(INDIA) — The Ministry of Corporate Affairs launched the Companies Compliance Facilitation Scheme 2026 (CCFS-2026) through General Circular No. 01/2026 dated February 24, 2026, offering a one-time amnesty that lets eligible companies clear pending filings or opt for dormancy or closure at reduced fees.
MCA CCFS-2026 gives companies three routes to regularise their status during a limited window, with the biggest relief tied to a 10% Fee on certain delay-related additional charges that can otherwise mount quickly.
The scheme aims to reduce the backlog of statutory filings, ease the compliance burden on companies, and improve the accuracy of the corporate registry, the circular said.
A three-month filing period opens on April 15, 2026, and closes on July 15, 2026.
Companies must submit filings through the MCA-21 portal during that period to claim the benefits under the scheme.
MCA designed CCFS-2026 as an amnesty with defined choices rather than a blanket waiver, letting companies decide whether to catch up on overdue annual filings, formally become dormant, or seek strike-off and closure.
One option allows companies to clear pending filings for annual returns and financial statements, using Form AOC-4 and Form MGT-7, by paying normal filing fees plus only 10% of additional fees that would otherwise apply for delays.
The circular included an example showing how the relief works when delay fees rise: for 1,000 days delay at ₹100/day, a normal additional fee of ₹100,000 would fall to ₹10,000 under the scheme.
A second path targets inactive companies that want to remain on the register with minimal ongoing compliance by applying for dormant status under Section 455.
Under that option, companies file e-Form MSC-1 and pay 50% of normal filing fees, a route described as useful for project-based firms, intellectual property holders, or businesses that have temporarily halted operations.
A third route offers a closure mechanism for entities that want their names removed from the register by filing e-Form STK-2 and paying 25% of normal filing fees, which the circular described as approx. ₹2,500.
The strike-off option is framed as a practical route for defunct entities that do not plan to revive operations and want to tidy up their statutory position through a structured closure.
While CCFS-2026 offers reduced fees, the circular also sets out exclusions that limit who can use the scheme.
Companies cannot participate if the Registrar has issued a final strike-off notice under Section 248.
Firms that already applied for voluntary strike-off also fall outside the scheme, as do companies that applied for dormant status before the scheme start.
Entities dissolved via amalgamation cannot use the scheme, and the circular also bars companies classified as vanishing companies.
Alongside fee relief, CCFS-2026 provides a defined immunity framework tied to filing-related penalties, with timing conditions that companies must meet.
The circular provides immunity from filing-related penalties if filings are made before prosecution initiation or within 30 days of an adjudication notice.
Relief does not apply if an adjudication order has already been passed or if the 30-day window after notice has expired, and the circular notes that penalties for Sections 92 and 137 remain.
MCA limited the scheme’s financial relief to fees under Section 403, while stating that other liabilities remain unchanged.
That design makes the scheme largely a compliance and registry-cleanup measure focused on late filing costs, rather than a broader settlement of all possible corporate liabilities.
The circular also sets out what happens after the window closes, signalling a tougher posture for companies that remain non-compliant after the scheme ends.
After July 15, 2026, registrars will pursue strict action against non-compliant firms, including prosecution and strike-off, the circular said.
The end date therefore acts as both a deadline for discounted filings and a pivot point for enforcement, with companies expected to choose a path and execute it on the MCA-21 portal before the three months expire.
Stakeholder concerns over rising delay fees sit behind the amnesty push, particularly where the circular flagged delay costs of ₹100/day with no cap.
That structure can make long-delayed compliance expensive even for smaller firms, including MSMEs and private companies, and CCFS-2026 positions itself as a way to break that logjam by making the catch-up cost manageable for a limited period.
For companies considering the pending-filings route, the scheme’s central trade-off is straightforward: businesses still pay normal filing fees, but they sharply reduce the incremental pain from historical delay by limiting additional fees to the 10% Fee level.
The example in the circular illustrates how the reduction can matter most for companies with very long delays, where additional fees can otherwise dwarf the normal filing fee and make regularisation unattractive.
For businesses that are inactive but not ready to close, dormant status under Section 455 offers a different type of relief by lowering the immediate cost of filing e-Form MSC-1 to 50% of normal filing fees while keeping the corporate shell available for future use.
