#TaxmannAnalysis | Companies Compliance Facilitation Scheme 2026 – The Great Corporate Detox Scheme
1. Introduction
The MCA, through General Circular No. 01/2026 dated February 24, 2026, has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). The scheme offers companies a one-time window to complete long-pending statutory filings at reduced additional fees.
Beyond the fee relief, the intent is to bring records up to date and improve overall compliance standards. It also enables inactive or defunct companies to move towards dormancy or strikeoff at a lower cost, helping clean up and streamline the corporate registry.
2. Background – Why CCFS Matters?
The Companies Act, 2013, requires all companies to file their annual returns and financial statements. Fees for filing such statements, documents, returns, etc., are governed by section 403 of the Companies Act, 2013, read with the Companies (Registration Offices and Fees) Rules, 2014. With effect from July 1, 2018, delays in filing annual returns and financial statements attract an additional fee of Rs 100 per day, without any upper limit, often resulting in substantial financial liability for companies with long-pending defaults.
The Ministry has undertaken several initiatives to promote ease of doing business for corporates. However, the number of inactive companies has crossed the 20-lakh mark, and the Ministry has received representations from various stakeholders, including such companies, requesting a waiver of additional fees through a scheme.
To provide a one-time opportunity for companies to file their documents related to annual return and financial statements in the MCA-21 registry or to file for dormancy/closure, the Central Government, in exercise of powers under section 460 read with section 403 of the Companies Act, 2013, has decided to condone the delay in filing documents with the Registrar through a Scheme, namely the “Companies Compliance Facilitation Scheme, 2026”.
3. Options Available to Companies Under CCFS
Under the Scheme, companies/inactive companies have the option to:
• Get their pending annual filings completed by paying only 10% of the total additional fees payable on account of delays or
• Get their companies declared as ‘dormant company’ under section 455 of the Act by filing e-form MSC-1 and paying half of the normal fee payable under the rules.
• Get their companies struck off by filing an application in e-form STK-2 during the currency of the scheme by paying 25% of the filing fees.
4. What Makes CCFS 2026 Different from Past Schemes?
All earlier MCA amnesty initiatives were structured under the title “Company Law Settlement Scheme” (CLSS), which operates as a one-time settlement window that permits defaulting companies to regularise their pending filings by paying 25% of the applicable additional fees. The emphasis was on ‘settlement’, a curative mechanism designed to resolve past noncompliances.
However, the present scheme has been consciously titled the “Companies Compliance Facilitation Scheme” (CCFS). The shift in nomenclature is not merely cosmetic. It reflects a clear policy transition. The Government has moved from a settlement-based approach to a compliance-driven facilitation framework. The focus is no longer just on condoning past defaults, but on ensuring timely compliance and maintaining an accurate corporate registry.
The CCFS 2026 is also being projected as a one-time opportunity. Companies that do not regularise their defaults during this period should not assume that another similar window will follow. After the scheme closes, the normal penal and adjudication provisions under the Companies Act will apply in full force.
In furtherance of this objective, the financial barriers to voluntary exit have been significantly reduced. The strike-off filing fee has been reduced from Rs 10,000 to Rs 2,500, making closure a viable and economical option for defunct entities.
In essence, the evolution from ‘Settlement’ to ‘Compliance Facilitation’ signals a policy shift towards proactive governance, registry clean-up, stricter enforcement post-window and longterm regulatory discipline.
4.1 Comparison Table – CCFS 2026 vs. CLSS
Scheme name
Nature
Eligibility
Company Law Settlement Scheme, 2014
Companies Compliance Facilitation Scheme, 2026
One-time settlement Compliance facilitation
Defaulting companies with pending filings
All companies except the specified excluded categories
Scheme Period 15 Aug 2014 – 15 Oct 2014 15 April 2026 – 15 July 2026
Forms Covered
Additional Fees Relief
Dormant status option
Strike-off option
Exceptions (Who cannot apply for the scheme)
Limited set of annual filing and related forms
Pay only 25% of the actual additional fee payable
MSC-1 filing at 25% of the fee
FTE form at 25% fee
Companies facing strikeoff action, applied for strike-off/dormancy, and vanishing companies.
A wider list of forms is covered
Pay only 10% of the additional fee
MSC-1 filing at 50% of the fee
STK-2 form at 25% fee
Companies facing strike-off action, companies that applied for strike-off/dormancy, companies that have vanished, and companies dissolved via amalgamation.
4.2
Comparison
Table – CCFS 2026 vs. CODS 2018
Feature CODS-2018
Scheme name
Eligibility
Scheme Period
Exceptions (Who cannot apply for the scheme)
Additional Fees payable
Dormant company option
Strike-off Option
Post-Scheme Consequence
Forms Covered
CCFS 2026
Condonation of Delay Scheme, 2018 Companies Compliance Facilitation Scheme, 2026
Defaulting companies that failed to file financial statements/annual returns for a continuous period of 3 years
All companies except for the specified exclusions.
