COMPANIES COMPLIANCE FACILITATION SCHEME, 2026 (CCFS-2026): A BIG RELIEF FOR DEFAULTING COMPANIES

Christy Mathew
CS Trainee

27-Feb-2026

Compliance delays under the Companies Act can quickly escalate into substantial additional fees and Statutory liability. Recognising this growing concern among defaulting companies, the Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) vide General Circular No. 01/2026 dated 24 February 2026. This time-bound compliance window offers companies an opportunity to regularise long-pending statutory filings at significantly reduced additional fees, along with conditional immunity from penalties.

1. Background and Objective

Over the years, several companies have accumulated significant additional fees due to delays in filing annual returns and financial statements and other e-forms. Recognising the financial burden created by the additional fee regime, the MCA has introduced CCFS-2026 as a compliance amnesty measure.

The Scheme aims to:

• Provide a cost-effective mechanism for regularisation
• Improve overall corporate compliance levels
• Encourage voluntary correction of defaults
• Offer structured exit options for inactive and defunct companies

2. Operative Period

The Scheme will remain in force from:

15 April 2026 to 15 July 2026

This is a one-time, three-month window, and the benefits under the Scheme are available strictly during this period.

3. Options Available Under CCFS-2026

The Scheme provides three distinct strategic routes for addressing non-compliance:

A. Filing of Pending Annual Returns and Financial Statements

Companies may file their pending statutory returns by:

• Paying the normal filing fees, and
• Paying only 10% of the total additional fees otherwise payable

This significantly reduces the financial burden on companies with prolonged filing defaults.

B. Application for Dormant Status (Section 455 of the Companies Act, 2013)

Inactive companies that wish to retain their corporate status may apply for dormant status by:

• Filing e-Form MSC-1
• Paying only 50% of the normal filing fee

This option is suitable for companies with no significant operations but which intend to preserve the entity for future use with minimal compliance requirements.

C. Strike-Off of Company (Section 248 of the Companies Act, 2013)

Defunct companies not intending to continue business may opt for voluntary strike-off by:

• Filing e-Form STK-2
• Paying only 25% of the applicable filing fees

This provides a cost-efficient exit mechanism for non-operational entities.

4. Forms Covered Under the Scheme

The Scheme covers key statutory forms, including:

Annual Compliance

• MGT-7 / MGT-7A – Annual Return
• AOC-4 – Financial Statements (including XBRL, CFS, and NBFC variants)

Audit Compliance

• ADT-1 – Appointment of Auditors

Foreign Companies

• FC-3 and FC-4

Legacy Forms

• Forms 20B, 21A, 23AC, 23ACA, 23B, and 66

This wide coverage ensures that both current and historical filing defaults can be regularised.

5. Penalty Immunity: Terms and Conditions

One of the key highlights of CCFS-2026 is the grant of immunity from prosecution and monetary penalties, subject to compliance within prescribed timelines.

Full Immunity is Available If:

• Filings are completed before issuance of a notice by the Adjudicating Officer (AO), or
• Filings are completed within 30 days from the date of such notice

Immunity Will Not Be Available If:

1. The 30-day period from the AO’s notice has already expired
2. An adjudication order imposing penalty has already been passed
3. The default pertains to matters other than filing delays

6. Companies Not Eligible Under the Scheme

The Scheme is not applicable to:

• Companies against which a final strike-off notice has already been issued
• Companies that have already applied for strike-off prior to the Scheme
• Companies that applied for dormant status before commencement of the Scheme
• Companies dissolved pursuant to amalgamation
• Vanishing companies

7. Post-Scheme Consequences

After 15 July 2026, the following consequences will apply:

• Regular additional fee provisions will be restored
• The Registrar of Companies (ROC) may initiate action against non-compliant companies
• Adjudication proceedings and prosecution actions may be initiated

Companies failing to act within the Scheme window may face significantly higher financial and legal exposure.

8. Conclusion

The Companies Compliance Facilitation Scheme, 2026 is a significant compliance amnesty initiative aimed at:

• Reducing financial burden on defaulting companies
• Improving compliance levels
• Facilitating voluntary regularisation
• Providing structured exit routes for defunct entities

Companies with pending filings should undertake an immediate compliance review and avail this limited-period opportunity.

If required, we can assist with:

• Compliance status review
• Calculation of additional fee exposure
• Filing of pending annual returns
• Dormancy applications
• Strike-off process

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