The Ministry of Corporate Affairs has launched the Companies Fresh Start Scheme,2020. The reason to introduce a new scheme is to deliver relief to law-abiding companies & LLPs i.e. Limited Liability Partnership. Also, MCA revised the “LLP Settlement Scheme, 2020”. This is the third time, when the Government proposes such kind of scheme/opportunity on the demand of various stakeholder, as in the year of 2014 and 2018, the Ministry had previously proposed such kind scheme with different names like Company Law Settlement Scheme, 2014 and CODS Scheme 2018. Both the schemes incentivize agreement and decrease assent burden during the difficult time’s public health situation made by the explosion of COVID-19.
The document summarizes the process of strike off or removal of a company's name from the register of companies under the Companies Act, 2013 in India. There are two modes of strike off - by the Registrar of Companies under Section 248(1) if certain conditions are met, or by a company applying on its own under Section 248(2). The process involves issuing notices, publishing notices, restrictions on certain types of companies, effects of dissolution, penalties for fraudulent applications, and rights of appeal. The summary aims to provide a concise overview of the key details and steps involved in the strike off process for companies in India according to the Companies Act.
Strike off & Winding up as per section 248 & section 271 272 of CA, 2013 NoopurNoopur Dalal
NOTE ON POWERS OF ROC FOR STRIKING OFF/ WINDING UP OF THE COMPANY
This note has been prepared to explain the powers of ROC for striking off the company when it becomes dormant/inactive or for winding up of the company.
Strike off (easy exit) way to shut down a company (kn p partners)ADITYA PANDEY
The defunct companies are also required to comply the Company Law provisions and file requisite forms. In case of default the penalty under Act is so high. So, it is better to strike off the company, once you decide to stop the business and avoid penalty and litigation.
Recent amendments relating to charitable trust or institutionAmitJain910
The document summarizes recent amendments relating to the registration and compliance requirements for charitable trusts and institutions in India. Key points include: existing trusts must re-register by August 2020; new trusts can receive provisional registration for 3 years before applying for final registration; registrations are now valid for 5 years and must be renewed; trusts must choose between tax exemptions under sections 11/12 or 10(23C)/10(46); and failure to register or having registration cancelled can result in additional tax payments.
DISQUALIFIED DIRECTORS ANTICIPATE RELIEF FROM BOMBAY HCDishaShah147
1. The Bombay High Court has tagged all pending writ petitions regarding director disqualifications and scheduled a hearing for them on July 10, 2019.
2. In 2016, the Indian government's demonetization initiative led to the discovery of over 300,000 shell companies. As a result, the Ministry of Corporate Affairs struck over 2.17 lakh companies from the register and disqualified over 3.19 lakh individuals from directorships for failing to comply with regulations.
3. Directors can be disqualified under section 164 of the Companies Act for reasons like a company not filing financial statements or annual returns for three continuous years. Filing a writ petition with the high court or reviving the company through the
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
This document outlines the process and requirements for removing a company's name from the Register of Companies under Sections 248-252 of the Companies Act, 2013. It discusses the power of the Registrar to remove a company's name for reasonable cause, such as not commencing business within a year of incorporation or not carrying out business for two consecutive years. The process involves issuing Form STK-1 or STK-2, seeking director representations, publishing notices, and allowing for appeals. Key differences from the previous Companies Act, 1956 are also summarized, such as defining reasonable cause, requiring a special board resolution, and allowing only three years for restoration applications.
The document discusses the procedure for removing a company's name from the register of companies maintained by the Registrar of Companies (ROC). It can be done sua motu by the ROC or upon application by the company.
Key steps include the ROC serving notice to the company, publishing notices, considering any representations, intimating other authorities to seek objections, and if no objections are received within 30 days, proceeding to remove the name and publish a dissolution notice. Forms like STK-1, STK-2, STK-3 must be filed, and special resolutions, indemnity bonds, and audited financial statements need to be provided.
The document summarizes the process of strike off or removal of a company's name from the register of companies under the Companies Act, 2013 in India. There are two modes of strike off - by the Registrar of Companies under Section 248(1) if certain conditions are met, or by a company applying on its own under Section 248(2). The process involves issuing notices, publishing notices, restrictions on certain types of companies, effects of dissolution, penalties for fraudulent applications, and rights of appeal. The summary aims to provide a concise overview of the key details and steps involved in the strike off process for companies in India according to the Companies Act.
Strike off & Winding up as per section 248 & section 271 272 of CA, 2013 NoopurNoopur Dalal
NOTE ON POWERS OF ROC FOR STRIKING OFF/ WINDING UP OF THE COMPANY
This note has been prepared to explain the powers of ROC for striking off the company when it becomes dormant/inactive or for winding up of the company.
Strike off (easy exit) way to shut down a company (kn p partners)ADITYA PANDEY
The defunct companies are also required to comply the Company Law provisions and file requisite forms. In case of default the penalty under Act is so high. So, it is better to strike off the company, once you decide to stop the business and avoid penalty and litigation.
