CCFS SCHEME: 90% Penalty waiver

The Companies Compliance Facilitation Scheme, 2026 is a temporary initiative that gives companies a limited window to regularize delayed filings (like annual returns and financial statements) by paying much lower additional fees than normally charged. It also offers easier options for inactive companies to either stay dormant or strike off their registration.

Scheme Period: 15 April – 15 July 2026

Fee Structure at a Glance

• Companies against which a final notice for striking off under Section 248 (or Section 560 of the Companies Act, 1956) has already been initiated by the Registrar.

• Companies that have already filed an application for striking off their name.

• Companies that had already applied for dormant status under Section 455 before this scheme commenced.

• Companies dissolved pursuant to a scheme of amalgamation.

• Vanishing companies.

What is CCFS Scheme 2026?
A one-time relief window for companies with pending annual filings — pay just 10% of additional fees and get compliant. The Ministry of Corporate Affairs (MCA) has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), to provide a one-time opportunity for companies—especially MSMEs, start-ups, OPCs, and producer companies—to clear their pending annual filing backlogs at significantly reduced costs or to exit the register through dormancy or strike-off at concessional fees.

Background & Why This Scheme Matters
The Companies Act, 2013, mandates all registered companies to file their Annual Return (MGT-7/MGT-7A) and Financial Statements (AOC-4) with the Registrar of Companies each year. Since 1st July 2018, a penalty of ₹100 per day accrues on delayed filings—with no upper cap—creating an exponentially growing liability for non-compliant companies. With more than 20 lakh active companies on the register, the MCA has acknowledged that many entities—particularly new-age entrepreneurs, small businesses, MSMEs, and one-person companies—have accumulated significant arrears due to genuine operational challenges. In response to widespread stakeholder representations, the government has launched CCFS-2026 as a targeted amnesty-style window to clean up the corporate registry and offer financial relief

Which Forms Are Covered?
The scheme covers all "relevant e-forms" for annual compliance under both the Companies Act, 2013 and the legacy Companies Act, 1956, including: Under Companies Act, 2013: 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. Under Companies Act, 1956: Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66, Form 23B.

Immunity & Protection from Penalties
One of the most significant features of CCFS-2026 is the protection it offers from penal proceedings under Sections 92 and 137 of the Companies Act, 2013 (relating to Annual Returns and Financial Statements respectively): If filings are made under the scheme before the adjudicating officer issues a notice, proceedings will be concluded and no penalty will be levied. If filings are made within 30 days of the issuance of such a notice, the same immunity applies. However, where the 30-day window after notice has already expired, or where an adjudication order has already been passed, penalties on officers and the company remain unaffected—only the filing fees benefit from the concessional structure. For forms like ADT-1, FC-3, FC-4, and the 1956-era forms, immunity from prospective penal action is granted provided no prosecution or adjudication proceedings have already been initiated before the filing date under the scheme.

Post-Scheme Action
The circular explicitly states that at the conclusion of CCFS-2026, Registrars of Companies shall initiate necessary action under the Act against all companies that remain in default. This is a genuine final-opportunity window.