Companies Compliance Facilitation Scheme, 2026 (CCFS-2026): Complete Guide, Benefits, FAQs

On 24 February 2026, the Ministry of Corporate Affairs issued General Circular No. 01/2026 and introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). Through this Scheme, the Ministry offers companies a one-time chance to regularise long-pending statutory filings at sharply reduced additional fees. It also provides simpler options for dormancy or closure.

Why the Scheme Was Introduced

Under the Companies Act, 2013, every company must file its Annual Return and Financial Statements within prescribed timelines. Section 403 of the Act, read with the Companies (Registration Offices and Fees) Rules, 2014, requires companies to pay additional fees for delayed filings. Since 1 July 2018, the law has imposed an additional fee of Rs. 100 per day for delays, without any upper limit.

Meanwhile, the number of active companies in India has crossed 20 lakh. At the same time, participation from MSMEs, startups, producer companies, and One Person Companies (OPCs) has increased significantly. As a result, many companies have struggled to keep up with compliance requirements. Consequently, they have accumulated substantial additional fee liabilities.

To address this situation and improve overall compliance levels, the Ministry introduced CCFS-2026.

CCFS-2026 Scheme Duration (15 April to 15 July 2026)

The Scheme will remain in force from 15 April 2026 to 15 July 2026. Therefore, companies must act within this three-month window to benefit from it.

Benefits and Relief Available Under CCFS-2026

1. Completion of Pending Annual Filings

First, companies may file their pending Annual Returns and Financial Statements by paying:

• Normal filing fees; and
• Only 10% of the total additional fees otherwise payable for delay.

For example, if a delay results in Rs.1,00,000 in additional fees under normal provisions, the company will pay only Rs.10,000 as additional fees under CCFS-2026.

Relevant e-forms include MGT-7, MGT-7A, AOC-4 (including CFS, NBFC, and XBRL variants), ADT-1, FC-3, FC-4, and certain legacy forms under the Companies Act, 1956 such as Form 20B, 21A, 23AC, 23ACA, 66, and 23B.

2. Application for Dormant Status

Alternatively, inactive companies may apply for dormant status under Section 455 by filing e-form MSC-1. Under the Scheme, companies need to pay only 50% of the normal filing fee.

Dormant status allows a company to remain on the register with minimal compliance requirements while it temporarily suspends operations.

3. Application for Striking Off

Finally, companies that no longer wish to continue operations may apply for strike off by filing e-form STK-2 during the Scheme period. They must pay only 25% of the applicable filing fee. As a result, the cost of voluntary closure drops significantly.

Applicability and Exclusions

However, the Scheme does not apply to:

• Companies against which the Registrar has already initiated final notice for striking off under Section 248
• Companies that have already applied for striking off
• Companies that applied for dormant status before the Scheme
• Companies dissolved pursuant to amalgamation
• Vanishing companies

Penalty Immunity Under CCFS-2026

For filings under Sections 92 and 137, companies may claim immunity from penalty proceedings if they complete filings before the authorities issue a notice or within 30 days of such notice. However, companies must still pay penalties already imposed through adjudication orders.

Conclusion

Overall, CCFS-2026 creates a limited compliance window that balances enforcement with facilitation. It gives companies a clear opportunity to correct past defaults, reduce financial exposure, shift to dormant status, or exit formally at a lower cost.

For companies with pending filings, this Scheme is not merely a concession. Instead, it offers a practical chance to restore compliance credibility before stricter enforcement resumes after 15 July 2026.                

Quick FAQs on CCFS-2026

1. Does this Scheme apply to LLPs?
   No. CCFS-2026 applies only to companies governed under the Companies Act, 2013.This Scheme does not cover LLPs.
2. When can companies apply under the Scheme?

The Scheme is applicable from 15 April 2026 to 15 July 2026. Companies must complete their applications and filings within this period.

3. Can a company struck off in 2018 due to director disqualification apply under this Scheme?
   No. If the company has already been struck off and dissolved, it cannot directly avail this Scheme. Restoration through the National Company Law Tribunal (NCLT) would be required first. Only active companies on the register can benefit from CCFS-2026.
4. Can a company file Form INC-20A (Commencement of Business) under this Scheme?
   No. The CCFS-2026 Scheme does not include INC-20A. The Scheme mainly covers Annual Return and Financial Statement related filings and certain specified forms.
5. Is immunity automatic under the Scheme?
   No. Immunity applies only if the company completes filings before issuance of notice or within 30 days of such notice. If the authorities have already adjudicated penalties and passed orders, the company must still pay those penalties.
6. Can a company choose both filing pending returns and applying for strike off?
   Yes. A company may first complete pending filings under the Scheme and then apply for strike off during the Scheme period, subject to eligibility conditions.
7. Will the Scheme completely waive additional fees?
   No. The Scheme waives only 90% of the additional fees. Companies must still pay the remaining 10% along with the normal filing fees.

Companies that intend to complete their statutory filings or explore dormancy or strike-off options under CCFS-2026 may contact us for professional support.