Recent amendments relating to charitable trust or institutionAmitJain910
The document summarizes recent amendments relating to the registration and compliance requirements for charitable trusts and institutions in India. Key points include: existing trusts must re-register by August 2020; new trusts can receive provisional registration for 3 years before applying for final registration; registrations are now valid for 5 years and must be renewed; trusts must choose between tax exemptions under sections 11/12 or 10(23C)/10(46); and failure to register or having registration cancelled can result in additional tax payments.
DISQUALIFIED DIRECTORS ANTICIPATE RELIEF FROM BOMBAY HCDishaShah147
1. The Bombay High Court has tagged all pending writ petitions regarding director disqualifications and scheduled a hearing for them on July 10, 2019.
2. In 2016, the Indian government's demonetization initiative led to the discovery of over 300,000 shell companies. As a result, the Ministry of Corporate Affairs struck over 2.17 lakh companies from the register and disqualified over 3.19 lakh individuals from directorships for failing to comply with regulations.
3. Directors can be disqualified under section 164 of the Companies Act for reasons like a company not filing financial statements or annual returns for three continuous years. Filing a writ petition with the high court or reviving the company through the
The document provides an overview of public issue of debentures by companies in India. It defines debentures and various types of debentures. It discusses the process of public issue of debentures which requires issue of a prospectus, appointment of a debenture trustee, creation of debenture redemption reserve, and compliance with various other statutory requirements. It also describes different types of prospectus that can be issued for public offer of debentures and exceptions available for certain companies.
This document outlines the process and requirements for removing a company's name from the Register of Companies under Sections 248-252 of the Companies Act, 2013. It discusses the power of the Registrar to remove a company's name for reasonable cause, such as not commencing business within a year of incorporation or not carrying out business for two consecutive years. The process involves issuing Form STK-1 or STK-2, seeking director representations, publishing notices, and allowing for appeals. Key differences from the previous Companies Act, 1956 are also summarized, such as defining reasonable cause, requiring a special board resolution, and allowing only three years for restoration applications.
The document discusses the procedure for removing a company's name from the register of companies maintained by the Registrar of Companies (ROC). It can be done sua motu by the ROC or upon application by the company.
Key steps include the ROC serving notice to the company, publishing notices, considering any representations, intimating other authorities to seek objections, and if no objections are received within 30 days, proceeding to remove the name and publish a dissolution notice. Forms like STK-1, STK-2, STK-3 must be filed, and special resolutions, indemnity bonds, and audited financial statements need to be provided.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. A foreign company may carry on business in Singapore by transferring that Company’s registration from foreign country to Singapore or by registering the branch of the foreign Company in Singapore. In this webinar, transfer of registration of foreign corporate entity to Singapore is covered. The provisions of Transfer of Registration are governed by Part XA of the Act read with Companies (Transfer of Registration) Regulations 2017.
This document summarizes key provisions around the registration of charges under the Singapore Companies Act. It discusses the duty of companies to register existing and new charges, what types of charges require registration, timelines for registration, details to be included in the register of charges maintained by the Registrar, rectification of errors or omissions, and penalties for non-compliance. The document is divided into sections that correspond to relevant sections of the Companies Act, with each section outlining requirements, exceptions, and consequences related to the registration of charges on company property.
Objectives & Agenda :
One of the major forms of organisation is a company, having separate legal entity. It has several benefits as compared with other forms of business organisations. The process of incorporating a company has become seamless in line with ‘ease of doing business’ in India. The webinar shall cover the changes in the procedural aspects relating to incorporation of a company to simplify the process. The webinar shall also focus on the single form for company incorporation, practical issues and challenges in formation of a company.
These amendments redefine the scope and administration of the Economic Substance regime in the UAE, subject to a retrospective effect from 1st January 2019.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
Appointment and qualifications of directorskushGupta65
DIRECTOR IDENTIFICATION NUMBER (DIN) [SECTION 152 (3) AND SECTIONS 153 TO 159]
“Director Identification Number” (DIN)5: DIN means an identification number allotted by the Central Government to any individual, intending to be appointed as director or to any existing director of a company, for the purpose of his identification as a director of a company.
- The document is an order from the Ministry of Corporate Affairs in India establishing the Companies (Auditor's Report) Order, 2016, which specifies matters that must be addressed in audit reports for certain types of companies.
- It supersedes the previous Companies (Auditor's Report) Order from 2015 and applies to most types of companies except for things like banking, insurance, and some smaller private companies.
- The order lists 16 matters that must be included in the auditor's report, covering issues like maintenance of asset records, loans to other parties, statutory dues, fraud, and transactions with related parties.
Lawyer in Vietnam Oliver Massmann Legal Update October 2015Dr. Oliver Massmann
The document summarizes several new Vietnamese legal decrees and an official letter:
1. Decree 96 provides guidelines on social enterprises, enterprise seals, cross-ownership between enterprises, and state agency liabilities.
