Companies Compliance Facilitation Scheme, 2026 (CCFS-2026)

A One-Time Compliance Relief Opportunity for Companies

The Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) has been introduced by the Ministry of Corporate Affairs (MCA) to provide much-needed relief to companies that have failed to complete their statutory filings on time. This scheme offers a one-time chance to regularise past defaults at a substantially reduced cost, without the burden of heavy additional fees and penalties.

This initiative is especially beneficial for MSMEs, private companies, OPCs, start-ups, and inactive companies that have accumulated high late fees due to delayed annual filings.

Mandatory Filings Under Companies Act

Every company registered under the Companies Act 2013 must file:

• Annual Return
• Financial Statements

Since 1 July 2018, delayed filings attract an additional fee of ₹100 per day with no maximum limit, which often leads to very high compliance costs. Many companies, despite being genuine businesses, have been unable to meet these costs and have continued to remain non-compliant.

To address this issue and to improve the accuracy of corporate records, MCA has introduced CCFS-2026 as a compliance facilitation and correction measure, rather than a penal action.

Period of the Scheme

Companies must complete their filings or opt for dormancy/closure within this limited period to avail the benefits.

Objectives of CCFS-2026

• Reduce compliance burden on companies
• Encourage timely statutory filings
• Update and clean the MCA corporate registry
• Enable inactive or non-operational companies to exit or become dormant in a cost-effective manner
• Promote ease of doing business in India

Who is Eligible?

The scheme applies to all companies including inactive companies except:

• Companies against which final action for strike-off has already been initiated by the Registrar
• Companies that have already applied for strike-off
• Companies that obtained dormant status before the scheme
• ompanies dissolved under amalgamation
• Vanishing companies

Options Available Under CCFS-2026

Eligible companies may choose any one of the following options, depending on their business status:

1. Filing Pending Annual Returns & Financial Statements

Companies can file pending forms by paying normal filing fees plus only 10% of the applicable additional fees.

Forms covered include:

• MGT-7 / MGT-7A
• AOC-4
• ADT-1
• Other notified forms

2. Apply for Dormant Company Status

Companies that are inactive and not carrying on significant business activity may apply for Dormant Status under Section 455 of the Companies Act, 2013.

Under CCFS-2026:

• Application can be made through Form MSC-1
• Only 50% of the normal filing fee is payable

3.Applying for Strike Off (Closure of Company)

Companies that are no longer operational and do not intend to continue business may opt for voluntary strike off.

Under the scheme:

Application can be filed in Form STK-2

Only 25% of the prescribed filing fee is payable

This provides a cost-effective and compliant exit route for defunct companies.

Immunity for Annual Return and Financial Statements

For defaults under Sections 92 and 137:

No penalty will be levied if pending filings are made before issuance of a notice by the adjudicating officer.

If a notice has already been issued, immunity will still be available if filings are completed within 30 days from the date of the notice.

However, if filings are made after 30 days, or if a penalty order has already been passed, the liability to pay penalties will remain unchanged, even if filings are completed under the scheme.

Immunity for Other Statutory Forms

Immunity from future penal action is also available for delayed filing of certain other statutory forms (such as ADT-1, FC-3, FC-4 and other specified forms), provided that:

• The forms are filed during the scheme period, and
• No prosecution or adjudication proceedings were initiated before such filing.

Consequences of Not Availing the Scheme

After the closure of CCFS-2026:

• Registrars of Companies (RoCs) will initiate strict action
• Companies may face heavy penalties
• Directors may face disqualification
• Strike off proceedings may be initiated
• Additional filing fees will again become payable without any relaxation

Compliance Highlight

CCFS-2026 is a one time opportunity for companies to regularise past compliances at a significantly reduced cost and, in many cases, without penalties.

Companies that act early can save substantial additional fees, avoid penal consequences, and choose the most suitable path compliance, dormancy, or closure.

Failure to utilise this limited window may result in strict regulatory action and higher financial exposure.

Act Now : This is a Limited Time Opportunity!

CCFS-2026 is a one time window. Companies are strongly advised to act early to avoid last minute technical or procedural issues.

For professional assistance and compliance evaluation, please contact our team today.