CFSS 2020

Companies Fresh Start Scheme 2020

Companies Fresh Start Scheme or CFSS 2020 is a one in a lifetime opportunity for all those companies which have previous filing defaults. In India; every registered company has to follow some norms which are directed by the Goverenment of the country. Some of these norms are: 

Filing of financial statements, filing of annual return, books of accounts filing, and other business-related documents which government ask from them.

Now due to any reasons if you miss abiding these norms you get a penalty or interest by the Goverenment. Hence; your company will get into the category of “Defaulting Companies”. 

Now the Government is giving a chance to all the defaulting companies. Regardless of the default duration, the company will not get any additional charges or penalties. Also, it can be counted as a single time waiver of penalty for delayed filing. 

Why This Blog For CFSS 2020?

This blog is written with an objective to help you utilize the advantages of CFSS. We have created this blog to answer some of the popular queries related to CFSS 2020. Keep reading till the end to know everything about CFSS.

If you are someone who doesn’t like reading long blogs but wants to know everything about CFSS, then we have a video for you:

What is the validity of CFSS 2020:

The government has provided a fixed period to apply for CFSS 2020; from 1st April 2020 to 31st December 2020. The companies are required to complete the process in this time period only.

Which forms are required to be filed to get the benefits of this scheme?

Following are the important forms that are required to be filed:

DIR-3 KYC/Webform Application for KYC of Directors

AOC-4 Form to file financial statement along with other documents with the Registrar

MGT-7 To file Annual Return

ADT-1 Information to the Registrar by the company for appointment of an auditor

ADT-3 Notice of Resignation by the Auditor

INC-4 Announcement for Change in Member/Nominee

These were some of the basic forms which are required. If you want to check the complete list of the forms check out this link.

What are the benefits of the CFSS 2020 Scheme?

  • Zero additional fees for delayed filings of any of the forms required by the MCA
  • No imposing of penalty for filing the belated documents
  • Safety from getting prosecuted

When is the Non Applicability of the CFSS 2020 Scheme?

  • Documents related to Charge (CHG-1, CHG-4, CHG-8, and CHG-9)
  • Case of Increased Authorised Capital (Form SH-7)
  • If the final notice for Striking off the name of the company is initiated
  • If a company has voluntarily filed an application to strike off the name
  • Companies which have applied for Dormant Status
  • Amalgamated Companies
  • Vanished Companies

What is the scheme for Inactive Companies? 

The defaulting companies, along with filing due documents can:

  1. Apply for Strike Off by filing E-Form STK-2
  2. Apply for the status of the Dormant Company by filing E-Form MSC-1

How to apply for Seeking Immunity under CFSS 2020?

The application for seeking immunity can be done by electronically filing form CFSS-2020 and the same has to be annexed with Scheme. After filing Form- CFSS 2020, The company will get the immunity certificate.

What is the due date for electronically filing Form CFSS-2020

Form – CFSS-2020 shall be filed within six months of the expiry of the Scheme. The Scheme expires on 30th December 2020. Thus the Form can be filed within six months from 30th December 2020.

What is the fees for electronically filing Form CFSS-2020

No fee is payable on the Form- CFSS-2020.

What actions can be taken on the defaulting companies at the conclusion of the Scheme

After completing the process of the Scheme, the Designated Authority will take the actions required under the Act. It will be against the companies who still have not registered under the CFSS Scheme and still are in default of filing documents in a timely manner.

Where Immunity of this scheme is inapplicable?

Any appeal pending in the court of law

In case of management disputes of company pending before any court of law or tribunal

If there is any order imposing a penalty that has no appeal preferred before this scheme.

What is the effect of Immunity? 

Designated Authority will withdraw the prosecution which was pending and the adjudication of all the penalties under Section 454 of the Companies Act, 2013 will take place, in respect of defaults against which immunity has been granted will get the status of completed without any further action from the Designated Authority.

When the Immunity of this scheme will not be applicable?

For the following cases the immunity will get rejected:

Any pending appeal in the court of law

In case of management disputes of company pending before any court of law or tribunal

If a conviction for the court has been ordered in any matters and no appeal preferred before this scheme

Any order imposing penalty has been imposed and no appeal preferred before this scheme.


What is the procedure to apply for CFSS 2020?

  1. Defaulting Company: Pending Forms/Documents to be filed by paying  

normal statutory fees.

  1. Making all default good: File the Form CFSS-2020 within 6 months of 

closure of Scheme

  1. Immunity Certificate: On the basis of declaration made in Form CFSS-

2020 the designated authority will issue an Immunity Certificate.


Now it’s your turn. If you still haven’t utilized the benefits of CFSS 2020 then this is the high time. This is a one time opportunity for business under the “defaulting company” category. If you need any professional help or advice we are here for you. Get in touch with us today.