Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): A One-Time Relief for Defaulting Companies
The Ministry of Corporate Affairs (MCA), under the provisions of the Companies Act, 2013, has introduced a significant compliance relief initiative titled “Companies Compliance Facilitation Scheme, 2026 (CCFS-2026)”. This scheme provides a one-time opportunity for companies to regularize pending filings, reduce financial burden, and update their compliance status.
Background and Need for the Scheme
As per Section 92 and Section 137 of the Companies Act, 2013, every company is required to file:
- Annual Return (MGT-7 / MGT-7A)
- Financial Statements (AOC-4 and its variants)
Delay in filing these forms attracts additional fees under Section 403, which currently stands at ₹100 per day without any upper cap. Over time, this has resulted in substantial financial burdens, especially for:
- MSMEs
- Startups
- OPCs
- Small private companies
Considering the growing number of companies (crossing 20 lakh) and increasing compliance challenges, MCA has introduced this scheme to promote ease of doing business and improve overall compliance levels.
Objective of CCFS-2026
The Scheme aims to:
- Provide a one-time relaxation in additional fees
- Encourage companies to complete pending annual filings
- Facilitate closure or dormancy of inactive companies
- Ensure accurate and updated MCA registry records
Key Benefits under the Scheme
Companies can choose any of the following options:
1. Filing of Pending Documents at Reduced Cost
- Companies can file overdue forms by paying only 10% of the total additional fees.
2. Option to Become Dormant Company
- File MSC-1 under Section 455
- Pay only 50% of normal filing fees
- Ideal for inactive companies wishing to retain legal status with minimal compliance
3. Strike-Off Option
- File STK-2 for removal of name
- Pay only 25% of the prescribed filing fees
- Suitable for companies intending to exit
Scheme Duration
- Start Date: 15 April 2026
- End Date: 15 July 2026
This is a limited window, and companies must act within this period.
Forms Covered under the Scheme
The Scheme covers various pending filings, including:
Under Companies Act, 2013
- MGT-7 / MGT-7A (Annual Return)
- AOC-4 and its variants (Financial Statements)
- ADT-1 (Auditor Appointment)
- FC-3, FC-4 (Foreign Companies)
Under Companies Act, 1956
- Form 20B, 21A
- Form 23AC, 23ACA
- Form 66, 23B, etc.
Applicability
The Scheme is applicable to all companies, except:
- Companies under final strike-off notice (Section 248)
- Companies that have already applied for strike-off
- Companies already applied for dormant status
- Companies dissolved under amalgamation
- Vanishing companies
Immunity from Penalty
The Scheme also provides conditional immunity:
For Annual Filings (Sections 92 & 137):
- No penalty if filings are made:
- Before notice by adjudicating officer; or
- Within 30 days of notice
- If adjudication is already completed, penalty remains payable, but fee relief still applies.
For Other Forms:
Immunity from future penal action is available if:
- Forms are filed under the scheme
- No prior notice or prosecution has been initiated
Post-Scheme Consequences
After the closure of the scheme:
- Strict action will be taken by ROC
- Non-compliant companies may face:
- Penalties
- Prosecution
- Strike-off action
Conclusion
The Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) provides a valuable one-time opportunity for companies to regularize pending compliances at reduced cost and avoid future penalties.
𝐌𝐂𝐀 𝐡𝐚𝐬 𝐢𝐧𝐭𝐫𝐨𝐝𝐮𝐜𝐞𝐝 𝐂𝐂𝐅𝐒-𝟐𝟎𝟐𝟔 𝐰𝐡𝐞𝐫𝐞:
- 𝐎𝐧𝐥𝐲 𝟏𝟎% 𝐚𝐝𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐟𝐞𝐞𝐬 𝐚𝐫𝐞 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 𝐨𝐧 𝐚𝐧𝐧𝐮𝐚𝐥 𝐟𝐢𝐥𝐢𝐧𝐠 (𝐌𝐆𝐓-𝟕 / 𝐌𝐆𝐓-𝟕𝐀, 𝐀𝐎𝐂-𝟒)
- 𝐒𝐓𝐊-𝟐 𝐜𝐚𝐧 𝐛𝐞 𝐟𝐢𝐥𝐞𝐝 𝐚𝐭 𝟐𝟓% 𝐨𝐟 𝐟𝐞𝐞
Companies should utilize this limited window to update their compliance status and avoid stricter regulatory action.
******
The author, Ms. Chinki Singhal, is a Company Secretary in Practice at M/s Chinki Singhal and Associates and can be reached at: Mobile: +91-9050320565 | • Email: chinki.singhal@csassociate.com | Alternate Email: pcschinki@gmail.com
Author Bio
