Company Law Settlement Scheme 2014


Sub: Company Law Settlement Scheme, 2014 –Backlog of Filing of Annual financial Statements & Annual Returns As per Companies Act, 1956 Companies were required to e-File their Annual Financial Statements and Annual Return before specified deadlines. The Companies Act, 2013, has laid down stricter regime of compliance. Defaults involve higher additional fees, prosecution, ultimately disqualification of the Directors in case a Company has defaulted in filing Financial Statements or Annual Returns for three continuous financial years extending to all Companies.Government of India, Ministry of Corporate Affairs, vide its circular No.34 dated 12-08-2014 is offering a one time opportunity for defaulting Companies and Directors who have not filed their Annual Returns, Financial Statements and related documents due for filing on or before 30-06-2014, to file these documents commencing from 15th August, 2014 and ending on 15th October, 2014 and avail of the following:-

  1. Pay Statutory filing fees along with only 25% of actual additional fee payable on the date of filing.
  2. Enjoy immunity from prosecution
  3. Directors will also not be disqualified  

Additionally, defaulting Companies which are inactive may avail the opportunity of designating themselves as ‘Dormant Company’ under Section 455 of the Companies Act, 2013 which enables them to pay reduced fees and minimal compliance.

For details please refer the Circular.

Defaulting Companies are therefore advised to grab this opportunity and take immediate steps to file the pending annual filing documents with the Registrar of Companies before 15th October, 2014.