MCA framed that option as suitable for companies that have paused activity for strategic or operational reasons, including firms organised around individual projects or holding intellectual property.
For companies that have no intention of resuming, e-Form STK-2 provides a route to remove the name from the register at 25% of normal filing fees, positioned as approx. ₹2,500.
Each option carries a different compliance outcome, so companies face a choice between returning to full compliance through overdue filings, stepping down into a dormant posture with lighter ongoing obligations, or exiting via strike-off.
Eligibility, however, can block that choice entirely for certain entities, particularly those already deep into strike-off proceedings or with prior filings that pre-date the scheme start.
The final strike-off notice exclusion under Section 248, and the bar on companies that already applied for voluntary strike-off, means CCFS-2026 is not a tool to reopen every case already moving toward removal from the register.
Similarly, the restriction on companies that applied for dormant status before the scheme start prevents the scheme from acting as a retroactive discount for filings already made.
The exclusion for firms dissolved via amalgamation reflects that such entities no longer exist in the same form, while the scheme’s treatment of vanishing companies draws a clear line around a category MCA does not want to regularise through discounted fees.
The immunity provisions add another set of timing and status checks, especially where adjudication steps have already advanced.
Companies seeking the protection described in the circular need to ensure filings occur before prosecution initiation, or within 30 days of an adjudication notice, to qualify for immunity from filing-related penalties.
Once an adjudication order has been passed, or once the 30-day period after notice has run out, the scheme does not provide relief on that front, and the circular further notes that penalties for Sections 92 and 137 remain.
By limiting relief to fees under Section 403, MCA also makes clear that CCFS-2026 does not rewrite every financial exposure a company might face, even if it can dramatically shrink certain late-filing additional fees.
For businesses preparing to use the scheme, timing on the MCA-21 portal matters, especially as companies rush toward the end of the three-month window.
MCA’s circular urged companies to plan filings early to avoid portal issues, a practical warning that becomes more relevant as deadlines approach and traffic on the MCA-21 portal rises.
Companies also need to assess which of the three options best matches their status, since the choice affects whether they remain active and compliant, become dormant, or move toward closure.
Firms with a backlog of overdue annual returns or financial statements may find the pending-filings route the most direct, since it focuses on Form AOC-4 and Form MGT-7 and reduces additional fees to the 10% Fee level.
Inactive firms that want to retain the corporate vehicle may instead prefer dormant status through e-Form MSC-1 at 50% of normal filing fees, rather than paying to clear filings solely to keep the company on the register.
Defunct entities that want a clean exit may find e-Form STK-2 at 25% of normal filing fees the most aligned with their needs, particularly where the circular described the amount as approx. ₹2,500.
Checking eligibility before preparing filings becomes essential because the exclusions in the circular can render a company ineligible regardless of its preferred compliance route.
Companies that fall within the barred categories—such as those with a final strike-off notice under Section 248, those already in voluntary strike-off, those that applied for dormant status before the scheme start, those dissolved via amalgamation, or those classified as vanishing companies—cannot use CCFS-2026’s reduced fees.
The circular’s structure also implies a sequencing discipline for companies that can participate: decide the route, prepare the correct form, and file within the scheme window to secure the reduced-fee treatment and any available immunity conditions.
MCA’s timeline is tight and clear: the opportunity starts April 15, 2026, and ends July 15, 2026, after which registrars can move to stricter enforcement, including prosecution and strike-off, against firms that remain non-compliant.
By combining reduced fees, defined immunity boundaries, and the prospect of post-scheme action, CCFS-2026 seeks to push companies toward final decisions—catch up, go dormant, or close—before the filing window shuts.
MCA CCFS-2026 Lets Companies Clear Pending Filings with 10% Fee on MCA-21
The MCA’s CCFS-2026 scheme provides a one-time opportunity for Indian companies to regularize their statutory filings between April and July 2026. By offering a 90% discount on additional delay fees, the scheme facilitates catch-up filings, dormant status transitions, or structured closures. It serves as a registry-cleanup measure before the government initiates stricter prosecution and mandatory strike-off actions against non-compliant entities later in the year.
