The Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), granting a one-time opportunity for companies to regularize pending annual filings at significantly reduced additional fees. The Scheme allows defaulting companies to file overdue annual returns and financial statements by paying only 10% of the additional fees otherwise payable for delays.

The Scheme has been notified through General Circular No. 01/2026 dated February 24, 2026.

Background: Escalating Additional Fees Since 2018

Under Section 403 of the Companies Act, 2013 read with the Companies (Registration Offices and Fees) Rules, 2014, companies are required to file annual returns and financial statements within prescribed timelines. With effect from July 1, 2018, delayed filings attract an additional fee of ₹100 per day without any upper limit. This provision has led to a substantial financial burden on companies that failed to complete their annual compliances on time.

The MCA noted that India now has over 20 lakh active companies, including MSMEs, OPCs, producer companies, and several new-age enterprises. Representations were received from stakeholders seeking relief from mounting additional fees, particularly for small and inactive companies struggling with compliance backlogs.

Objective of the Companies Compliance Facilitation Scheme, 2026

Invoking its powers under Sections 460 and 403 of the Companies Act, 2013, the Central Government has decided to condone delays in filing specified documents through CCFS-2026. The Scheme aims to improve compliance levels, update corporate registry records, and facilitate ease of doing business. It also seeks to encourage inactive or defunct companies to opt for dormancy or closure through a reduced-fee framework.

Companies Compliance Facilitation Scheme, 2026 Period

The Companies Compliance Facilitation Scheme, 2026 will come into force on April 15, 2026 and remain operational until July 15, 2026. Companies must complete eligible filings within this period to avail the benefits.

Relief for Pending Annual Filings

Under the Scheme, companies may file overdue annual return and financial statement forms, including MGT-7, MGT-7A, AOC-4 and its variants, ADT-1, FC-3, FC-4, and certain legacy forms under the Companies Act, 1956. Companies availing the Scheme will be required to pay the normal filing fees along with only 10% of the additional fees otherwise applicable for delayed filing.

Option to Obtain Dormant Status

Inactive companies may apply for dormant status under Section 455 of the Companies Act, 2013 by filing Form MSC-1 during the Scheme period. Such applications will be accepted on payment of only half of the normal filing fees prescribed under the Rules. Dormant status allows companies to remain on the register with minimal compliance requirements.

Strike-Off at Reduced Fees

Companies wishing to close operations may apply for strike-off by filing Form STK-2 during the currency of the Scheme. In such cases, only 25% of the prescribed filing fee under the Companies (Removal of Name of Companies from the Register of Companies) Rules, 2016 will be payable.

Immunity from Penalties: Scope and Limitations

The circular clarifies the scope of immunity from penalties under Sections 92 and 137 of the Companies Act, 2013. Where filings are made under the Scheme before issuance of notice by the adjudicating officer, or within thirty days of issuance of such notice, the relevant proceedings will be concluded and no penalty will be levied.

However, where the thirty-day period from issuance of notice has expired, or where an adjudication order imposing penalty has already been passed, the liability to pay penalties will remain unaffected. In such cases, only the filing fee relief under the Scheme will apply.

For certain other forms, including ADT-1, FC-3, FC-4 and legacy forms under the Companies Act, 1956, immunity from prospective penal action will be available only if no prosecution or adjudication proceedings were initiated prior to filing under the Scheme.

Companies Not Eligible

The Scheme does not apply to companies against which final notice for strike-off under Section 248 has already been initiated, companies that have already applied for strike-off, companies that obtained dormant status prior to the Scheme, companies dissolved pursuant to amalgamation, and vanishing companies.

Enforcement After Scheme Closure

The MCA has clarified that upon conclusion of the Scheme on July 15, 2026, Registrars of Companies will initiate necessary action under the Act against companies that fail to avail the Scheme and continue to remain in default.

Notification Details

General Circular No. 01/2026

Date: 24th February, 2026