2. Decree 83 details offshore investment registration procedures and allows investors to send funds overseas before receiving certificates.
3. Decree 91 addresses state capital investment scales in certain fields and restrictions on contributions to real estate, banking, and other sectors.
Start ups and MSMEs: Registration and Advantages features of Atmanirbhar packageNovojuris
Startups and MSMEs can register on relevant government portals to receive several benefits. Startups must register within 10 years of formation and have annual turnover less than Rs. 100 crore to qualify for benefits like income tax exemptions, self-certification under labour laws, stock options for founders. MSMEs must register based on investment and turnover limits set for micro, small and medium enterprises to prevent delayed payments and access collateral-free loans. The document outlines the registration processes and documents required for each as well as their key benefits.
Objective and Agenda:
In order to bring flexibility and to monitor the activities of the charitable organisations in India, non-governmental organisations are given the corporate status by forming companies under Section 8 of the Companies Act, 2013. The scope of the webinar is to cover the objects of forming a Section 8 Company, procedure to obtain license, benefits of forming a Section 8 Company, conversion of Section 8 Company into any other company, effects of non-compliance of objects and the tax benefits available to such companies.
Action Points for Listed Companies under Companies Act, 2013SASPARTNERS
Write up on the Action Points for Listed Companies under Companies Act, 2013 is prepared by SAS Partners Team to give a bird eye view of all the important provisions which a Listed Company has to take into consideration in the Board Meeting of the first quarter of the Financial Year 2014-15 or subsequent Board Meeting. The write up shall be helpful for Professional, Corporates and Students at large. SAS Partners Team has considered the provisions which were applicable as on date and due care has been taken to prepare the write up.
Understanding the Recent Developments in taxation of charitable & religious t...Taxmann
OVERVIEW OF NEW SCHEME OF REGISTRATION.
1. Under the existing law, NGOs are required to get registered under section 12A/12AA or to obtain approval under
section 10(23) to claim various exemptions and under Section, 80G to provide deductions to donors.
2. The Finance Act 2020 has introduced substantial changes to the provisions of registration of NGOs. A new section 12AB replaces the existing section 12AA. Similar amendments have been made to section 10(23C) and Section 80G. These changes are effective from 1st June 2020.
3. Registration and approvals of NGOs shall be completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions.
4. NGOs registered prior to 01-06-2020 are required to make an application again under a new scheme of registration.
5. The concept of the perpetuity of registration is withdrawn under the new scheme. The registration under a new scheme
shall be valid for a specified period, that is, up to 3 years for provisional cases and a maximum period of 5 years for
final registration.
6. Registration is required to be renewed every 5 years.
Concept of provisional registration introduced for new charity institutions that are yet to start their charitable activities.
This document discusses the Companies Auditor's Report Order, 2016 and provides guidance on its applicability and the matters to be reported by auditors. It specifies that the order is applicable to all companies except for banking, insurance, Section 8, OPCs, small and select private companies. It outlines the regulatory framework and illustrates examples of companies that would be subject to the order. It provides the general approach auditors should take and notes the matters that must be included in the audit report such as fixed assets, inventory, loans, deposits, cost records, statutory dues and others.
Objectives & Agenda :
One of the primary and popular forms of raising money by a public company is by way of offer of securities to public. Private Companies are prohibited to invite the public to subscribe for any securities of the company. Such issue enables a company to raise funds from large number of investors. The webinar covers the aspects of overview on public issue, issue of prospectus, various types of prospectus, statutory provisions in the Companies Act, 2013, compliance aspects and judicial precedents.
This document outlines various compliance requirements and deadlines for filing forms under the Companies Act, 2013. It lists 23 different forms that must be filed for events like changes to a company's registered office, allotment of securities, annual returns, financial statements, appointment of directors, and more. The deadlines for filing these forms range from 15 days to 60 days after the relevant event occurs. Failure to meet these deadlines to file the required forms can result in penalties for the company.
The document discusses the Federal Land Consolidation and Rehabilitation Authority (FELCRA Berhad) in Malaysia. It was established in 1966 to help rural communities participate in the national economy and improve their standard of living. On September 1, 1997 it was corporatized and renamed FELCRA Berhad, making it a fully government-owned company rather than a statutory body. This change allows it to explore new business opportunities in line with national development goals.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
Ruth Silver Taube, Supervising Attorney. Katharine & George Alexander Community Law Center. Special Counsel. Legal Aid at Work. In collaboration with the Office of Immigrant Relations and The Rapid Response Network.
- Director Identification Number (DIN) is a unique identification number given to directors of companies in India.
- Every individual who is appointed as a director of a company must obtain a DIN by submitting an application to the Central Government.
- If there are any changes to the director's particulars submitted for DIN allotment, the director must notify the Central Government within 30 days using Form DIR-6. The Central Government will then update the director's records after verification.
