Companies Compliance Facilitation Scheme, 2026: A Complete Guide

The Ministry of Corporate Affairs pursuant to General Circular No. 01/2026 dated 24th February 2026, has launched a one- time compliance relief initiative, namely the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), to enable companies to regularize pending statutory filings.

1. PURPOSE OF THE SCHEME:

Under the Companies Act, 2013, Companies must file:

• Annual Return (Section 92)
• Financial Statements (Section 137)

As per Section 403, Late filings attract an additional fee of Rs. 100 per day (without any upper limit).

Therefore, the Government introduced a one-time relief scheme called CCFS-2026 to:

• Reduce additional fees
• Encourage defaulting companies to complete pending compliances
• Update MCA records
• Help inactive companies become dormant or close legally.

2. SCHEME PERIOD:

15 April 2026 to 15 July 2026

(Only filings made during this period will get benefit)

3. OPTIONS AVAILABLE UNDER THE SCHEME:

Companies can choose any one of the following:

Option-1: Complete Pending Annual Filings

• Pay Normal Filing Fees
• Pay only 10% of Additional Fees (instead of 100%)
• Benefit:

→Major relief in late filing penalty.

Option-2: Apply for Dormant Status (Section 455)

• File Form MSC-1
• Pay only 50% of normal filing fees.
• Benefits:

→Company remains registered

→Minimal compliance required

Option-3: Close the Company (Strike Off)

• File Form STK-2
• Pay only 25% of filing fees
• Benefits:

→Company name removed from ROC

→Useful for inactive or defunct companies

4. FORMS COVERED UNDER THE SCHEME:

• Under Companies Act, 2013: MGT-7 / MGT-7A, AOC-4 (all variants including XBRL, NBFC, CFS), ADT-1, FC-3 / FC-4.
• Under Companies Act, 1956: Form 20B, Form 21A, Form 23AC / 23ACA (including XBRL), Form 66 and Form 23B.

5. COMPANIES NOT ELIGIBLE:

The scheme does NOT apply to:

• Companies already issued final strike-off notice u/s 248;
• Companies that already applied for strike-off;
• Companies already applied for dormant status before scheme;
• Amalgamated or dissolved companies;
• Vanishing companies.

6. What Happens if You Do Not Avail the CCFS-2026 Scheme?

The General Circular No. 01/2026 states that after the scheme concludes on 15 July 2026, the Registrar of Companies (ROC) will initiate action against companies that fail to file pending documents within the scheme period.

Such enforcement actions may include:

• Adjudication under Section 454 of the Companies Act, 2013, imposing monetary penalties on the company and officers in default.
• Under Section 92(5), a penalty of ₹10,000 plus ₹100 per day of continuing default, subject to a maximum of ₹2,00,000 for the company and ₹50,000 for each officer.
• Under Section 137(3), the company may face ₹10,000 plus ₹100 per day (maximum ₹2,00,000), while the Managing Director, CFO, or responsible director may face ₹10,000 plus ₹100 per day (maximum ₹50,000 each).
• The ROC may also initiate suo motu strike-off proceedings under Section 248.
• Directors may face disqualification under Section 164(2)(a) for failure to file financial statements or annual returns for three consecutive financial years.

Conclusion

The Companies Compliance Facilitation Scheme 2026 (CCFS-2026) provides significant relief to Indian companies facing financial burdens due to delayed statutory filings. The scheme offers a 90% waiver on additional filing fees, a 50% concession on applications for dormant status, and a 75% fee reduction for striking off defunct companies, thereby creating a practical pathway for companies to regularize their compliance status.

This initiative is particularly beneficial for MSMEs, startups, One Person Companies (OPCs), and private companies that may have struggled to meet annual filing requirements due to financial or operational challenges. Companies and their directors should utilize the scheme during the period from 15 April 2026 to 15 July 2026 to review pending compliances and complete the necessary filings.

Failure to avail the scheme within the stipulated period may expose defaulting companies to enforcement actions by the Registrar of Companies under the Companies Act, 2013. Unlike the earlier Companies Fresh Start Scheme 2020 (CFSS-2020), no separate application is required under CCFS-2026; companies simply need to complete their pending filings on the MCA21 Portal while paying the reduced fees during the scheme period.

***This scheme provides the golden opportunity to clear old ROC filings at much lower penalty or legally close inactive companies***