90% Additional Fee Waiver Under MCA’s 2026 Amnesty Scheme – Complete Analysis of CCFS-2026

Companies Compliance Facilitation Scheme, 2026 – A Timely Window for Course Correction

The Ministry of Corporate Affairs (MCA), vide General Circular No. 01/2026 dated 24th February 2026, has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), granting a one-time opportunity to defaulting companies to regularise long-pending statutory filings at substantially reduced additional fees.

This Scheme is not merely a fee concession measure. It is a structured compliance reset – designed to clean up the MCA-21 registry, reduce litigation exposure, and provide a pragmatic exit or dormancy pathway for inactive entities.

• Legislative Background – Why This Scheme Matters

Under section 403 of the Companies Act, 2013 read with the Companies (Registration Offices and Fees) Rules, 2014, delayed filing of annual returns and financial statements attracts additional fees of ₹100 per day without any upper cap (as noted in the Circular).

Over time, this has resulted in:

• • Exponentially rising additional fee burdens,
  • Financial stress particularly on MSMEs and private companies,
  • Accumulation of inactive and non-compliant companies on MCA records,
  • Increased adjudication and prosecution proceedings under sections 92 and 137.

The MCA has acknowledged representations from stakeholders seeking relief from steep additional fees and has therefore exercised powers under sections 460 and 403 of the Act to introduce CCFS-2026.

• Period of Operation

The Scheme shall be operational:

From 15.04.2026 to 15.07.2026

This is a strictly time-bound window. Post 15th July 2026, normal provisions including penal consequences will apply without concession.

• What Forms Are Covered?

The Scheme applies to “relevant e-forms” relating to:

(A) Companies Act, 2013 Forms:

• • MGT-7 – Annual Return

  • MGT-7A – Annual Return (OPC & Small Company)

  • AOC-4 – Financial Statements

  • AOC-4 CFS – Consolidated Financial Statements

  • AOC-4 NBFC (Ind AS) – Financial Statements (NBFC – Ind AS)

  • AOC-4 CFS NBFC (Ind AS) – CFS (NBFC – Ind AS)

  • AOC-4 (XBRL) – Financial Statements in XBRL

  • ADT-1 – Appointment of Auditor

  • FC-3 – Annual Accounts (Foreign Company)

  • FC-4 – Annual Return (Foreign Company)

(B) Legacy Forms under Companies Act, 1956:

• • Form 20B – Annual Return

  • Form 21A – Annual Return (Small Company)

  • Form 23AC – Balance Sheet

  • Form 23ACA – Profit & Loss Account

  • Form 23AC-XBRL – Balance Sheet (XBRL)

  • Form 23ACA-XBRL – Profit & Loss Account (XBRL)

  • Form 66 – Compliance Certificate

  • Form 23B – Intimation of Appointment of Auditor

Thus, both historical and contemporary non-filings are eligible.

• Core Benefit – Massive Reduction in Additional Fees

The most significant concession under CCFS-2026 is:

Only 10% of the additional fees otherwise payable shall be required to be paid by companies .

Practical Impact

If a company has defaulted for 1,000 days:

• Normal additional fee: ₹100 × 1,000 = ₹1,00,000
• Under CCFS-2026: ₹10,000

This is effectively a 90% waiver of additional fee exposure, subject to payment within the Scheme period. The normal filing fee remains payable.

• Additional Pathways Under the Scheme

The Circular goes beyond late filing relief. It creates structured options for inactive companies and state as under-

“b. get their companies declared as ‘dormant company’ under section 455 of the Act by filing e-form MSC-1 and paying half of the normal fee payable under the rules. The said provision enables inactive companies to remain on the register of the companies with minimal compliance requirements; or

c. get their companies struck off by filing an application in e-form STK-2 during the currency of the scheme, by paying 25% of the filing fees.”

Dormant Status (Section 455)

Companies may apply for dormant status by filing MSC-1 and pay:

Only 50% of the normal filing fees.

This allows inactive companies to remain on the register with minimal compliance burden.

Strike-Off (Form STK-2)

Companies seeking closure may apply for strike-off during the Scheme by paying:

Only 25% of the applicable filing fees.

This is a significant cost rationalisation for promoters seeking orderly exit.

• Immunity from Penalty Proceedings – Critical Protection

One of the most valuable aspects of the Scheme is the conditional immunity framework.

Where No Adjudication Order Is Passed – If filings are made:

• Before issuance of notice by the adjudicating officer; or
• Within 30 days of issuance of such notice,

then proceedings under section 92 or 137 shall be concluded and no penalty shall be levied.

Where Adjudication Order Already Passed – If:

• The 30-day window has expired; or
• Adjudication order imposing penalty has already been passed,

then liability to pay penalties remains unaffected. Thus, timing is critical.

Immunity for Certain Other Forms – For forms such as ADT-1, FC-3, FC-4 and legacy forms, immunity against prospective penal action is available provided no prosecution has been initiated prior to filing under the Scheme .

• Who Cannot Avail the Scheme?

The Scheme excludes:

• Companies against which final notice for strike-off under section 248 (previously section 560 of Companies Act, 1956) has already been initiated.
• Companies that have themselves filed strike-off application.
• Companies that have applied for dormant status prior to the Scheme.
• Companies dissolved pursuant to amalgamation.
• Vanishing companies.

Therefore, a preliminary eligibility review is essential before advising clients.

• Strategic Benefits for Stakeholders

Financial Relief – Substantial reduction in additional fees significantly lowers the cost of compliance regularisation.

Litigation Risk Mitigation – Companies can close adjudication exposure under sections 92 and 137 if acted upon promptly.

Clean Corporate Record – Updated filings improve:

• Creditworthiness,
• Investor confidence,
• Eligibility for bank finance,
• Participation in tenders.

MSME Relief – Small and closely held companies that suffered operational disruptions now have a structured compliance reset.

Registry Clean-Up – The Scheme ensures MCA-21 reflects accurate and updated corporate data improving governance transparency.

• Advisory Perspective – What Professionals Should Do

Chartered Accountants and Company Secretaries should:

• • Conduct a compliance audit for all corporate clients.
  • Quantify additional fee exposure.
  • Identify cases with pending adjudication notices.
  • Evaluate whether dormant or strike-off route is more suitable.
  • Prioritise filings before 15 July 2026.

Delaying decisions may result in:

• • Revival of full additional fees,
  • Prosecution,
  • Disqualification consequences under section 164,
  • Increased adjudication penalties.
• Post-Scheme Consequences

The Circular clearly states that upon conclusion of the Scheme, the Registrar shall initiate necessary action against companies that have not availed the Scheme and remain in default. This indicates a likely enforcement push after 15 July 2026.

Concluding Remarks

The Companies Compliance Facilitation Scheme, 2026 is not a routine relaxation. It is a calibrated compliance amnesty aimed at:

• Revenue rationalisation,
• Governance strengthening,
• Encouraging voluntary compliance,
• Providing an economical exit to defunct entities.

For defaulting companies, this is a rare opportunity to regularise at marginal cost. For professionals, it is a limited window to deliver significant value to clients. Failure to act within the stipulated period may convert today’s manageable exposure into tomorrow’s statutory adversity.

*****

Author’s Note: The views expressed are based on the current MCA disclosures. For any query related to above article, or if you face any issue in Income Tax, GST, SEZ, STPI, MCA compliances etc., especially in cases involving legal proceedings, notices, litigation, or demand matters. Please feel free to contact us at the details mentioned below:

Contact: +91-7842796315; Email: cakrupanand@gmail.com