The Ministry of Corporate Affairs has introduced Companies Fresh Start Scheme, 2020 commences on 01.04.2020 and will last upto 30.09.2020 that enables companies who had made defaults in filing of necessary forms and documents prior to the scheme to make good all its filing related compliances and enjoy the status of compliant companies in so far as it relates to filing of forms and documents with MCA 21. This scheme has been introduced with the purpose of providing a fresh opportunity to start as a fully compliant entity.
The Companies Fresh Start Scheme 2020 provides relief to defaulting companies and inactive companies. It allows defaulting companies to file overdue documents without paying additional fees and provides immunity from prosecution for delays, with some exceptions. Inactive companies can apply to be declared dormant or seek removal from the register. The scheme applies through an electronic CFSS-2020 form and does not require professional certification. It does not apply in cases involving court orders or applications for striking off or dormancy already made.
OBJECTIVE
Companies in Singapore are governed by the laws of Companies Act (the Act), originally enacted in 1967 and which has undergone significant amendments in 2014 and 2017. The Accounting and Corporate Regulatory Authority (ACRA) is the national regulator of business entities and corporate service providers in Singapore. A foreign company may carry on business in Singapore by transferring that Company’s registration from foreign country to Singapore or by registering the branch of the foreign Company in Singapore. In this webinar, transfer of registration of foreign corporate entity to Singapore is covered. The provisions of Transfer of Registration are governed by Part XA of the Act read with Companies (Transfer of Registration) Regulations 2017.
This document summarizes key provisions around the registration of charges under the Singapore Companies Act. It discusses the duty of companies to register existing and new charges, what types of charges require registration, timelines for registration, details to be included in the register of charges maintained by the Registrar, rectification of errors or omissions, and penalties for non-compliance. The document is divided into sections that correspond to relevant sections of the Companies Act, with each section outlining requirements, exceptions, and consequences related to the registration of charges on company property.
Objectives & Agenda :
One of the major forms of organisation is a company, having separate legal entity. It has several benefits as compared with other forms of business organisations. The process of incorporating a company has become seamless in line with ‘ease of doing business’ in India. The webinar shall cover the changes in the procedural aspects relating to incorporation of a company to simplify the process. The webinar shall also focus on the single form for company incorporation, practical issues and challenges in formation of a company.
These amendments redefine the scope and administration of the Economic Substance regime in the UAE, subject to a retrospective effect from 1st January 2019.
The document summarizes recent updates to the Companies Act 2013 in India, including increasing the threshold for mandatory appointment of a Company Secretary to Rs. 10 crores, expanding requirements for secretarial audit reports, introducing new forms like SPICe+ for easier incorporation, extending various filing timelines due to COVID-19, and allowing meetings to be conducted virtually.
Appointment and qualifications of directorskushGupta65
DIRECTOR IDENTIFICATION NUMBER (DIN) [SECTION 152 (3) AND SECTIONS 153 TO 159]
“Director Identification Number” (DIN)5: DIN means an identification number allotted by the Central Government to any individual, intending to be appointed as director or to any existing director of a company, for the purpose of his identification as a director of a company.
- The document is an order from the Ministry of Corporate Affairs in India establishing the Companies (Auditor's Report) Order, 2016, which specifies matters that must be addressed in audit reports for certain types of companies.
- It supersedes the previous Companies (Auditor's Report) Order from 2015 and applies to most types of companies except for things like banking, insurance, and some smaller private companies.
- The order lists 16 matters that must be included in the auditor's report, covering issues like maintenance of asset records, loans to other parties, statutory dues, fraud, and transactions with related parties.
Lawyer in Vietnam Oliver Massmann Legal Update October 2015Dr. Oliver Massmann
The document summarizes several new Vietnamese legal decrees and an official letter:
1. Decree 96 provides guidelines on social enterprises, enterprise seals, cross-ownership between enterprises, and state agency liabilities.
2. Decree 83 details offshore investment registration procedures and allows investors to send funds overseas before receiving certificates.
3. Decree 91 addresses state capital investment scales in certain fields and restrictions on contributions to real estate, banking, and other sectors.
Start ups and MSMEs: Registration and Advantages features of Atmanirbhar packageNovojuris
Startups and MSMEs can register on relevant government portals to receive several benefits. Startups must register within 10 years of formation and have annual turnover less than Rs. 100 crore to qualify for benefits like income tax exemptions, self-certification under labour laws, stock options for founders. MSMEs must register based on investment and turnover limits set for micro, small and medium enterprises to prevent delayed payments and access collateral-free loans. The document outlines the registration processes and documents required for each as well as their key benefits.
Objective and Agenda:
In order to bring flexibility and to monitor the activities of the charitable organisations in India, non-governmental organisations are given the corporate status by forming companies under Section 8 of the Companies Act, 2013. The scope of the webinar is to cover the objects of forming a Section 8 Company, procedure to obtain license, benefits of forming a Section 8 Company, conversion of Section 8 Company into any other company, effects of non-compliance of objects and the tax benefits available to such companies.
