The Ministry of Corporate Affairs (MCA), has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) to provide a one-time opportunity for companies to regularise long-pending statutory filings at a substantially reduced cost. The scheme aims to strengthen corporate compliance, clean up the MCA registry, and offer practical exit or dormancy options for inactive entities.
Background and Need for the Scheme
Under the Companies Act, 2013, every company must file:
- Annual Financial Statements (Sec. 137)
- Annual Return (Sec. 92)
Since July 2018, delayed filing attracts Rs 100 per day additional fee without any cap, resulting in huge financial burdens on defaulting companies, especially MSMEs and private companies. Over time, many companies accumulated heavy filing backlogs due to operational challenges, lack of awareness, or inactive business operations.
Recognising these practical challenges and representations from stakeholders, the Government introduced CCFS-2026 as a compliance reset window.
Duration of the Scheme
The scheme is available for a limited period:
- 15 April 2026 to 15 July 2026
This three-month window is critical for companies to take corrective action before stricter enforcement begins.
Core Objectives of CCFS-2026
The scheme is designed to:
- Improve corporate compliance levels
- Update and clean the MCA database
- Provide relief from excessive additional fees
- Offer low-cost dormancy and strike-off options
- Encourage voluntary compliance before enforcement action
Key Reliefs and Options Available
1. Huge Waiver of Additional Filing Fees
Companies can file pending annual returns and financial statements by paying:
Normal filing fee + only 10% of additional fees
This is the most significant financial relief under the scheme, as additional fees typically run into lakhs for long-pending filings.
2. Opportunity to Become a Dormant Company
Inactive companies can opt for Dormant Status (Sec. 455) by filing Form MSC-1 with:
Only 50% of normal filing fees
Dormant status allows companies to:
- Remain legally registered
- Reduce compliance burden
- Avoid unnecessary costs while inactive
3. Low-Cost Exit via Strike-Off
Defunct companies can apply for removal of name using Form STK-2 by paying:
Only 25% of the normal filing fee
This provides an affordable exit route for companies that no longer wish to continue operations.
Forms Covered Under the Scheme
The scheme covers major annual compliance forms such as:
Companies Act, 2013
- MGT-7 / MGT-7A (Annual Return)
- AOC-4 and variants (Financial Statements)
- ADT-1 (Auditor Appointment)
- FC-3 / FC-4 (Foreign Companies)
Companies Act, 1956 legacy forms
- 20B, 21A
- 23AC / 23ACA (Financials)
- 23B, Form 66
Immunity from Penalty and Prosecution
One of the most attractive features of the scheme is immunity from penalties.
No penalty if filings are made:
- Before notice by adjudicating officer, OR
- Within 30 days of issuance of notice.
For certain forms, immunity from prosecution is also available if:
- No prosecution or show-cause notice has been issued before filing.
However, if a penalty order has already been passed, the penalty remains payable.
Companies Not Eligible
The scheme does not apply to:
- Companies already under final strike-off notice
- Companies that already applied for strike-off
- Companies that already applied for dormant status before the scheme
- Amalgamated or dissolved companies
- Vanishing companies
Post-Scheme Consequences
After 15 July 2026:
- ROC will initiate strict action against defaulting companies.
- This may include penalties, adjudication, and possible strike-off.
Hence, the scheme should be treated as a last opportunity to regularise compliance.
Practical Impact of the Scheme
CCFS-2026 offers a triple advantage:
|
Area |
Impact |
|
Financial Relief |
Massive reduction in late filing fees |
|
Compliance Regularisation |
Opportunity to clean backlog |
|
Business Decision Flexibility |
Continue, Dormant, or Exit |
Conclusion
The Companies Compliance Facilitation Scheme, 2026 is a significant compliance reform that provides a rare opportunity for defaulting companies to start afresh. Whether a company intends to continue operations, remain dormant, or close down, the scheme offers a cost-effective and legally safe pathway.
Companies should evaluate their compliance status urgently and take timely action within the scheme window to avoid future enforcement risks.
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