The Ministry of Corporate Affairs has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) through General Circular No. 01/2026 dated 24 February 2026. The purpose of this scheme is to reduce the financial burden created by the high additional fees applicable on delayed filing of Annual Returns and Financial Statements. The notification clearly records that companies have been struggling with the penalty of ₹100 per day without any upper limit, and therefore the Government has decided to allow a one-time opportunity to complete all pending filings at a highly discounted rate.

The Scheme is applicable from 15 April 2026 and remains valid until 15 July 2026. During this period, any defaulting company may file its overdue Annual Returns, Financial Statements and other prescribed forms by paying only 10% of the total additional fees that would normally be payable. This means that ninety percent of the additional fee is waived during the scheme period.

Scheme Validity

The objective of the scheme is not only to assist companies that have defaulted in compliance, but also to ensure that the MCA-21 registry contains updated, accurate and transparent information. Many companies, especially MSMEs and inactive entities, have remained non-compliant due to financial constraints, operational challenges or technical issues. CCFS-2026 is designed to provide relief to such companies and encourage them to regularise their filings.

Forms Covered Under CCFS-2026

The Scheme also offers two important options for inactive companies. The first option is to apply for the status of a dormant company by filing Form MSC-1 at fifty percent of the normal fee. The second option is to apply for strike-off by filing Form STK-2 by paying only twenty-five percent of the applicable filing fee. These options reduce the cost of closure or dormancy and help companies avoid unnecessary ongoing compliance.

There are, however, certain exclusions. Companies against which the Registrar of Companies has already issued a final strike-off notice under Section 248 are not eligible. Companies that have already applied for strike-off or dormant status prior to the commencement of the scheme are also excluded. Vanishing companies and companies dissolved through amalgamation do not fall within the scheme’s scope.

Fee Structure Under CCFS-2026

A key feature of the scheme is the immunity provision. When a company files its pending Annual Return or Financial Statement before the issuance of an adjudication notice, or within thirty days after such notice, no penalty will be levied under Section 92 or Section 137. For other forms such as ADT-1, FC-3, FC-4 and old Act forms, immunity is granted for delayed filing only when no prosecution or adjudication notice was issued prior to filing under the scheme. This protects companies from penal consequences when they regularise their filings within the scheme period.

The Ministry has also clarified that after the end of the scheme, the Registrar of Companies will initiate appropriate action against companies that do not avail the benefit and continue to remain non-compliant. Therefore, companies with pending filings must utilise this opportunity before the closing date of 15 July 2026 to avoid heavy penalties, strike-off or future disqualification of directors.

In conclusion, the Companies Compliance Facilitation Scheme, 2026 is an important and time-bound opportunity for companies to clean up their compliance backlog at a fraction of the usual cost. The ninety percent reduction in additional fees, combined with immunity from penalties and discounted options for dormancy or closure, makes this one of the most beneficial schemes introduced in recent years. Companies are encouraged to review their filing history immediately and take advantage of this limited-period relief to ensure that their corporate records are compliant, updated and fully aligned with the requirements of the Companies Act.