability:

Any “defaulting company” is committed to file belated documents which were due for filing on any given date in accordance with the provisions of this scheme.

Manner of payment of normal fees for  filing of belated documents and seeking immunity under the scheme:

Every defaulting company shall be required to pay normal fees as prescribed under the Companies (Registration Offices and Fees) Rules, 2014 on the date of filing of each belated document and no additional fee shall be payable. Immunity from the launch of prosecution or proceedings for imposing penalty shall be provided only to the extent such prosecution or proceedings for imposing penalty under the act pertain to any delay associated with the filings of belated documents. Any other consequential proceedings including any proceedings involving interests of any shareholder or any other person qua the company or its directors or key managerial personnel would not be covered by such immunity.

Effect of immunity:

After granting the immunity, the Designated Authority concerned shall withdraw the prosecution(s) pending, if any, before the concerned court(s) and the proceedings of adjudication of penalties under section 454 of the act other than those specifically referred in the scheme, in respect of defaults against which immunity has been so granted shall be deemed to have been completed without any further action on the part of the Designated Authority.