Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): A One-Time Opportunity for Defaulting Companies

The Ministry of Corporate Affairs (MCA) has introduced a significant relief measure through General Circular No. 01/2026 dated 24 February 2026, announcing the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). This scheme offers a one-time opportunity for companies that have defaulted in filing statutory documents such as annual returns and financial statements.

Background of the Scheme :

Under Section 92 and Section 137 of the Companies Act, 2013, every company must file:

• Annual Return

• Financial Statements

  
  

As per Section 403, delay in filing these documents attracts an additional fee of ₹100 per day with no upper limit. Over time, this can result in a substantial financial burden, especially for MSMEs, startups, producer companies, and One Person Companies (OPCs).

Recognizing these challenges, the MCA has introduced Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) to encourage companies to update their compliance records, this scheme provides substantial relief by allowing companies to regularize their filings at significantly reduced additional fees.

Duration of the Scheme :

Companies can avail the benefits of the scheme between 15 April 2026 and 15 July 2026, during which they may regularize overdue filings with the Registrar of Companies.

Key Benefits of CCFS-2026 :

The scheme provides an opportunity to regularize pending filings, reduce additional fees, and enable inactive companies to opt for dormancy or strike-off at concessional costs. Details are as below-

1. Filing Pending Annual Returns and Financial Statements-

Companies can file overdue statutory forms by paying:

• Normal filing fee, and

• Only 10% of the additional fee otherwise payable for delayed filing.

This significantly reduces the financial burden on defaulting companies under the Companies Act, 2013 and the Rule thereunder. Relevant forms include:

• MGT-7 / MGT-7A (Annual Return)

• AOC-4 and its variants (Financial Statements)

• ADT-1 (Auditor Appointment)

• FC-3 and FC-4 (Foreign Company filings)

Forms prescribed, under the Companies Act, 1956 and the Rule thereunder, have also been included to allow complete compliance regularization. Relevant forms include:

• 20B, 21A, 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, 66 and 23B.

2. Option to Apply for Dormant Company Status-

Inactive companies that wish to maintain their corporate status without ongoing operations can apply to become a Dormant Company under Section 455 of the Companies Act, 2013. Under the scheme:

• Application through Form MSC-1

• Only 50% of the normal filing fee is payable.

Dormant status allows companies to remain on the register with minimal compliance obligations.

3. Option to Strike Off the Company-

Companies that have ceased operations and wish to close their entity can apply for removal of name from the register by filing Form STK-2 under CCFS-2026:

• Only 25% of the prescribed filing fee is payable.

This provides a cost-effective exit route for defunct or inactive companies.

4. Immunity from Penalties-

The scheme also provides limited immunity from penalties relating to delayed filings under Sections 92 and 137.

No penalty will be imposed if the company files the relevant documents:

• Before issuance of notice by the adjudicating officer, or

• Within 30 days from the date of such notice.

However, if a penalty order has already been passed, the company must still pay the imposed penalty, though filing under the scheme will still regularize the statutory records.

Companies Not Eligible for the Scheme :

The scheme does not apply to:

• Companies for which final notice of strike-off has already been issued under Section 248 under companies Act, 2013 (Section 560 under companies Act, 1956),

• Companies that have already applied for strike-off,

• Companies that applied for dormant status before the scheme,

• Companies dissolved due to amalgamation,

• Vanishing companies.

This initiative signals a policy evolution—from supporting production to enabling market access and brand creation.

Action After the Scheme Ends :

The Registrar of Companies (ROC) concerned may initiate strict action after 15 July 2026, against companies that continue to remain non-compliant.

Therefore, companies should proactively use this window to update their filings or opt for dormancy or closure where appropriate

Grab this Opportunity :

The Companies Compliance Facilitation Scheme, 2026 is a welcome initiative by the MCA aimed at improving corporate compliance while reducing the financial burden of delayed filings.

Companies with pending statutory filings should take advantage of this time-bound opportunity to regularize their records at minimal cost. At the same time, inactive companies should evaluate whether opting for dormant status or strike-off is a more suitable course of action.

Professional guidance from corporate compliance experts/ CAs/ CSs can help ensure that companies make the most of this scheme before it closes.