Updated as on : 15th November, 2014.
CLSS gets extension for another month (extended till 31’st December , 2014). Refer: General Circular no. 44/2014 dated 14.11.2014
I do get a lot of questions from the business owners who had incorporated their ventures but never filed any Annual returns so far, either due to less / NIL business or were not aware of the Compliance procedures, asking how to close down the business or negotiate for lesser fees with the Registrar which is not possible.
So below is the very good opportunity for those who have failed to file annual statutory documents i.e. Balance Sheet & Profile/Loss Account, Annual Returns with the Registrar.
Why is this a good opportunity?
In the present scenario if the company which has already failed to file annual forms and now wants to file Balance sheet, Profit and loss account, Annual Return they have to pay normal as well as additional fees (penalty) which may be beyond expectations and they shall be liable for prosecution.
e.g. Someone has incorporated a Private Limited Company in June, 2008 with Authorised Capital Rs. 1 Lakh & failed to file the annual statutory documents then in the normal circumstances the filing fees for e-form 23AC/ 23ACA and e-form 20B would be around Rs. 25000/- approximately till date.
But after introduction of “Company Law Settlement Scheme,2014” (CLSS), by the Central Government, it would be a good opportunity to the defaulting companies to file belated documents with reduced additional fees of 25% of actual additional fees payable as per Section 403 of Companies Act 2013.
Please refer General Circular no. 34/2014 dated 12.08.2014.
What are the benefits of CLSS?
Businesses can avail the following benefits:
- Immunity from prosecution for delayed filing
- A reduced additional fee of 25% of the actual additional fees payable as per Section 403 of Companies Act 2013
- Escape for directors disqualified under section 164(2) of Companies Act, 2013
- Scheme for defaulting inactive companies: –
- To get their companies declared as ‘dormant company’ under Section 455 of the Act (Chapter XXIX) by filing e-form MSC-1 at 25% of the fees for the said form.
- To apply for striking off name of the company by filing e-form FTE at 25% of the fee payable on form FTE.
Defaulting company is permitted to file belated documents which were due for filing till 30th June 2014.
To which e-forms CLSS shall be applicable?
CLSS shall be applicable to following e-forms only:-
- Form 20B- Form for filing annual return by a company having share capital.
- Form 21A-Particulars of Annual Return for the company not having share capital.
- Form 23AC, 23ACA, 23AC-XBRL and 23ACA-XBRL- Forms for filing Balance Sheet and Profit & Loss account.
- Form 66- Form for submission of Compliance Certificate with the Registrar.
- Form 23B- Form for intimation for Appointment of Auditors.
To which cases CLSS is not applicable?
CLSS shall not apply in the following cases:
- Companies against which action for striking off the name under sub-section(5) of section 560 of Companies Act, 1956 has already been initiated by the Registrar of Companies or
- Where any application has already been filed by the companies for action of striking off name from the Register of Companies or
- Where applications have been filed for obtaining Dormant status under section 455 of the Companies Act, 2013
- Vanishing companies
Procedure of filing CLSS
- Application for seeking immunity in respect of belated documents shall be filed in the e-form CLSS 2014.
- The designated authority i.e. the Registrar shall consider the application and upon being satisfied grant the immunity certificate
Validity of Scheme
The scheme shall remain in force till 31’st December, 2014. Refer Extension vide General Circular no. 44/2014 dated 14.11.2014
So, opt this opportunity to avail the benefit of reduced additional fee & remain compliant.
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