CCFS-2026: MCA Announces One-Time Compliance Window for Defaulting Companies

The Ministry of Corporate Affairs (MCA) has introduced a significant compliance relief measure through General Circular No. 01/2026 dated 24 February 2026 under the Companies Act, 2013. The initiative, titled Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), offers a one-time opportunity for companies with pending statutory filings to regularize their compliance at substantially reduced additional fees.

The Scheme is positioned as a major compliance clean-up drive aimed at encouraging defaulting companies to become compliant while reducing litigation and adjudication burden.

Scheme Period

15 April 2026 – 15 July 2026
(A one-time three-month window)

Key Relief Measures

1. Regularization of Pending Annual Filings

Companies with overdue filings may submit pending Annual Returns and Financial Statements by:

• Paying normal filing fees, and
• Paying only 10% of the applicable additional fees

This is a substantial relaxation from the existing provision of ₹100 per day of delay without any upper cap.

Forms Covered Include:

• MGT-7, MGT-7A
• AOC-4
• AOC-4 CFS
• AOC-4 NBFC (Ind AS)
• AOC-4 CFS NBFC (Ind AS)
• AOC-4 (XBRL)
• ADT-1
• FC-3, FC-4
• Certain legacy forms

This relief primarily addresses non-filing defaults under Sections 92 and 137.

2. Dormant Status (Section 455)

Inactive companies may apply for dormant status through Form MSC-1 by paying only 50% of normal filing fees, enabling companies to preserve corporate status at reduced compliance cost.

3.  Strike-Off Option

Companies intending to close operations may apply for a strike-off in Form STK-2 by paying 25% of the prescribed filing fees, offering a concessional exit route.

Immunity & Penalty Position

The scheme provides conditional immunity:

• No penalty under Sections 92 & 137 if filings are completed:

• Before issuance of adjudication notice, or
• Within 30 days of such notice.

• Immunity from prospective penal action for certain other forms where:

• No prosecution or show cause notice was initiated prior to filing.

• However:

• Penalties already imposed will remain payable.

Not Applicable To

• The Scheme does not apply to:

• Companies already issued final strike-off notice
• Companies that have already applied for strike-off
• Companies that applied for dormant status before the Scheme
• Amalgamated, dissolved, or vanishing companies

Conclusion

The Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) represents a significant regulatory reform aimed at improving corporate compliance culture while offering financial relief. By sharply reducing additional fees and providing concessional options for dormancy and strike-off, the MCA has created a pragmatic pathway for defaulting companies to regularize their position.

Companies are advised to conduct an immediate compliance gap assessment and utilize this one-time window proactively.

Source:

The official notification can be accessed at the below link:

https://www.mca.gov.in/bin/dms/getdocumentmds=ZojVoJLpnPM35BP6QFpABA%253D%253D&type=open