Official Reference: General Circular No. 01/2026, F.No. Policy-02/2/2020-CL-V
Issued by: Ministry of Corporate Affairs, Government of India
Circular Date: 24 February 2026
Legal Authority: Section 460 read with Section 403 of the Companies Act, 2013
📌 What is CCFS-2026?
The Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) vide General Circular dated 24 February 2026. This is a one-time relief scheme aimed at helping companies regularise their pending statutory filings or opt for dormancy/closure at significantly reduced cost.
Over the years, many companies—especially MSMEs and private companies—have accumulated heavy additional fees due to delays in filing Annual Returns and Financial Statements. Since additional fees under Section 403 of the Companies Act, 2013 run at ₹100 per day without any maximum cap, the financial burden has become substantial for defaulting companies. CCFS-2026 is designed to give such companies a practical exit or clean-up route.
📅 Scheme Period
The scheme will be open from 15 April 2026 to 15 July 2026.
This is a strictly time-bound window of exactly 3 months. After the scheme ends on 15 July 2026, the Registrar of Companies (ROC) will initiate action against companies that continue to remain non-compliant. Companies should act immediately within this window to avoid heavy penalties and regulatory action.
✅ What Options Does the Scheme Offer?
Under CCFS-2026, companies can choose any one of the following routes:
1️⃣ Clear Pending Annual Filings
Companies can file their pending Annual Returns and Financial Statements by paying:
Normal filing fees (as prescribed under rules), plus
Only 10% of the additional fees otherwise payable for delay
Example: If a company owes ₹50,000 in additional fees for 500 days of delay (500 days × ₹100/day), under CCFS-2026 it needs to pay only ₹5,000 in additional fees instead of the full ₹50,000.
This is a major relief compared to the current law, where additional fees can be extremely high and uncapped.
2️⃣ Apply for Dormant Status (Section 455)
Inactive companies that want to remain on the register with minimal compliance burden can apply for Dormant Status by:
Filing e-form MSC-1 with the Registrar of Companies
Paying only 50% of the normal filing fee for dormancy
Who should use this option?
Companies that are not currently operating but may be revived in the future
Companies that are inactive but want to keep their corporate entity alive
Startups that plan to restart operations later
Benefit: Dormant companies have minimal annual compliance requirements and lower regulatory burden.
3️⃣ Apply for Strike Off (Closure)
Companies that are no longer required can exit cleanly by:
Filing e-form STK-2 (Strike Off Application)
Paying only 25% of the normal filing fee for strike-off
Who should use this option?
Companies that are completely defunct or no longer needed
Non-operational private companies with no business purpose
Family companies or entities wound down operations
Benefit: Low-cost and clean exit option. Once struck off, the company ceases to exist as a legal entity and has no further compliance obligations.
📝 Forms Covered Under the Scheme
The scheme covers a comprehensive list of compliance forms, including:
Forms Under Companies Act, 2013:
MGT-7 – Annual Return (Large Companies)
MGT-7A – Annual Return (Small Companies & OPC)
AOC-4 – Financial Statements
AOC-4 CFS – Financial Statements (Consolidated)
AOC-4 NBFC (Ind AS) – Financial Statements (NBFC in Ind AS)
AOC-4 CFS NBFC (Ind AS) – Financial Statements (NBFC Consolidated, Ind AS)
AOC-4 (XBRL) – Financial Statements (XBRL Format)
ADT-1 – Appointment of Auditor
FC-3 – Return of Overseas Investment
FC-4 – Return on Foreign Remittance
Forms Under Companies Act, 1956 (for legacy compliance):
Form 20B – Annual Return (Old regime)
Form 21A – Board's Report
Form 23AC – Balance Sheet
Form 23ACA – Profit & Loss Statement
Form 23AC-XBRL – Balance Sheet (XBRL)
Form 23ACA-XBRL – P&L Statement (XBRL)
Form 66 – Return of Allotment
Form 23B – Consolidated Financial Statements
Important Note: The scheme covers forms notified under both the Companies Act, 2013 and Companies Act, 1956, ensuring that legacy compliance matters and pending filings from older regimes are also covered.
This means most pending annual compliance defaults can be regularised under this scheme.
❌ Who Cannot Use This Scheme?
