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FAQs on Company Law Settlement Scheme, 2010


FAQs on Easy Exit Scheme, 2010





What is Company Law settlement Scheme, 2010 (CLSS), 2010?

"Company Law Settlement Scheme, 2010" is a scheme to give opportunity to the defaulting Companies to enable them to make their default good by filing belated documents and to become a regular compliant in future. Refer General Circular No 1/2010 available on MCA portal under News & Events and under heading Act, Bills and Rules.
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What is the time period of the Scheme?

The Scheme shall come into force on the 30th May, 2010 and shall remain effective up to 31st August, 2010.
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What are the benefits available under CLSS, 2010?

Under the scheme, for the belated documents, the Company shall pay statutory filing fees as prescribed under the Companies Act and rules made there under along with an additional fee of 25 percent of the actual additional fee i.e. there shall be a waiver of 75% of the actual additional fee.

Further, after closure of Scheme, the company may file application for seeking immunity in respect of belated documents filed under the Scheme and the Registrar, upon being satisfied shall grant the immunity from prosecution in respect of documents filed in the Scheme.

After granting the immunity, the Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s).

Application for issue of immunity certificate under CLSS, 2010 shall be available on the portal after the closure of the scheme.
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What are the documents on which CLSS, 2010 is not applicable?


CLSS, 2010 shall not be applicable for the following:

  • Filing of documents for incorporation; or
  • Filing of documents for establishment of place of business in India; or
  • Filing of documents where specific order for condonation of delay or prior approval under the provisions of the Companies Act, 1956 is to be obtained from the Company Law Board or the Central Government or Court or any other Competent Authority is required.
  • Companies against which action under sub-section (5) of section 560 of the Act has been initiated by the Registrar of Companies;
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A company is not having paid up capital up to the threshold limit provided in sub-section (3) and sub-section (4) of Section 3 of the Companies Act, 1956. Whether such company shall be allowed to file its belated documents and avail the benefits of the scheme?

Yes , the company can avail the benefits of the scheme. However, such company shall first file its documents to increase the paid up capital up to the threshold limit under the scheme and thereafter would be allowed to file other belated documents.
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Is there any time period for filing application for grant of immunity under CLSS, 2010?

Yes, the application can be filed after closure of Scheme and after the belated document(s) filed during CLSS, 2010are taken on file, or on record or approved by the Registrar of Companies as the case may be, but not after the expiry of six months from the date of closure of the Scheme.
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Is there any fee for filing application for grant of immunity under CLSS, 2010?

No, there is no fee for filing the application.
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What is Easy Exit Scheme (EES), 2010?

“Easy Exit Scheme, 2010” is a scheme to give opportunity to the defunct companies to get their names struck off from the register under Section 560 of the Companies Act, 1956.
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What is the time period of the Scheme?

The Scheme shall come into force on the 30th May, 2010 and shall remain effective up to 31st August, 2010.
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Which are the companies to whom EES, 2010 is not applicable?

The Scheme does not inter-alia cover the listed companies, section 25 companies, vanishing companies, companies under inspection/investigation, companies against which prosecution for a non-compoundable offence is pending in court, companies having outstanding public deposits or secured loan or dues towards banks and financial institutions or any other Government Departments etc. or having management dispute or company in respect of which filing of documents have been stayed by court or CLB or Central Government or any other competent authority.

Refer general circular number 2/2010 available on MCA portal under News & Events and under heading Act, Bills and Rules for details.
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What is the procedure for making application for striking off the name under ESS, 2010?


The Company desirous to get its name struck off from the Register shall file an application with the Registrar in the prescribed Form EES, 2010.

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Is there any fee for filing Form EES, 2010?

No, there is no fee for filing the Form EES, 2010.
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Who can sign Form EES, 2010? Whether digital signature of authorised signatory of the company is a mandatory requirement for filing the Form ESS, 2010?

In case there are active signatories of the company existing in the MCA21 system, then the Form shall have to be mandatorily digitally signed by the authorised signatory of the company.
In case no such signatories are existing in the MCA 21 system, then a physical copy of the Form duly filled in, shall have to be signed manually by a director authorised by the Board of Directors of the company and shall be attached with the Form.
In all cases, certification by a practicing professional (i.e. CA/ CS/ CWA) is mandatory.
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In case any stakeholder has any objections to the Striking off the name of any company from the Register, what shall be done in such case?

List of applications filed under EES, 2010 will be available on the portal. In case any stakeholder has any objections to the Striking off the name of any company, he/she may raise such objection with the concerned RoC Office within 30 days from the date of filing Form EES, 2010 by the company.
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