Startups get another chance to stay in compliance as MCA extends due date for availing the benefits of waiver of additional fee

 

Startups get another chance to stay in compliance as MCA extends due date for availing the benefits of waiver of additional fee. The due date for the ongoing Company Law Settlement Scheme (CLSS) has been extended to 15th November, 2014. Read on to know more about CLSS:

What sounds sweeter than a huge cut in the penalty?? Nothing?? Wait…how about immunity from disqualification?? How about both at the same time?? When both these things knock your doorsteps at the same time, then it is called the CLSS!!!

CLSS stands for Company Law Settlement Scheme, wherein the MCA is giving chance to all stakeholders to file the Annual Documents with only 25% of Actual Additional Fees and NO PENALTY.  

No penalty for the Defaulting Companies, says CLSS,2014. Sounds interesting??? Read on to know more.  no-penalties

What is CLSS?

Just when Taxmantra.com introduced the special start-up solution package, MCA seems to read minds!!

CLSS or the Company Law Settlement Scheme has been brought about by the Ministry of Corporate Affairs (MCA) by way of Circular No. 34/2014. This scheme has been brought about  to give chance to all stakeholders to file all the annual documents of the company which were pending for filing before 30th June, 2014. These filings are proposed to be with only 25% additional fees and no penalty.This scheme will come into force from 15th August, 2014 and will stay in effect till 15 th October, 2014, now extended to 15th November, 2014.

“Annual Documents” refers to Annual Return, Balance Sheet, Profit &Loss Account and other certificates (if any). The respective companies can file these documents with the Registrar under this scheme by 15th October, 2014.

 

Eligible documents under this scheme:

Only the following documents are allowed to be filed under this scheme:

  • Form 23AC, 23 ACA, 23AC XBRL, 23ACA XBRL– Filing of Balance Sheet & P/L
  • Form 20B– Filing of Annual Returns
  • Form 21A– Filing of Annual return of Companies ( for companies without share capital)
  • Form 23B– Intimation of Appointment of Auditor
  • Form 66– Filing of Compliance Certificates

Advantages of availing this scheme:

  • First and foremost, a flat waiver of 75% of additional fees. We have faced innumerable situations wherein companies have come upto us with pleas of representing them for a waiver of the huge amount of additional Government fees. This move is sure to bring a smile on their faces.
  • Immunity from penalty and prosecution.
  • Inactive company will be able to declare themselves as dormant company at 25% of existing fees payable on Form MSC-1.
  • Directors can also apply for waiver of disqualification charges against them.
  • Defaulting companies can also apply for striking off their name under the FTE (Fast Track Exit) at 25% of the existing fees payable on Form FTE.

Mode of Filing under the Settlement Scheme:

The companies can file Form CLSS-2014 which will be available in the MCA portal from 01st September, 2014.The eform for obtaining the immunity certificate may be filed thereafter but not later than three (3) months form date of closure of this scheme.

EXCEPTIONS TO THIS SCHEME:

  • Company against which strike off action of the name of the company under sub-section (5) of section 560 of Companies Act, 1956 has already been initiated by the Registrar of Companies.
  • Companies who, by themselves had already applied for strike off.
  • Companies who have already filed for Dormant Status.
  • Vanishing Companies.

It is indeed a welcome move for the start-up environment in India. Mostly companies default in filing of these statutory documents due to less knowledge and awareness. In many cases, the consultants who register the companies do not provide the after support services or business maintenance services. The start-ups and SMEs are not very conversant on the existing rules and laws. Even if they do know, it becomes very difficult for them to manage and develop their business as well as comply with the laws.Hence, when the hard blow of the additional penalties meets them on the face; it becomes very difficult for them to survive. Most of the companies shut down and directors are heavily penalized. This move is likely to help the genuine cases which require this timely aid.

And this message goes to the companies– It is once in a lifetime offer. Once your DIN gets disqualified, it is a long term bar in your entrepreneurship career. Avail this scheme and stay in compliance, save yourself from disqualifications and penalties.

Visit our Start-up Offer  page for more details. Startups get another chance to stay in compliance as MCA waives penalty . You can also reach us at +91-9038335433/+91-9230033070 for more assistance.

Download extension circular at : MCA extends due date for CLSS 2014