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Ministry Of Corporate Affairs Notifies Companies Compliance Facilitation Scheme, 2026
(MENAFN- KNN India)
New Delhi, Feb 26 (KNN) The Ministry of Corporate Affairs (MCA) has issued a circular, introducing the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026).
The scheme provides a one-time compliance window for companies to regularise pending statutory filings with reduced additional fees and condonation of delay. It will remain operational from April 15, 2026 to July 15, 2026.
Under the scheme, companies can file pending annual returns and financial statements with the MCA-21 registry. Alternatively, they may apply for dormant status or seek closure in accordance with the provisions of the Companies Act, 2013.
Background and Rationale
The Companies Act, 2013 mandates all companies to file annual returns and financial statements within prescribed timelines. Fees for filing documents are governed by Section 403 of the Act read with the Companies (Registration Offices and Fees) Rules, 2014.
Since July 1, 2018, an additional fee of Rs 100 per day has been applicable for delays in filing annual returns and financial statements, without any upper limit, often resulting in significant financial burden for defaulting companies.
The MCA noted that the number of active companies in India has crossed 20 lakh, reflecting increased formalisation of the economy and growth among MSMEs, producer companies, One Person Companies (OPCs), and other new-age enterprises.
Representations from stakeholders highlighted difficulties faced by several companies, including MSMEs and private entities, in meeting annual compliance requirements on time, leading to mounting additional fees.
To address these concerns and promote ease of doing business, the Central Government, in exercise of powers under Section 460 read with Section 403 of the Act, has decided to condone delays through CCFS-2026.
The objective is to improve compliance levels, ensure that the corporate registry reflects accurate and updated information, and facilitate inactive or defunct entities to opt for dormancy or closure at reduced cost.
Key Benefits Under CCFS-2026
Under the scheme, companies and inactive entities have three options. First, they may complete pending annual filings by paying only 10 per cent of the total additional fees otherwise payable for delays. Second, they may apply to be declared a 'dormant company' under Section 455 of the Act by filing e-form MSC-1 and paying half of the normal fee prescribed under the rules.
This allows inactive companies to remain on the register with minimal compliance obligations. Third, companies may apply for strike-off by filing e-form STK-2 during the currency of the scheme and paying only 25 per cent of the prescribed filing fees.
Through this calibrated relief measure, the government aims to provide companies a final opportunity to regularise defaults, reduce compliance costs, and strengthen the integrity and transparency of India's corporate registry.
(KNN Bureau)
The scheme provides a one-time compliance window for companies to regularise pending statutory filings with reduced additional fees and condonation of delay. It will remain operational from April 15, 2026 to July 15, 2026.
Under the scheme, companies can file pending annual returns and financial statements with the MCA-21 registry. Alternatively, they may apply for dormant status or seek closure in accordance with the provisions of the Companies Act, 2013.
Background and Rationale
The Companies Act, 2013 mandates all companies to file annual returns and financial statements within prescribed timelines. Fees for filing documents are governed by Section 403 of the Act read with the Companies (Registration Offices and Fees) Rules, 2014.
Since July 1, 2018, an additional fee of Rs 100 per day has been applicable for delays in filing annual returns and financial statements, without any upper limit, often resulting in significant financial burden for defaulting companies.
The MCA noted that the number of active companies in India has crossed 20 lakh, reflecting increased formalisation of the economy and growth among MSMEs, producer companies, One Person Companies (OPCs), and other new-age enterprises.
Representations from stakeholders highlighted difficulties faced by several companies, including MSMEs and private entities, in meeting annual compliance requirements on time, leading to mounting additional fees.
To address these concerns and promote ease of doing business, the Central Government, in exercise of powers under Section 460 read with Section 403 of the Act, has decided to condone delays through CCFS-2026.
The objective is to improve compliance levels, ensure that the corporate registry reflects accurate and updated information, and facilitate inactive or defunct entities to opt for dormancy or closure at reduced cost.
Key Benefits Under CCFS-2026
Under the scheme, companies and inactive entities have three options. First, they may complete pending annual filings by paying only 10 per cent of the total additional fees otherwise payable for delays. Second, they may apply to be declared a 'dormant company' under Section 455 of the Act by filing e-form MSC-1 and paying half of the normal fee prescribed under the rules.
This allows inactive companies to remain on the register with minimal compliance obligations. Third, companies may apply for strike-off by filing e-form STK-2 during the currency of the scheme and paying only 25 per cent of the prescribed filing fees.
Through this calibrated relief measure, the government aims to provide companies a final opportunity to regularise defaults, reduce compliance costs, and strengthen the integrity and transparency of India's corporate registry.
(KNN Bureau)
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