The Ministry of Corporate Affairs (MCA), through General Circular No. 01/2026 dated 24 February 2026, has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). This one-time scheme is designed to help companies clear pending annual filing defaults, reduce heavy additional filing fees, and encourage inactive entities to either become dormant or apply for closure.
For many companies, especially MSMEs, private limited companies, OPCs, and producer companies, delayed filing of annual returns and financial statements often results in significant financial burden due to steep additional fees. Under the Companies Act, 2013, delayed filing attracts an additional fee of Rs. 100 per day without any upper limit, which has made long-pending compliance difficult for many businesses. The new scheme offers much-needed relief by allowing defaulting companies to regularise their status at a substantially reduced cost.
What is CCFS-2026?
CCFS-2026 is a time-bound compliance relief scheme launched by the MCA to condone delay in filing annual return and financial statement related documents. It also provides a one-time opportunity for inactive or defunct companies to either obtain dormant status or apply for strike off at concessional fees. The objective is to improve compliance levels and ensure that the MCA registry reflects accurate and updated corporate information.
Effective Period of the Scheme
The scheme will be available from 15 April 2026 to 15 July 2026. Companies wishing to take advantage of the benefits under this scheme must act within this window.
Key Benefits of CCFS-2026
Under the scheme, companies/inactive companies have option to:
- complete pending annual filings by paying only 10% of the total additional fees payable on account of delays; or
- apply for dormant company status by filing e-form MSC-1 and paying 50% of the normal filing fee; or
- file STK-2 for strike off by paying only 25% of the applicable filing fee.
Forms Covered Under CCFS-2026
The scheme covers important forms such as:
- MGT-7 / MGT-7A
- AOC-4
- AOC-4 CFS
- AOC-4 NBFC (Ind AS)
- AOC-4 CFS NBFC (Ind AS)
- AOC-4 XBRL
- ADT-1
- FC-3
- FC-4
- and certain older forms under the Companies Act, 1956 such as Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66 and Form 23B.
Who Can Avail the Scheme?
The scheme is applicable to all companies, except the following:
- Companies against which final notice for strike off under Section 248 has already been initiated
- Companies that have already filed an application for strike off
- Companies that applied for dormant status before the inception of this scheme
- Companies dissolved under a scheme of amalgamation
- Vanishing companies
Immunity from Penalty Proceedings
The scheme also addresses the issue of penal consequences in certain cases. This is especially relevant for defaults under Section 92 and Section 137 of the Companies Act, 2013, which deal with filing of annual return and financial statements respectively.
According to the circular, if the relevant filings are made under the scheme:
- before the issuance of notice by the adjudicating officer, or
- within 30 days of the issuance of such notice,
then the proceedings under those sections will be concluded and no penalty shall be levied.
However, this relief has limits. Where:
- the filing is made after the expiry of 30 days from the adjudication notice, or
- an adjudication order imposing penalty has already been passed,
then the liabilities of the company and its officers to pay penalties will continue unchanged. In such cases, the scheme only reduces filing fee exposure and does not undo penalties already crystallised.
Immunity in Case of Other Forms
For forms such as ADT-1, FC-3, FC-4, Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66, and Form 23B, immunity against prospective penal action is also available, but only if:
- the forms are filed under the scheme, and
- no prosecution has already been filed or adjudication proceedings have already been initiated through issuance of a show cause notice before filing.
This means the scheme can still provide strong relief in many cases, but businesses must act before enforcement proceedings progress too far.
What Happens After the Scheme Ends?
The MCA has clearly stated that once the scheme concludes, the concerned Registrars of Companies will take necessary action under the Companies Act against companies that do not avail of the scheme and continue to remain in default.
This means CCFS-2026 should not be seen merely as a temporary concession, but as a final opportunity to correct long-pending defaults before stricter action is initiated.