Action Points for Listed Companies under Companies Act, 2013SASPARTNERS
Write up on the Action Points for Listed Companies under Companies Act, 2013 is prepared by SAS Partners Team to give a bird eye view of all the important provisions which a Listed Company has to take into consideration in the Board Meeting of the first quarter of the Financial Year 2014-15 or subsequent Board Meeting. The write up shall be helpful for Professional, Corporates and Students at large. SAS Partners Team has considered the provisions which were applicable as on date and due care has been taken to prepare the write up.
Understanding the Recent Developments in taxation of charitable & religious t...Taxmann
OVERVIEW OF NEW SCHEME OF REGISTRATION.
1. Under the existing law, NGOs are required to get registered under section 12A/12AA or to obtain approval under
section 10(23) to claim various exemptions and under Section, 80G to provide deductions to donors.
2. The Finance Act 2020 has introduced substantial changes to the provisions of registration of NGOs. A new section 12AB replaces the existing section 12AA. Similar amendments have been made to section 10(23C) and Section 80G. These changes are effective from 1st June 2020.
3. Registration and approvals of NGOs shall be completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions.
4. NGOs registered prior to 01-06-2020 are required to make an application again under a new scheme of registration.
5. The concept of the perpetuity of registration is withdrawn under the new scheme. The registration under a new scheme
shall be valid for a specified period, that is, up to 3 years for provisional cases and a maximum period of 5 years for
final registration.
6. Registration is required to be renewed every 5 years.
Concept of provisional registration introduced for new charity institutions that are yet to start their charitable activities.
This document discusses the Companies Auditor's Report Order, 2016 and provides guidance on its applicability and the matters to be reported by auditors. It specifies that the order is applicable to all companies except for banking, insurance, Section 8, OPCs, small and select private companies. It outlines the regulatory framework and illustrates examples of companies that would be subject to the order. It provides the general approach auditors should take and notes the matters that must be included in the audit report such as fixed assets, inventory, loans, deposits, cost records, statutory dues and others.
Objectives & Agenda :
One of the primary and popular forms of raising money by a public company is by way of offer of securities to public. Private Companies are prohibited to invite the public to subscribe for any securities of the company. Such issue enables a company to raise funds from large number of investors. The webinar covers the aspects of overview on public issue, issue of prospectus, various types of prospectus, statutory provisions in the Companies Act, 2013, compliance aspects and judicial precedents.
This document outlines various compliance requirements and deadlines for filing forms under the Companies Act, 2013. It lists 23 different forms that must be filed for events like changes to a company's registered office, allotment of securities, annual returns, financial statements, appointment of directors, and more. The deadlines for filing these forms range from 15 days to 60 days after the relevant event occurs. Failure to meet these deadlines to file the required forms can result in penalties for the company.
The document discusses the Federal Land Consolidation and Rehabilitation Authority (FELCRA Berhad) in Malaysia. It was established in 1966 to help rural communities participate in the national economy and improve their standard of living. On September 1, 1997 it was corporatized and renamed FELCRA Berhad, making it a fully government-owned company rather than a statutory body. This change allows it to explore new business opportunities in line with national development goals.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
Ruth Silver Taube, Supervising Attorney. Katharine & George Alexander Community Law Center. Special Counsel. Legal Aid at Work. In collaboration with the Office of Immigrant Relations and The Rapid Response Network.
- Director Identification Number (DIN) is a unique identification number given to directors of companies in India.
- Every individual who is appointed as a director of a company must obtain a DIN by submitting an application to the Central Government.
- If there are any changes to the director's particulars submitted for DIN allotment, the director must notify the Central Government within 30 days using Form DIR-6. The Central Government will then update the director's records after verification.
The Ministry of Corporate Affairs has introduced Companies Fresh Start Scheme, 2020 commences on 01.04.2020 and will last upto 30.09.2020 that enables companies who had made defaults in filing of necessary forms and documents prior to the scheme to make good all its filing related compliances and enjoy the status of compliant companies in so far as it relates to filing of forms and documents with MCA 21. This scheme has been introduced with the purpose of providing a fresh opportunity to start as a fully compliant entity.
The Companies Fresh Start Scheme 2020 provides relief to defaulting companies and inactive companies. It allows defaulting companies to file overdue documents without paying additional fees and provides immunity from prosecution for delays, with some exceptions. Inactive companies can apply to be declared dormant or seek removal from the register. The scheme applies through an electronic CFSS-2020 form and does not require professional certification. It does not apply in cases involving court orders or applications for striking off or dormancy already made.
What are the salient features of CFSS, 2020 and LLP Settlement Scheme, 2020?DVSResearchFoundatio
OBJECTIVE
In order to make a fresh start on a clean state, Ministry of Corporate Affairs (MCA) vide circulars issued in March, 2020 has taken certain alleviative measures by introducing the Companies Fresh Start Scheme, 2020. Further, to promote ease of doing business, MCA has given relaxation in additional fees with respect to filing of pending documents with MCA by defaulting LLPs by introducing LLP Settlement Scheme, 2020. These Schemes act as relief to defaulting Companies / LLPs by mitigating their financial burden and giving them an opportunity to make a fresh start. In this webinar, we shall understand the salient features of these Schemes including their objective, applicability and the effect of immunity.
