For many businesses, regulatory compliance often takes a backseat while management focuses on growth, expansion and day-to-day operations. However, delayed statutory filings under the Companies Act, 2013 can gradually accumulate into significant additional costs, regulatory scrutiny and legal consequences.
Recognising these practical challenges, the Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS Scheme)—a welcome initiative that offers companies a valuable opportunity to regularise long-pending compliances at substantially reduced costs.
With the Scheme available only until 31 August 2026, companies should carefully evaluate whether they can utilise this one-time window to bring their statutory records up to date and avoid unnecessary financial and legal exposure.
Why the CCFS Scheme Matters
India today has nearly 20 lakh active companies, reflecting the country’s rapidly growing entrepreneurial ecosystem and the Government’s continued focus on improving the ease of doing business. States such as Maharashtra, Delhi and West Bengal account for a significant share of these registered entities.
As businesses continue to grow, many companies—particularly startups, MSMEs, family-owned businesses and inactive companies—often find themselves burdened with pending annual filings, accumulated additional fees and compliance defaults.
The CCFS Scheme acknowledges these realities and provides a practical mechanism to help companies restore compliance without bearing the full financial burden of accumulated additional filing fees.
Understanding the Scheme
Under the Companies Act, 2013, every company is required to file its annual financial statements and annual returns within the prescribed timelines. Delays attract additional fees under Section 403 of the Act read with the Companies (Registration Offices and Fees) Rules, 2014.
Since 2018, delayed filings have attracted an additional fee of ₹100 per day, resulting in substantial financial liabilities for many companies over time.
Responding to representations received from stakeholders, the MCA introduced the Companies Compliance Facilitation Scheme, 2026, effective from 15 April 2026, which has now been extended until 31 August 2026 through General Circular No. 03/2026.
The Scheme provides companies with a one-time opportunity to:
- file overdue statutory documents at significantly reduced additional fees;
- obtain dormant company status where business operations have ceased; or
- voluntarily strike off the company’s name where the entity is no longer required.
Key Benefits Under the Scheme
One of the most attractive aspects of the Scheme is the substantial reduction in compliance costs.
Eligible companies may:
- file pending statutory returns by paying only 10% of the applicable additional filing fees;
- apply for Dormant Company Status (Form MSC-1) by paying only 50% of the prescribed filing fee under Section 455 of the Companies Act, 2013; or
- file Form STK-2 for voluntary strike-off by paying only 25% of the applicable filing fee.
For companies carrying years of pending compliances, these concessions can translate into considerable financial savings.
Who Can Avail the Scheme?
The Scheme is available to most companies with pending statutory filings.
However, it does not apply to:
- companies against which the Registrar has already initiated final strike-off proceedings;
- companies that have already applied for strike-off;
- companies that have already applied for dormant status under Section 455;
- dissolved companies; and
- vanishing companies.
Forms Covered
The Scheme covers several important statutory filings, including:
- MGT-7 and MGT-7A
- AOC-4 and its various versions
- ADT-1
- FC-3 and FC-4
- Form 20B
- Form 21A
- Form 23AC and Form 23ACA
- XBRL variants
- Form 66
- Form 23B
Companies with pending filings under these forms should review their compliance status without delay to determine their eligibility.
Immunity from Penalties—But Only Within Prescribed Timelines
An equally important feature of the Scheme is the limited immunity from penalties.
Where eligible e-forms are filed before any adjudication notice is issued, or within thirty days of receiving such notice, companies may obtain immunity from the applicable penalties.
However, companies should note that this benefit is not unconditional.
If an adjudication order has already been passed, or the thirty-day period has expired, the penalties already imposed will continue to remain payable.
It is equally important to understand that the Scheme grants relief only from specified penalties. It does not waive the statutory filing fees payable under Section 403 of the Companies Act, 2013.
Why Companies Should Act Now
Many businesses view delayed ROC filings as routine compliance issues. In reality, prolonged non-compliance can affect:
- corporate governance standards;
- fundraising and investor due diligence;
- banking relationships;
- mergers and acquisitions;
- regulatory inspections; and
- the overall credibility of the company.
The CCFS Scheme offers companies an opportunity not only to reduce compliance costs but also to strengthen their legal standing before undertaking future business expansion, investments or restructuring.
With the deadline fast approaching, companies should review their pending filings, assess their eligibility under the Scheme and determine the most appropriate course of action—whether regularising defaults, obtaining dormant status or opting for voluntary strike-off.
Final Thoughts
The Companies Compliance Facilitation Scheme, 2026 reflects the Government’s continued effort to encourage voluntary compliance rather than punitive enforcement. For businesses with historical filing defaults, this is more than a fee concession—it is an opportunity to reset their compliance position and move forward with greater regulatory certainty.
As the Scheme remains available only until 31 August 2026, companies would be well advised to undertake a timely compliance review and ensure that this one-time opportunity is not missed.
FAQs
What is the Companies Compliance Facilitation Scheme, 2026?
The CCFS Scheme is a one-time compliance window introduced by the Ministry of Corporate Affairs that enables eligible companies to file pending statutory documents, apply for dormant status or seek voluntary strike-off at substantially reduced fees.
What financial benefits does the Scheme offer?
Companies can file overdue returns by paying only 10% of the applicable additional fees, apply for dormant status by paying 50% of the prescribed filing fee, or seek voluntary strike-off through Form STK-2 by paying only 25% of the applicable filing fee.
Which companies are not eligible?
The Scheme excludes companies already facing final strike-off action, companies that have applied for strike-off or dormant status, dissolved companies and vanishing companies.
Which ROC forms are covered?
The Scheme covers major statutory forms including MGT-7, MGT-7A, AOC-4 and its variants, ADT-1, FC-3, FC-4, Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 66, Form 23B and the relevant XBRL forms.
Does the Scheme waive penalties?
Yes—but only where the prescribed conditions are satisfied. Immunity is available if filings are completed before the adjudicating authority issues a notice or within thirty days of receiving such notice. Existing penalties imposed after that stage continue to remain payable.
What is the last date to avail the Scheme?
The Scheme is presently available until 31 August 2026, making it important for companies to evaluate their compliance position well before the deadline.