The scheme is NOT available to:
Companies with final strike-off notice: Companies against which a final notice for striking off under Section 248 of the Companies Act, 2013 (previously Section 560 of Companies Act, 1956) has already been issued by ROC
Companies already applied for strike-off: Companies that have already filed an application for striking off their name from the register of companies
Companies already dormant: Companies that have already filed for obtaining Dormant Status under Section 455 before the inception of this scheme
Amalgamated/dissolved companies: Companies which have been dissolved pursuant to a scheme of amalgamation under the Act
Vanishing companies: Companies classified as vanishing companies
🛡️ Relief from Penalties (Immunity Provisions)
The scheme provides important immunity from penalties under specific conditions:
For Sections 92 & 137 Defaults (Annual Returns & Financial Statements):
Immunity is GRANTED if:
Filings are done before notice is issued by the adjudicating officer, OR
Filings are done within 30 days of the notice being issued by the adjudicating officer
Result: No penalty will be levied on the company or its officers for the defaults.
Immunity is NOT GRANTED if:
30 days have expired after the adjudication notice, AND
No filing is made within that 30-day window
In such cases: The penalty already levied remains payable (company cannot escape existing penalties), BUT the filing fee relief of 10% still applies.
For Other Forms (ADT-1, FC-3, FC-4, Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66, Form 23B):
Immunity from future penal action is available if:
The forms are filed under the Scheme, AND
No prosecution has been filed before the filing under the scheme, AND
No show cause notice for adjudication has been issued before the filing under the scheme
Result: Companies filing these forms under CCFS-2026 get protection from prospective (future) penalties and penal actions.
⚠️ Important Fee Structure
Type of Action | Normal Fee | Fee Under CCFS-2026 |
|---|---|---|
File Pending Annual Returns/Financial Statements | As prescribed under rules | Normal Fee + 10% of Additional Fees |
Apply for Dormant Status (MSC-1) | Normal fee for dormancy | 50% of Normal Dormancy Fee |
Apply for Strike-Off (STK-2) | Filing fee as per rules | 25% of Normal Strike-Off Fee |
Example Calculation for Option 1:
Normal filing fee: ₹1,000
Additional fees due: ₹50,000 (500 days × ₹100/day)
Total under CCFS-2026: ₹1,000 + (₹50,000 × 10%) = ₹1,000 + ₹5,000 = ₹6,000
Savings: ₹50,000 - ₹5,000 = ₹45,000 saved!
📊 What Happens After 15 July 2026?
Once the scheme period ends, the Registrar of Companies will take strict action against companies that:
Have not cleared their pending filings, AND
Have not opted for dormancy or strike-off under the scheme
Possible Actions by ROC:
Initiation of strike-off proceedings under Section 248
Imposition of penalties under Section 92 & 137
Show cause notices for adjudication
Prosecution proceedings (in severe cases)
Removal of company name from the register
In short, this is a final clean-up window before enforcement actions intensify.
📌 In Simple Words – Quick Guide
Situation | Action | Benefit |
|---|---|---|
Missed filings? Company is operational | Clear pending Annual Returns/FS under Option 1 | Pay only 10% of additional fees, immunity from penalties |
Company is inactive, no business | Go Dormant under Option 2 (MSC-1) | Remain registered at half fee, minimal compliance |
Company has no use anymore | Close via Strike-Off under Option 3 (STK-2) | Exit cleanly at 25% of fee, no further obligations |
Do nothing? | Don't avail the scheme | Be ready for ROC action (penalties, strike-off, prosecution) |
🏁 Eligibility Quick Checklist
Your company IS eligible if:
✅ You have pending Annual Returns or Financial Statements
✅ Your company was incorporated under Companies Act, 2013 or 1956
✅ You want to either file, go dormant, or strike-off
✅ You are within the scheme period (15 April – 15 July 2026)
Your company is NOT eligible if:
❌ ROC has already issued final strike-off notice
❌ You have already applied for strike-off or dormancy before April 15, 2026
❌ Your company is dissolved through amalgamation
❌ Your company is classified as a vanishing company
📋 How to File Under CCFS-2026
Step-by-Step Process:
Step 1: Check Your Company Status
Log in to the MCA21 Portal (https://www.mca.gov.in)
Check if your company has pending filings
Verify you are not in the exclusion list
Step 2: Choose Your Option
Option 1: File pending forms (MGT-7, AOC-4, etc.)