The document discusses the Company Law Settlement Scheme 2010 (CLSS 2010) which provides options for dormant or defunct companies to either regularize operations or get removed from the system. Under the scheme, defaulting companies can receive concessions on additional filing fees and immunity from prosecution for late filings if they meet certain conditions by the August 31, 2010 deadline.
Aera note cfss 2020_ opportunity for defaulter organizationvikash parakh
The Government has issued a circular (Notification No. 12/2020 dated 30th March 2020) with a view to reduce compliance burden on corporates due to the disruption caused by Covid-19 and to enable companies to make a fresh start, introduced the "Companies Fresh Start Scheme 2020" which applies to companies. The Scheme gives a one-time opportunity to all defaulting companies to complete their pending filings, if any, under the Companies Act, 1956 / Companies Act, 2013 (Companies Act), during the period 1st April 2020 to 30th September 2020, without payment of any additional fee and to get immunity from related prosecutions.
At Aera, we believe that this circular is a pivotal move by MCA Where it is providing a chance of lifetime to clear all the backlogs created by the companies and come out of the web and fear of non -compliance.
Please find the attached note to help you with the proposed scheme.
At Aera, we can assist with the implementation of the compliant program & happy to a part of your progress forever.
Comprehensive analysis of strike off under companies act, 2013 jayjani123
The Ministry of Corporate Affairs ("MCA") vide Notification1 dated 26.12.2016 notified Section 248 to 252 of the Companies Act, 2013 ("Act") and revised the process of striking off the name of the company from the register of companies maintained by the Registrar of Companies ("ROC").
The procedure of strike off the name of company through the Fast Track Exit ("FTE") mode under the provisions of section 560 of the Companies Act, 1956 stands revised and accordingly, the "Strike Off" mode was introduced by the MCA vide said notification.
The provisions relating to Strike Off provide an opportunity to the defunct companies to get their names struck off from the records of the ROC.
The document summarizes recent updates to corporate and LLP laws in India in response to COVID-19. It outlines two new schemes - the Companies Fresh Start Scheme, 2020 which gives defaulting companies a chance to file overdue documents by September 2020 with normal fees, and the LLP Settlement Scheme, 2020 which allows defaulting LLPs to file certain overdue documents by September 2020 with reduced fees and immunity from prosecution. It also lists relaxations provided by SEBI and stock exchanges to reduce compliance burdens during the pandemic.
This document outlines the process and requirements for a company to obtain the status of a dormant company under Indian law.
1) A company not actively conducting business or accounting transactions can apply to ROC for dormant status using Form MSC-1.
2) If approved, ROC will issue a certificate in Form MSC-2 designating the company as dormant.
3) ROC must maintain a register of dormant companies and may designate a company dormant if it has not filed financial statements or annual returns for two consecutive years.
Recent development in the companies act 2013KhushiVijay5
The document discusses several key amendments made to the Companies Act through recent ordinances. Some key changes include allowing companies more flexibility in holding annual general meetings, increasing the timeframe to update a registered office, removing imprisonment as punishment for certain offenses and instead imposing financial penalties, relaxing rules around director loans and remuneration, and delegating more powers from the NCLT to regional authorities to help de-clog the system. The changes aim to make compliance easier for companies while still promoting transparency and investor protection.
Listed companies,
Companies delisted due to non-compliance,
Vanishing companies,
Companies under inspection and investigation,
Notice issued by RoC / Inspector and pending for reply under S.206 or S.207,
The document provides guidance on preparing a prospectus when issuing shares or securities to the public. It explains that a prospectus must be approved by regulatory authorities, include specific required information, and be registered before the company can issue shares. The prospectus format is regulated and it must not omit any material details to prevent misleading investors.
The document provides guidance on preparing a prospectus when issuing shares or securities to the public. It explains that a prospectus must be approved by regulatory authorities, include specific required information, and be registered before the company can issue shares. The prospectus format is regulated and it must not omit any material details to prevent misleading investors.
The document provides guidance on preparing a prospectus when issuing shares or securities to the public. It explains that a prospectus must be approved by regulatory authorities, include specific required information, and be registered before the company can issue shares. The prospectus format is regulated and it must not omit any material details to prevent misleading investors. It also discusses related terms like red herring prospectus, shelf prospectus, and statement in lieu of prospectus.
The notification provides rules for companies to obtain the status of a dormant company under the Companies Act, 2013. Key points:
- A company can apply to the Registrar for dormant status by filing Form MSC-1 along with fees. It must pass a special board and shareholder resolution.
- To be eligible, the company cannot have any ongoing legal proceedings, defaults, loans or assets/liabilities. It must have no business operations or transactions for the past 2 years.