01 January 2018 – 31 March 2018 15 April 2026 – 15 July 2026
Companies that have been struck off/whose names have been removed from the ROC under section 248(5) of the Companies Act.
Additional fee payable as per section 403 of the Companies Act, read with Companies (Registration Offices and Fee) Rules, 2014
Not provided
Companies facing strikeoff action, companies that applied for strike-off/dormancy, companies that have vanished, and companies dissolved via amalgamation.
Pay only 10% of the additional fee.
Allowed – MSC-1 at 50% of the normal filing fee
Not specifically provided STK-2 permitted at 25% of the filing fee
DINs are deactivated on expiry of the scheme period ROC to take action against non-compliant companies
Limited scope (only specified overdue documents are allowed)
5. Period of Operation of CCFS
The scheme shall be operational from 15.04.2026 to 15.07.2026.
6. Applicability of the Scheme
A wider list of forms is covered
All companies are permitted to file relevant e-forms that were due for filing on any given date in accordance with the provisions of the Companies Compliance Facilitation Scheme, 2026, except for the following:
• Companies against which final notice for strike-off under section 248 of the Companies Act, 2013 (previously section 560 of the Companies Act, 1956) has already been initiated.
• Companies that have themselves filed a strike-off application.
• Companies that have applied for obtaining dormant status under section 455 of the Act before the scheme.
• Companies that have been dissolved pursuant to a scheme of amalgamation
• Vanishing companies1
7. What Forms are Covered Under the Scheme?
The Scheme applies to “relevant e-forms” relating to:
(a)
(b) (a) (b) (c) (d) (e)
• Companies Act, 2013 Forms
• MGT-7 – Annual Return
• MGT-7A – Annual Return (OPC and Small Company)
• AOC-4 – Financial Statements
• AOC-4 CFS – Consolidated Financial Statements
• AOC-4 NBFC (Ind AS) – Financial Statements
• AOC-4 CFS NBFC (Ind AS) – CFS
• AOC -4 (XBRL) – Financial Statements in XBRL
• ADT-1 – Appointment of Auditor
• FC – 3 – Annual Accounts (Foreign Company)
• FC – 4 – Annual Return (Foreign Company)
• Legacy Forms under Companies Act, 1956
• Form 20B – Annual Return
• Form 21A – Annual Return (Small Company)
• Form 23AC – Balance Sheet
• Form 23ACA – Profit & Loss Account
• Form 23AC-XBRL – Balance Sheet (XBRL)
• Form 23ACA-XBRL – Profit & Loss Account (XBRL)
• Form 66 – Compliance Certificate
• Form 23B – Intimation of appointment of auditor
8. Core Benefit Under the Scheme – Reduction in Additional Fees
Every company must be required to pay the fees on the filing of each relevant e-form as per the following:
1 An explanation to Rule 3 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016
Type of Fees Amount
Normal Fees
Additional Fees
As prescribed under the Companies (Registration Offices and Fees) Rules, 2014
Only 10% of the additional fees as prescribed under the Companies (Registration Offices and Fees) Rules, 2014
9. Additional Compliance Pathways Under the Scheme
Every company that files an application for obtaining the status of a ‘dormant company’ under section 455 in e-form MSC-1 must pay a fee of one-half of the normal filing fees applicable in this regard.
Further, every company that applies for striking off by filing e-form STK-2 must be required to pay only 25% of the applicable filing fees under the Companies (Removal of Name of Companies from the Registrar of Companies) Rules, 2016.
10. Immunity from Penalty Proceedings
The most valuable aspect of the scheme is the conditional immunity framework.
(a)
• Where No Adjudication Order is Passed – If filings are made before issuance of notice by the adjudicating authority or within 30 days of issuance of notice, then proceedings under section 92 or 137 shall be concluded, and no penalty shall be levied.
(b)
• Where an Adjudication Order is Already Passed – If the period of 30 days after issuance of notice for adjudication has expired or where the adjudication order imposing penalty for defaults under section 92 or 137 has already been passed, then liability to pay penalties remains unaffected.
Further, for forms such as ADT-1, FC-3, FC-4, and legacy forms, immunity from prospective penal action is available, provided no prosecution has been initiated before filing under the Scheme.
11. What if the Company Fails to File Pending Forms Un der the Scheme?
The MCA has issued a clear warning. If the company remains non-compliant after the scheme window closes on 15 July 2026, the Registrars of Companies may exercise adjudication powers to take action against entities that have not availed themselves of the scheme, which could result in significant financial penalties.
12. Conclusion
The Companies Compliance Facilitation Scheme, 2026, shows a clear change in approach. Instead of giving repeated settlement windows, the Ministry is now pushing companies to get their filings up to date in a structured way. With additional fees capped at 10 per cent and lower fees for dormancy and strike-off, it provides genuine relief to companies seeking to clear old defaults.
At the same time, the window is open for only three months, and the message is clear: strict action will follow once it closes. The idea is to update the registry and improve compliance in the future.
Companies should treat this as a serious opportunity. It is a chance to correct past gaps, reduce future risk and decide whether to continue the company or close it properly.
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