On 24 February 2026, the Ministry of Corporate Affairs (MCA) introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) to help companies regularize their pending filings at significantly reduced costs.

This scheme provides a one-time opportunity for companies that have defaulted in filing annual returns and financial statements to bring their compliance up to date while paying only a fraction of the usual additional fees.

For many companies—especially MSMEs and private companies—this scheme could result in substantial financial savings and regulatory relief.

Why the Scheme Was Introduced

Under the Companies Act, 2013, companies must file:

  • Annual Return under Section 92
  • Financial Statements under Section 137

Since 1 July 2018, delay in filing these documents attracts additional fees of ₹100 per day without any upper limit.

Over time, the MCA received several representations from stakeholders highlighting that the accumulated additional fees had become a major financial burden, especially for:

  • MSMEs
  • Private limited companies
  • Startups
  • Producer companies
  • One Person Companies (OPCs)

To improve compliance and update the corporate registry, the government has now introduced CCFS-2026 as a compliance reset opportunity.

Key Benefits of the Scheme

The scheme provides three important options for companies depending on their situation.

1. File Pending Annual Returns and Financial Statements at Reduced Cost

Companies with overdue filings can complete their compliance by paying:

  • Normal filing fees, plus
  • Only 10% of the additional fees otherwise payable

This means companies can clear several years of backlog while paying just 10% of the late fee liability.

2. Convert an Inactive Company into a Dormant Company

Inactive companies that wish to remain registered but avoid regular compliance can apply for Dormant Company status under Section 455.

Under the scheme:

  • Form MSC-1 can be filed
  • Only 50% of the normal filing fee is payable.

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

3. Strike Off the Company at a Reduced Fee

If promoters no longer wish to continue the company, they can apply for strike-off under Section 248 by filing Form STK-2.

Under CCFS-2026:

  • Only 25% of the normal filing fees is payable for strike-off.

This provides a cost-effective exit route for defunct entities.

Scheme Period

The scheme will be operational for three months only:

  • Start Date: 15 April 2026
  • End Date: 15 July 2026
    Companies should therefore prepare their filings early to avoid last-minute issues

Forms Covered Under the Scheme

The scheme applies to several key MCA filings including:

Annual Compliance Forms

  • MGT-7 / MGT-7A – Annual Return
  • AOC-4 / AOC-4 XBRL / AOC-4 CFS – Financial Statements
  • AOC-4 NBFC forms

Other Forms

  • ADT-1 – Appointment of Auditor
  • FC-3 / FC-4 – Foreign Company filings

Legacy Forms under the Companies Act, 1956

  • Form 20B
  • Form 21A
  • Form 23AC / 23ACA
  • Form 66
  • Form 23B

Companies Not Eligible for the Scheme

The following entities cannot avail the scheme:

  • Companies against which final strike-off notice under Section 248 has already been issued
  • Companies that have already applied for strike-off
  • Companies that have already applied for dormant status before the scheme
  • Companies dissolved through amalgamation
  • Vanishing companies

Immunity from Penalty Proceedings

An important advantage of the scheme is immunity from penalty proceedings in certain cases.

If filings are made:

  • Before the adjudication notice is issued, or
  • Within 30 days of receiving the adjudication notice

then no penalty under Sections 92 or 137 will be levied for those defaults.

However, if an adjudication order has already been passed, the penalties imposed will still be payable.

What Happens After the Scheme Ends?

The MCA has clearly stated that after 15 July 2026, Registrars of Companies will take strict action against companies that continue to remain non-compliant.

This could include:

  • Adjudication proceedings
  • Penalties on companies and directors
  • Strike-off actions

Practical Advice for Companies

Companies should use this opportunity strategically:

Step 1: Identify all pending MCA filings
Step 2: Compute additional fees saved under the scheme
Step 3: Decide whether to

  • continue the company
  • convert to dormant status
  • strike off the company

For many companies with multiple years of non-compliance, the savings under CCFS-2026 could run into several lakhs of rupees.

Final Thoughts

The Companies Compliance Facilitation Scheme, 2026 is a well-timed initiative aimed at improving corporate compliance while giving companies a financially viable path to regularization or closure.

Businesses should take proactive steps to utilize this limited-period relief before the deadline expires.

CCFS-26-ESIGNED-20260224Download