- The Registrar can grant a certificate in Form MSC-2 confirming dormant status. A dormant company must file an annual return and have a minimum of 1-3 directors depending on company type
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MCA INTRODUCES COMPANIES FRESH
START SCHEME, 2020 (CFFS-2020)
The Ministry of Corporate Affairs has launched the Companies Fresh Start Scheme,2020. The
reason to introduce a new scheme is to deliver relief to law-abiding companies & LLPs
i.e. Limited Liability Partnership. Also, MCA revised the “LLP Settlement Scheme, 2020”. This is
the third time, when the Government proposes such kind of scheme/opportunity on the
demand of various stakeholder, as in the year of 2014 and 2018, the Ministry had previously
proposed such kind scheme with different names like Company Law Settlement Scheme, 2014
and CODS Scheme 2018. Both the schemes incentivize agreement and decrease assent burden
during the difficult time’s public health situation made by the explosion of COVID-19.
WHAT IS THE COMPANIES FRESH START SCHEME,2020?
The new scheme CFSS-2020 is initiated for an initial period of 6 months i.e. 01.04.2020 till
30.09.2020. As per the mentioning in its General Circular No.12/2020 on the 30th of March
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2020. This is an opportunity for all defaulted companies along with inactive companies to file all
overdue documents as freshly started documents, not including any additional fees.
Hereby Defaulting company means a company established under the Companies Act, 2013.
That has caused a default in filing of any of the documents, statements, returns, etc. That also
includes annual statutory documents (AOC-4 & MGT- 7) on the MCA-21 registry on due time.
HIRE CA NEAR YOU
Inactive Company means a company which has not been carrying on any marketing or
operation or has not made any important accounting transaction throughout the last 2 financial
years. Also, the companies that have not filed financial statements and annual returns during
the last 2 financial years.
Both of them have a great opportunity to do so.
READ MORE- ALL ABOUT CA SERVICES
IMPORTANT DEFINITIONS UNDER THE SCHEME
“Act” means the Companies Act, 2013 and Companies Act, 1956 (where ever applicable);
“Company” means a company as described in clause (20) of section 2 of the Companies Act,
2013.
“Defaulting company” means a company established under the Companies Act, 2013, and
which has created a default in filing of any of the documents, statements, returns, etc including
annual statutory documents on the MCA-21 registry.
“Designated authority” means the Registrar of Companies (ROC) having control over the
registered office of the company.
“Immunity certificate” means the certificate is issued by the DA after getting into
consideration the declaration made in the Form CFSS-2020.
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ELIGIBILITY UNDER THE SCHEME
This Scheme applies to any “Defaulting Company”. It shall be initiated from 01st of April, 2020
till the 30th of September, 2020. In this all the mentioned people are allowed to file all overdue
documents which were due for filing without any Extra Fees except 2 documents and out of
which, some permitted documents are as follows:
Annual based Forms:
Annual Return -MGT-7
Financial Statements – AOC-4
Event-based Forms:
INC-22A (Active Company Tagging Identities and Verification (ACTIVE))
INC-20A (Declaration for the start of business)
PAS-3 (return of Allotment)
ADT-1 (Appointment of Auditor)
MGT-14 (Enrolling of Resolutions and agreements to the Registrar)
DIR-12 (Details of appointment of Directors and the important managerial personnel and the
differences among them).
Two Exceptions which is out of the purview of this Scheme:
Increase in Authorised Share Capital (SH-7)
Charger related documents (CHG-1, CHG-4, CHG-8, and CHG-9)
CONDITIONS UNDER WHICH CFSS-2020 ISN’T APPLICABLE
CFSS-2020 must not apply under the following cases:
ROC has previously issued the Final Notice for striking off the Company’s name under Section
248 of Companies Act, 2013.
The Company has registered an Application STK-2 for striking off its name with ROC.
Companies merge under the Compromise and Arrangement Scheme.
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A Company that has involved to get dormant status under Section 455 of Companies Act, 2013,
prior to the CFSS-2020 scheme introduction.
Vanishing Companies
Companies having a pending appeal before the Court of Law.
Companies with management conflict pending before Tribunal or Court.
A Company that was condemned by the Court and no appeal was favored upon such order of
the Court before CFSS-2020 came into force.
A Company that was condemned by an Adjudication Authority and no appeal was favored upon
it before CFSS-2020 came into effect.
MANNER OF PAYMENT OF A NORMAL FEE FOR THE FILING OF
OVERDUE DOCUMENTS AND SOLICITING IMMUNITY UNDER THE
SCHEME –
All defaulting companies must need to pay normal fees as directed under the Companies
(Registration Offices and Fee) Rules, 2014 on the date of filing of all late documents and no
extra fee shall be payable. Immunity from the launch of prosecution or proceedings for
imposing a penalty shall be given only to the extent such prosecution or the proceedings for
imposing a fine under the Act concern to any delay linked with the filings of overdue
documents. Any other important proceedings, including any proceedings including interests of
any shareholder or any other person qua the company or its directors or key managerial staff,
would not be included by such immunity.
