MCA Announces Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): A Golden Opportunity for Defaulting Companies

MCA Announces Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): A Golden Opportunity for Defaulting Companies

The Ministry of Corporate Affairs (MCA) has introduced a major relief measure for Indian companies struggling with compliance backlogs. Issued via General Circular No. 01/2026 on 24th February 2026, the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) offers a one-time window to clear pending statutory filings at significantly reduced costs.

This scheme is specifically aimed at improving compliance levels, updating the corporate registry, and alleviating the financial burden on MSMEs and private companies that have failed to file their annual returns and financial statements on time.

Why Was CCFS-2026 Introduced?

Under the Companies Act, 2013, filing Annual Returns and Financial Statements is mandatory. Since 1st July 2018, the MCA has levied a strict additional fee of Rs. 100 per day for delayed filings, with no upper limit. For companies—especially start-ups, MSMEs, and producer companies—that missed deadlines, these accumulating fees quickly became an insurmountable financial hurdle.

To ensure ease of doing business and allow entities to make a fresh start, the Central Government has exercised its powers to condone these delays through CCFS-2026.

Key Features and Benefits of the Scheme

The CCFS-2026 scheme is valid from 15th April 2026 to 15th July 2026. During this window, companies can choose one of three highly beneficial paths:

Massive Fee Reduction for Active Companies: File all pending relevant e-forms (such as AOC-4, MGT-7, MGT-7A, ADT-1, etc.) by paying normal fees plus only 10% of the total additional fees.

Cheap Transition to Dormancy: Inactive entities can retain their corporate status with minimal compliance by filing for 'dormant company' status (e-form MSC-1) at half (50%) of the normal filing fee.

Cost-Effective Closure: Companies wishing to shut down can apply to strike off their name (e-form STK-2) by paying just 25% of the standard filing fee.

Immunity from Prosecution

A major advantage of CCFS-2026 is the immunity it grants. If a company files its pending documents under this scheme, proceedings under Section 92 or 137 of the Act will be concluded without penalties, provided the filing is done before an adjudicating officer issues a notice, or within 30 days of such notice being issued. For other specific forms (like ADT-1 or Form 20B), immunity from prospective penal action is granted as long as no prosecution or adjudication has been initiated prior to filing under the scheme.

Who Cannot Avail the Scheme?

The scheme is broad but excludes specific entities. You cannot apply if:

• Your company has already received a final notice for striking off under Section 248.

   

• Your company has already applied for striking off.

   

• Your company applied for Dormant Status before the scheme began.

   

• Your company has been dissolved through amalgamation or is categorized as a "vanishing company".

   

Practical Example: The Financial Impact of CCFS-2026

To understand exactly how beneficial this scheme is, let us look at a practical scenario for a company that has missed its annual filings (AOC-4 and MGT-7/7A) for the last two financial years: FY 2023-24 and FY 2024-25.

Assumption: The company held its Annual General Meeting (AGM) on the standard due date of 30th September for both years. Therefore, AOC-4 was due by 29th October (30 days post-AGM) and MGT-7 was due by 29th November (60 days post-AGM).

If this company decides to clear its backlog on the day the scheme opens—15th April 2026—here is a breakdown of the additional fees they would face without the scheme, versus what they will actually pay under CCFS-2026.

Without CCFS-2026, the company would be staring at a crippling late fee penalty of ₹1,33,600 just to get its books legally compliant (not including the normal filing fees). Under the CCFS-2026 scheme, that penalty is slashed by 90%, bringing the total additional fee down to just ₹13,360. This represents a massive saving of ₹1,20,240, alongside total immunity from further adjudication penalties for these delays.

Important Note: Upon the closure of the Scheme on 15 July 2026, the Registrars of Companies may initiate appropriate action against companies that continue to remain in default.

List of Forms Covered under CCFS 2026 Scheme

Here is the division of the forms based on the exact percentage of the fees waived:

1. Forms with 90% Waiver on Additional Fees

(You pay only 10% of the prescribed additional fees for delays, plus the normal filing fee)

This category includes all the "relevant e-forms" for annual statutory filings.

Under Companies Act, 2013:

• MGT-7 (Annual Return)
• MGT-7A (Annual Return for OPCs/Small Companies)
• AOC-4 (Financial Statements)
• AOC-4 CFS (Consolidated Financial Statements)
• AOC-4 NBFC (Ind AS) (Financial Statements for NBFCs)
• AOC-4 CFS NBFC (Ind AS) (Consolidated Financial Statements for NBFCs)
• AOC-4 XBRL (XBRL Financial Statements)
• ADT-1 (Appointment of Auditor)
• FC-3 (Annual Return of Foreign Company)
• FC-4 (Annual Return of Foreign Company)

Under Companies Act, 1956:

• Form 20B (Annual Return - share capital)
• Form 21A (Annual Return - no share capital)
• Form 23AC (Balance Sheet)
• Form 23ACA (Profit and Loss)
• Form 23AC-XBRL (XBRL Balance Sheet)
• Form 23ACA-XBRL (XBRL Profit and Loss)
• Form 66 (Compliance Certificate)
• Form 23B (Information by Auditor)

2. Forms with 50% Waiver on Normal Filing Fees

(You pay one-half / 50% of the normal filing fee applicable under the rules )

This category applies to companies choosing to halt operations temporarily rather than filing past compliance documents.

• MSC-1: Application for obtaining the status of a "dormant company".

3. Forms with 75% Waiver on Normal Filing Fees

(You pay only 25% of the applicable filing fee under the rules )

This category applies to companies choosing to permanently close down.

• STK-2: Application for striking off the company name from the register.

Disclaimer  The information provided in this article is for general informational purposes only and does not constitute professional legal or financial advice. While every effort has been made to ensure the accuracy of the content based on the General Circular No. 01/2026 dated 24th February 2026 (F.No. Policy-02/2/2020-CL-V), readers are strongly advised to thoroughly review the original General Circular No. 01/2026 issued by the Ministry of Corporate Affairs (MCA), Keep a close watch on the official MCA portal for any subsequent corrigendum, clarifications or updates.