Introduction
In a major move to enhance the ease of doing business, the Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). This initiative is designed to help companies particularly MSMEs, new-age entrepreneurs, and all other Companies clear their backlog of statutory filings and ensure the national corporate registry reflects accurate, up-to-date information.
Background and Rationale
With the number of active companies in India now exceeding 20 lakh, the government has observed a corresponding increase in the formalization of the economy. However, many entities have struggled to complete annual compliances on time. Under the Companies Act, 2013, late filings for annual returns and financial statements incur an additional fee of Rs. 100 per day without an upper limit, which can create a severe financial burden for smaller businesses. Responding to various stakeholder representations, the MCA launched CCFS-2026 to provide a window for compliance with significantly reduced financial penalties.
Key Benefits of the Scheme
The scheme offers three primary areas for companies to regularize their status:
A. Pending Annual Filings: Companies can complete overdue filings by paying the normal fee plus only 10% of the total additional fees that would otherwise be due for the following forms:
1. Under Companies Act, 2013: Form MGT-7, Form MGT-7A, Form AOC-4, Form AOC-4 CFS, Form AOC-4 NBFC (Ind AS), Form AOC-4 CFS NBFC (Ind AS), Form AOC-4 (XBRL), Form ADT-1, Form FC-3 and Form FC-4
2. Under Companies Act 1956: Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66 and Form 23B.
B. Dormancy: Inactive companies can opt for “dormant” status under section 455 by filing Form MSC-1 at 50% of the normal fee, allowing them to remain on the register with minimal compliance requirements.
C. Company Closure: Defunct entities wishing to be “struck off” the register can file Form STK-2 by paying only 25% of the standard filing fee.
Below is a table representing the normal and additional fees payable under The Scheme:
| Sr. No. | Type of Filing under The Scheme | Fees Payable |
| 1 | Pending Annual Filing | Normal Fees as prescribed in the Rules +
10% of Additional Fees as prescribed in the Rules |
| 2 | eForm MSC-1 for obtaining Dormancy Status | 50% of normal filing fees applicable |
| 3 | eForm STK-2 for company Closure | 25% of applicable fees |
Immunity and Legal Protection
A major highlight of CCFS-2026 is the immunity from prosecution and penalties. Companies that file their annual returns and financial statements under this scheme either before receiving an adjudication notice or within 30 days of receiving one will see their proceedings concluded with no penalty leviable. Furthermore, immunity from prospective penal action is granted for filing of eforms ADT-1, FC-3, FC-4, Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC XBRL, Form ACA XBRL, Form 66 and Form 23B provided no prosecution or adjudication proceedings had started prior to the filing under this scheme.
Applicability and Exclusions
The scheme is broadly applicable to all companies, with a few specific exceptions. It does not apply to:
1. Companies already facing final strike-off notices initiated by the Registrar.
2. Entities that already applied for strike-off or dormant status before the scheme began.
3. Companies dissolved via amalgamation.
4. “Vanishing companies”.
Important Timeline
The CCFS-2026 will be active for a strictly limited three-month window:
Commencement Date: 15th April 2026.
Expiry Date: 15th July 15, 2026.
Conclusion
The MCA has signaled that this is a final opportunity for leniency. Once the scheme concludes on July 15, 2026, Registrars of Companies are directed to take necessary action under the Act against any companies that remain in default. For businesses looking to clean up their records at a fraction of the usual cost, this scheme represents a vital “fresh start” opportunity.
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Disclaimer: The above information is intended for academic guidance and is to be used for informative purpose only. The said information is not to be considered as an opinion or advice. The aforesaid information is proprietary and privileged and is not to be used, reproduced and disclosed without consent. It is advisable to check with a subject matter expert before concluding on applicability or non-applicability of any compliance under any legislature. The views expressed are strictly personal. This article is written using assistance of AI tools.
The above article is written by CS Divya Suratwala. The author can be reached at divya.smsco@gmail.com. CS Divya Suratwala is an Associate Member of the Institute of Company Secretaries of India (ICSI) and a CA Intermediate professional with over 5 years of experience in regulatory, corporate law, compliance and advisory services.
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