WITHDRAWALS APPEAL IF ANY
Withdrawal of appeal upon any prosecution launched or the procedures for forcing penalties
initiated- If the defaulting company, concerning any statutory filing under the Act or its officer
in default. As it has filed any appeal upon any notice circulated or complaint filed or an order
given by a court or by an adjudicating authority under the Act. Before a competent court or
authority for disrespecting of the provisions under the Companies Act, 1956 of Companies Act,
2013. In respect of that, the application is made under this scheme, the candidate shall before
applying to issue of immunity certificate, withdraw the appeal and provide proof of such
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withdrawal along with the application.
If an application is registered upon any notice, complaint or order before any competent
authority by the defaulting company or its officer in default, then such applications are to be
withdrawn by the candidate before filing any application for immunity certificate and provide
the proof of such withdrawal along with the application.
SPECIFIC MEASURES FOR SITUATIONS WHERE THE ORDER OF THE
ADJUDICATING AUTHORITY WAS PASSED BUT THE APPEAL COULD
NOT BE FILED-
As on the date of start of the Scheme, the following would apply:-
Where the closing date for filing the appeal upon the order of the adjudicating authority under
section 454(6) falls within the 1st March 2020 to 31st May 2020. A period of 120 extra days
shall be allowed with effect from such an end date to all companies and their officers for
applying the request with the concerned Regional Directors.
During such extra period as stated in point 1, prosecution under section 454(8) for non-
compliance of the order of the judicial authority, insofar as it links to delay linked in the filing of
any document, statement or return, etc in the MCA-21 registry must not be launched against
such companies or their officers.
APPLICATION FOR ISSUE OF IMMUNITY
Application for issue of immunity in respect of document(s) filed under the Scheme- The
application for getting immunity in respect of overdue documents filed under the Scheme may
be made electronically in the Form CFSS-2020. After the closure of the Scheme and after the
document(s) arc taken on the file, or record or authorized by the Designated authority as the
case may be but not after the expiry of 6 months from the date of closure of the Scheme. There
must not be any fee payable on this Form.
Given that this immunity shall not be relevant in the matter of any appeal pending before the
court of law. In case of control disputes of the company pending before any court of law.
Also, given that no immunity must be rendered in case any court has settled belief in any
matter, or an order forcing penalty has been passed by a judicial authority under the Act, and
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no appeal has been favored upon such orders of the court or the judging officials, as the case
may be before this Scheme has evolved into power.
ORDER BY THE SELECTED AUTHORITY GIVING IMMUNITY FROM
PENALTY AND PROSECUTION –
Based on the statement made in the Form CFSS-2020, an immunity certificate in respect of
documents registered under this Scheme must be circulated by the nominated authority. The
immunity certificate must be allotted by the DA after taking into consideration the declaration
given in the Form CFSS-2020.
EFFECT OF IMMUNITY
After giving the immunity, the Nominated authority involved must withdraw the prosecution
pending, if any, before the concerned Court and the proceedings of adjudication of fines under
section 454 of the Act. In respect of errors upon which immunity has been so given shall be
deemed to have been completed without any additional action on the part of the Designated
Authority.
Condonation of all Extra fee for the filing of Overdue documents.
Giving of Immunity from the Prosecution.
Allowing of Immunity from the Proceedings for forcing a fine.
ROC must withdrawal all proceedings of adjudication of fines u/s 454.
SCHEME FOR INACTIVE COMPANIES-
The defaulting inactive companies, while registering due documents under
CFSS-2020 can, together, either:
Appeal to get themselves listed as Dormant Company under section 455 of the Companies Act,
2013 by registering e- form MSC-1 at a normal fee on said form.
Appeal for striking off the name of the company by registering e-Form STK-2 by giving the fee
payable.
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PROVISIONS OF CFSS, 2020:
Under the CFSS 2020 scheme, any company which has left to file the Annual Returns and
Financial Statements or any return or form which are administered under section 403 of the Act.
Then such defaulting companies can register such overdue documents in the MCA-21 registry at
a nominal fee as directed under the Companies (Registration and Office) Rules, 2014 with the
ROC. During the currency of the CFSS 2020 i.e. with impact from 1st April 2020 to 30th
September 2020.
The defaulting stable companies can also together apply for getting dormant status under the
terms of section 455 of the Act. Even apply for resisting off the name of the company by filing e-
form STK-2, by giving the normal fees as applicable under the Act.
On the finish of CFSS 2020 on 30th September 2020, CFSS-2020 e-form will be available for
filing for companies availing benefit under the scheme and an immunity certificate will be
circulated by the MCA.
The CFSS 2020 does not apply to companies stroke off by ROC under section 248.
It’s a great opportunity for all the defaulters to refer to this scheme for their betterment and
the demand for stakeholders this scheme was introduced by MCA. For more updates, stay
connected with LegalPillers.
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fresh-start-scheme-2020