Corporate Compliance Relief Scheme's Validity Extended Up To 15 September

(MENAFN- Live Mint) The government has extended for a second time the validity of a one-time scheme that allows companies more time to complete pending compliances, such as filing of financial statements and annual returns, by paying much lower penalties.

The validity of the Companies Compliance Facilitation Scheme, 2026, has been extended by 15 days until 15 September, as per a ministry of corporate affairs (MCA) circular dated 31 August. It was earlier extended up to 31 August from the initial deadline of 15 July. The scheme came into effect from 15 April.

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The latest extension follows“representations received from various stakeholders,” the ministry said. Allowing the first extension in July, the ministry had said it was done“in view of the capacity enhancement/restoration activities being done at data centre consequent to a fire incident on June 5.”

Lower penalties

Quick answers to key questions

.5 QUESTIONS1What is the Companies Compliance Facilitation Scheme, 2026?⌵

The Companies Compliance Facilitation Scheme, 2026 is a government initiative that allows companies to complete pending compliances, like filing financial statements and annual returns, by paying significantly lower penalties.

2Why was the validity of the Companies Compliance Facilitation Scheme extended?⌵

The validity was extended due to stakeholder representations and after acknowledging the disruptions caused by a fire incident that affected data center operations, reducing compliance capabilities.

3How much reduction in penalties is offered by the Companies Compliance Facilitation Scheme?⌵

Companies can file pending annual returns and financial statements by paying just 10% of the usual penalties under the scheme.

4Should companies apply for the dormant status under the Companies Compliance Facilitation Scheme?⌵

Yes, companies can opt for dormant status under the scheme, which typically has lower compliance requirements, making it beneficial for inactive or defunct entities.

5How can companies have their names struck off by using the Companies Compliance Facilitation Scheme?⌵

Companies can get their names struck off during the scheme period by paying only a quarter of the applicable filing fee, simplifying the closure process.

Companies availing the scheme can file pending annual returns and financial statements by paying just 10% of the usual penalties.

“The scheme is aimed at improving compliance levels and ensuring that the corporate registry reflects accurate and up-to-date information,” said the ministry's first circular on the scheme, issued in February.“Additionally, it is aimed at facilitating inactive or defunct entities to opt for dormancy/closure by paying lesser fees.”

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In the normal source of events, companies have been required to pay an additional fee of ₹100 a day since July 2018 for delayed filing of annual returns and financial statements on the MCA21 portal, meant for various corporate filings.

Companies are also permitted under this scheme to obtain 'dormant' status under Section 455 of the Companies Act by paying only half the usual fee. Dormant status typically cuts compliance needs.

Companies can also get their names struck off during the scheme period by paying only a quarter of the applicable filing fee.

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