INTRODUCTION
In view of the Covid-19 pandemic and in order to provide corporates with a one-of-its-kind opportunity, the Indian Ministry of Corporate Affairs (MCA extension) presented on 30 March 2020 a new plan called Companies Fresh Start Scheme 2020 (CFSS-2020) regarding delays in filing corporate forms and to authorize any default in registrations, regardless of duration, thus creating a true “fresh start” as a fully compliant entity.
KEY POINTS OF THE ''FRESH START SCHEME 2020''
The new regulation came into force on April 1st and will remain in force until September 30th 2020.
The Fresh Start Scheme guarantees the immunity to companies with respect to the filing of additional taxes and from criminal prosecution or proceedings for any delays associated with late filing of documents. It also ensures the reduction of compliance during this unprecedented time caused by COVID-19.
Companies can submit all pending payments, declarations or documents to the Companies Registry (RoC) without additional costs, regardless of the due date. That is, each defaulting company must pay the normal prescribed fees for each late submitted form but no additional fees will be due.
This immunity will not be granted for subsequent breaches of the Act. This means that the benefit under this regime can be used for breaches by Companies pre-existing as of 31 March 2020 but does not provide immunity for breaches that arise subsequently, i.e. from 1 April 2020 onwards.
HOW TO BENEFIT FROM THIS SCHEME:
The application for immunity under the CFSS-2020 scheme can be submitted electronically by filling the appropriate form (e-Form CFSS-2020). Accordingly, the scheme requires companies by default to clear all pending documents till 30th September 2020.
Subsequently, companies will have to submit the electronic form CFSS-2020 within 6 months of the end of the Plan CFSS-2020, therefore by March 31, 2021. The competent body, upon filing, will issue a ''Certificate of Immunity'' for the filed documents. However, immunity under the CFSS-2020 regime is not applicable to some specific cases.
NON-APPLICABILITY OF THE REGIME
The CFSS-2020 scheme It is not applicable in the following cases:
To increase the authorized share capital and all forms of related expenses.
For companies that have submitted an application for cancellation from the company register.
For companies that have applied for the status of “dormant company”. Any dormant company will be allowed to continue to remain on the Ministry of Internal Revenue (MCA) register if the minimum compliance requirements are maintained.
For companies against which a dissolution action has been initiated.
For companies that have merged under a scheme of agreement or compromise pursuant to the law.
For “ghost” companies.
IMPORTANT NOTE:
Upon completion of the CFSS-2020 plan, the competent authorities will take the necessary actions in accordance with the respective legal provisions against all those companies that will continue to be in default with respect to the submission of documents, and will not have availed themselves of the extraordinary regime of the CFSS-2020 plan.
We remind you that the Octagona Task Force as Knowledge Partner of the Indian Embassy is available to provide free support, detailed information and consultancy to all Italian companies that may need it.
In this regard, you can contact:
Alessandro Fichera | [email protected] | +39.328.2123458
Monica Sessi | [email protected] | +39.340.3422473
Brando Bruschi | [email protected] | +39.348.9653664
Are you interested in our service?
Fill out the form or contact us at the number
+39 059 9770184