Option 2: File e-form MSC-1 for Dormant Status
Option 3: File e-form STK-2 for Strike-Off
Step 3: Pay Fees Under CCFS-2026
At the time of filing, fees will be calculated at the reduced rate
System will automatically apply 10%, 50%, or 25% as applicable
Step 4: File Online
Submit the e-form on MCA Portal
Upload supporting documents as required
Pay the reduced fees online
Step 5: Track Status
Monitor application status on MCA21 Portal
Once filed, immunity benefits are effective
⚡ Key Benefits at a Glance
✅ 90% savings on additional late fees (pay only 10% of accumulated penalties)
✅ One-time relief opportunity – After July 15, 2026, no more chances
✅ Immunity from penalties – If filed within the grace period
✅ Multiple options – File, go dormant, or close cleanly
✅ All forms covered – Both Companies Act 2013 and 1956 filings included
✅ Backward coverage – Covers legacy filings from old regime
✅ Simple process – File online through MCA21 Portal
✅ Cost-effective – Especially for MSMEs with heavy fee burden
🔍 Important Considerations & Warnings
Before You File:
Verify Your Eligibility
Check if your company falls in the exclusion list
Confirm pending filings with your Registrar of Companies
Understand the Choice
Once you choose an option, ensure it aligns with your business plans
Filing and dormancy are reversible; strike-off is permanent
Past Penalties
Immunity applies only to future penal action
If penalties are already imposed, filing doesn't waive them (but fee relief still applies)
State-Specific Rules
Different Registrars of Companies may have additional local guidelines
Contact your regional ROC for state-specific procedures
📞 Where to Get Help
Official MCA Portal: https://www.mca.gov.in
Registrar of Companies (ROC): Check your state's ROC website
Company Secretary/Compliance Professional: For personalized guidance
Chartered Accountant: For financial and tax implications
Legal Advisor: For strike-off and dormancy legalities
⚠️ IMPORTANT DISCLAIMER
This article is for informational purposes only. While all information is sourced from the official MCA General Circular No. 01/2026, each company's compliance situation is unique.
Before taking any action under CCFS-2026:
Consult a qualified Chartered Accountant for financial implications and tax treatment
Consult a Company Secretary for procedural and compliance matters
Consult a Legal Advisor if considering strike-off or dormancy, as these have permanent legal consequences
Verify with your Registrar of Companies for state-specific procedures and requirements
Note: The Ministry of Corporate Affairs or the authors of this article are not responsible for decisions made based on this information. Always verify with official sources before filing.
🎯 Final Verdict: This is Your Last Chance
CCFS-2026 is a golden opportunity for defaulting, inactive, and non-operational companies to either:
Regularise (if still operational) → Option 1
Pause (if dormant/inactive) → Option 2
Close (if defunct) → Option 3
At a much lower cost and risk.
Timeline is Critical:
📅 Start: 15 April 2026
📅 End: 15 July 2026 (Only 3 months!)
📅 After: ROC enforcement intensifies
Companies should review their compliance status immediately and take timely action within the scheme window to avoid:
❌ Heavy accumulated penalties
❌ Regulatory action by ROC
❌ Strike-off proceedings initiated by authorities
❌ Potential criminal prosecution (in extreme cases)
📢 Who Should Read This?
✅ Company Directors and Shareholders
✅ Company Secretaries and Compliance Officers
✅ Chartered Accountants and Financial Advisors
✅ MSME Owners and Entrepreneurs
✅ Startup Founders
✅ Private Company Promoters
✅ Inactive/Dormant Company Owners
✅ Legal Advisors and Company Law Practitioners
📚 Referenced Documents
Official Source: General Circular No. 01/2026, dated 24 February 2026
Ministry: Ministry of Corporate Affairs, Government of India
Legal Framework: Companies Act, 2013; Companies (Registration Offices and Fees) Rules, 2014
Forms Reference: Companies (Removal of Name of Companies from the Register of Companies) Rules, 2016
✅ Conclusion
The Companies Compliance Facilitation Scheme, 2026 represents a landmark opportunity from the Government of India to help companies resolve years of compliance backlog at a fraction of the cost. With penalties of ₹100 per day adding up to thousands of rupees monthly, this scheme is a lifeline for MSMEs and struggling companies.
The window is short, the benefits are substantial, and the deadline is fixed.
Companies must act now. After 15 July 2026, this opportunity will be gone forever, and the Registrar of Companies will resume strict enforcement actions.
Don't miss this chance. Act today, regularise your compliance, and secure your company's future.