ICAI FAQs on the Companies Fresh Start Scheme 2020

FAQs on the Companies Fresh Start Scheme

The Ministry of Corporate Affairs in pursuance of the Government of India’s efforts to provide relief to law abiding companies and Limited Liability Partnerships (LLPs) in the wake of COVID 19, has introduced the “Companies Fresh Start Scheme, 2020”

Further, the scheme gives an opportunity to inactive companies to get their companies declared as ‘dormant company’ under section 455 of the Act by filing a simple application at a normal fee. The said provision enables inactive companies to remain on the register of the companies with minimal compliance requirements.

It may kindly be noted that the immunity is only against delayed filings in MCA 21 and not against any substantive violation of law.

In this regard, the Ministry of Corporate Affairs, Government of India, has issued the Circular on their website and the link for the same is as below:

For Companies Fresh Start Scheme, 2020 http://www.mca.gov.in/Ministry/pdf/Circular12_30032020.pdf

ICAI has also prepared and issued FAQs on the Companies Fresh Start Scheme and LLP Settlement Scheme, 2020 (Original and Modified) for the benefit of its members and other stakeholder that are uploaded on ICAI website.

FAQs on the Companies Fresh Start Scheme are available at the link https://resource.cdn.icai.org/58908clcgc48020.pdf

Also Refer ICAI FAQs on LLP Settlement Scheme 2020