The Ministry of Corporate Affairs (MCA) has introduced a one-time compliance relief initiative called the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) through General Circular No. 01/2026 dated 24 February 2026. The main objective of this scheme is to provide an opportunity to companies to regularize pending ROC filings at significantly reduced additional fees.

Many companies fail to complete annual compliance such as filing annual returns and financial statements due to financial constraints, lack of awareness, or operational challenges. Over time, penalties accumulate because delayed filings attract ₹100 per day additional fees without any maximum limit.

To provide relief and encourage compliance, the government launched CCFS-2026, which offers major concessions in late filing fees and other compliance costs.

Objective of the Companies Compliance Facilitation Scheme 2026

The scheme has been introduced with several key objectives:

Allow companies to complete pending ROC filings.
Reduce the financial burden of heavy late filing penalties.
Help companies regularize their compliance status.
Allow inactive companies to become dormant or close legally.
Update and clean the corporate registry maintained by MCA.

This initiative is especially beneficial for MSMEs, startups, One Person Companies (OPCs), and private companiesthat have pending compliance due to financial or operational difficulties.

Validity of the Scheme

The scheme is available only for a limited period of three months.

Particular	Details
Scheme Name	Companies Compliance Facilitation Scheme (CCFS-2026)
Circular	General Circular No. 01/2026
Start Date	15 April 2026
End Date	15 July 2026

Companies must complete all filings within this period to avail the benefits.

Major Benefits under CCFS-2026

1. 90% Relief on Additional Late Filing Fees

Normally, delayed ROC filings attract ₹100 per day additional fees with no maximum limit. Under CCFS-2026:

Companies need to pay normal filing fees
Plus only 10% of additional fees

This effectively provides 90% waiver on additional penalties.

Example

If additional late fees amount to ₹1,00,000:

Under normal rules → ₹1,00,000 payable
Under CCFS-2026 → ₹10,000 payable

Thus companies can save significant amounts.

2. Concessional Fee for Dormant Status

Companies that are not currently operating but want to keep their legal entity active can apply for Dormant Status under Section 455.

Under CCFS-2026:

Form MSC-1 can be filed
Only 50% of normal filing fees are payable.

Dormant companies have minimal compliance requirements compared to active companies.

3. Reduced Fee for Company Closure

If a company is no longer operational, it can opt for strike-off under Section 248.

Under CCFS-2026:

File Form STK-2
Pay only 25% of normal filing fees.

This helps defunct companies exit the system at lower cost.

Forms Covered Under the Scheme

The scheme covers major ROC compliance forms including:

Under Companies Act 2013

MGT-7 / MGT-7A – Annual Return
AOC-4 / AOC-4 XBRL – Financial Statements
ADT-1 – Auditor Appointment
FC-3 / FC-4 – Foreign Company Filings

Under Companies Act 1956

Form 20B
Form 21A
Form 23AC / 23ACA
Form 66
Form 23B

These forms can be filed with reduced additional fees during the scheme period.

Companies Not Eligible for the Scheme

The following companies cannot avail the CCFS-2026 scheme:

Companies already issued final strike-off notice under Section 248
Companies that have already applied for strike-off
Companies that have already applied for dormant status
Amalgamated or dissolved companies
Vanishing companies.

Step-by-Step Process to Avail the Scheme

Companies can avail the benefits of CCFS-2026 by following these steps:

Identify pending filings
- Check overdue annual returns and financial statements.
Prepare necessary documents
- Financial statements
- Board resolutions
- Auditor details.
Login to MCA-21 Portal
File relevant e-forms
- MGT-7 / MGT-7A
- AOC-4
- ADT-1 etc.
Pay reduced fees
- Normal filing fees + 10% additional fees.
Choose the appropriate option
- Continue operations
- Apply for dormant status
- Apply for strike-off.

What Happens If Companies Do Not Use the Scheme?

If companies fail to avail this scheme before 15 July 2026, the Registrar of Companies (ROC) may initiate strict actions including:

Monetary penalties under Section 454
Penalty under Section 92(5) for failure to file annual return
Penalty under Section 137(3) for failure to file financial statements
Strike-off of company name
Disqualification of directors under Section 164.

Therefore companies should take advantage of this scheme before the deadline.

Why This Scheme is Important

The Companies Compliance Facilitation Scheme 2026 is considered a major relief measure for defaulting companiesbecause it:

Reduces heavy compliance penalties
Allows companies to correct past non-compliance
Improves corporate transparency
Helps maintain accurate MCA records
Supports ease of doing business in India.

For many companies with multiple years of pending filings, the savings from reduced penalties can run into lakhs of rupees.

The Companies Compliance Facilitation Scheme 2026 (CCFS-2026) provides a golden opportunity for companies with pending ROC filings to regularize compliance at significantly lower cost. With 90% waiver on additional late fees, concessional rates for dormant status, and reduced fees for company strike-off, this scheme offers a practical solution for businesses facing compliance challenges.

Companies should review their pending filings and complete them during the scheme period from 15 April 2026 to 15 July 2026 to avoid heavy penalties and enforcement action from the ROC.

Disclaimer

The contents of this article are for general informational purposes only and are intended to provide quick access to tax information. Readers are advised to verify the provisions with the Income-tax Act, relevant rules, notifications, and official government sources before making financial decisions.

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