Company Law Settlement Scheme, 2014 (CLSS-2014)

Company Law Settlement Scheme, 2014 (CLSS-2014)
The Ministry of Corporate Affairs, in order to give an opportunity to companies who have failed to file annual statutory documents (Annual Return and Financial Statements), has launched  Company Law Settlement Scheme, 2014 (CLSS-2014), vide General Circular no. 34/2014 dated 12.08.2014.
The Company Law Settlement Scheme, 2014 (CLSS-2014) gives an opportunity to the defaulting companies to enable them to make their default good by filing belated documents.
Corporates can avail the following benefits:
  1. Immunity from prosecution for delayed filing
  2. A reduced additional fee of 25% of the actual additional fees payable
  3. Escape for directors disqualified under section 164(2) of Companies Act, 2013
Company Law Settlement Scheme, 2014 (CLSS-2014) shall not apply to the filing of belated documents other than the following:
  1. Form 20B- Form for filing annual return by a company having share capital.
  2. Form 21A-Particulars of Annual Return for the company not having share capital.
  3. Form 23AC, 23ACA, 23AC-XBRL and 23ACA-XBRL- Forms for filing Balance Sheet and Profit & Loss account.
  4. Form 66- Form for submission of Compliance Certificate with the Registrar.
  5. Form 23B- Form for intimation for Appointment of Auditors.
                                                            
Further, Company Law Settlement Scheme, 2014 (CLSS-2014) shall not apply in the following cases:
  1. 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
  2. Where any application has already been filed by the companies for action of striking off name from the Register of Companies or
  3. Where applications have been filed for obtaining Dormant status under section 455 of the Companies Act, 2013
  4. Vanishing companies
The Company Law Settlement Scheme, 2014 (CLSS-2014) shall remain in force for a period of two month, i.e., from 15th August, 2014 to 15th October, 2014.
Corporates, who have failed to file annual statutory documents, are advised to utilize the benefits of the Company Law Settlement Scheme, 2014 (CLSS-2014), issued by the Ministry.
Click here to read the text of the Company Law Settlement Scheme, 2014 (CLSS-2014).
Contributed by;
bindi_vaishnav
CS Bindi Vaishnav
Practicing Company Secretary
You may reach her on bindi.vaishnav@kcjm.in

Ready to pay penalty if not mentioning Company Identification Number (CIN)

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For every Private and Public Limited company established in India, has to quote its Company Identification Number of various documents including Invoices and Letter head from April 1 2014 (Section 12(3)(c) of New Companies Act, 2013)

Applicable to whom?

Every Private and Public Limited Company registered in India

How to find Company Identification Number (CIN)?

Company Identification Number is mentioned in the Certificate of Incorporation in Memorandum of Association. You can search Ministry of Company Affairs website. You can search CIN by entering your company name in this link.

Where CIN has to be mentioned?

It is compulsory to mentioned Company Identification Number on the following documents:

  • On Invoices and Receipts
  • On Letterheads
  • On Notice
  • Any other publications

 

Penalty for violating this rule

In case of any non compliance of the said section, the company and the officers which are in default shall be liable to a penalty of Rs. 1000 for every day during which the default continues but not exceeding Rs. 1,00,000/-.