MCA vide Circular No. 34/2014 dated 12th August 2014, by exercising its power under section 403 and 460 of Companies Act, 2013 has introduced a Scheme called “Company Law Settlement Scheme (CLSS) 2014”, through which one time opportunity has been given to the defaulting companies and its Directors to file their important documents viz. Annual Reports, Financial Statements and related Documents which are due for filing on before 30/06/2014 by 15/10/2014 with some key benefits. The key element of the Scheme are numerated as below:-

1. The Scheme shall come into force on August 15, 2014 and remain in force till October 15, 2014.
2. Defaulting Companies means companies defined under Companies Act and which has made any default in filing of annual statutory documents.
3. If defaulting Companies and its Directors files belated documents before 15/10/2014 , they can avail :-
   • Payment of only 25% of payable additional fee;
   • Enjoy Immunity from prosecution and
   • Directors will also not be disqualified under section 164(2) of the Companies Act, 2013.
4. Scheme gives an opportunity to inactive Companies to get their company declared as Dormant under Companies Act, 2013 by filing a simple application at reduced fees.
5. In case if defaulting Company has filed any appeal against any notice issued or compliant filed before any competent court for any violation under Companies Act 1956/2013 in respect of which an application is filed under this scheme ,then it shall first withdraw such appeal and furnish proof of withdrawal for the filing the application under the scheme.
6. The application for seeking immunity certificate can be obtained by filing E -form CLSS-2014 and the same will be available on MCA website with effect from September 1, 2014 and may be filed thereafter but not later than 3 months from the closure of such scheme without any fee.
7. This scheme applies only in the case of filling following belated documents :-
   • Form 20B (Annual Return by Company having Share Capital)
   • Form 2A (Particulars of Annual Return by Company not having Share Capital)
   • Form 23AC, 23ACA, 23AC- XBRL, 23ACA- XBRL (Balance Sheet and Profit & loss Accounts)
   • Form 66 (Compliance Certificate)
   • Form 23B (Intimation for appointment of Auditor)
8. In case of defaulting company which avail this scheme, the provisions in which Company has not filed financial statements or annual returns for continuous period of 3 F.Y. shall apply only for prospective defaults.
9. Scheme doesn’t applies to:
   • Companies against which action of striking off already being initiated by the Registrar (under Companies Act, 2013)
     Companies which has already filed application for striking off.
   • Companies which has filed application for obtaining dormant status (under Companies Act, 2013)
   • Vanishing Companies
10. Scheme for inactive company

    Defaulting inactive company while filing belated documents under CLSS-2014 (Scheme) can simultaneously:-

    • Apply to get them declared as dormant Company by filing e-form MSC-1 at 25% of the fee for it.
    • Apply for striking off the name by filing FTE at 25 % of the fee for it.
11. The Registrar after granting the immunity certificate under this scheme , will withdraw the prosecutions (if any) pending before the court
12. Defaulting companies which availed the scheme and has filed all pending the documents, the default relating to annual filings under section 164(2) shall apply for prospective years only.