The Ministry of Corporate Affairs (MCA) has come-up with the Companies Compliance Facilitation Scheme, 2026 to simplify doing business in the country and for further easing. The scheme is a "clean slate" opportunity for businesses in financial distress that have fallen behind on their statutory filings.
This will drill down much more deeper. So, the Companies Act 2013 Today, whether you are a startup or an MSME Or also be an established private limited company. All of them need to stay compliant with their Companies Act, 2013. However, many businesses have built up large late fees because of different economic problems. This financial burden is set to be eased with the introduction of the CCFS 2026, enabling companies to regularise their status for a fraction of the cost.
In this blog, we present a comprehensive overview of the scheme, its benefits, and why you need to act before the July deadline.
The year 2020 has come to an end, and this is the time when every company needs to file their Annual Returns and Financial Statement in accordance with Section 403 of Companies Act, 2013 within prescribed timelines. As a penalty for non-filing, the MCA had introduced a levy of Rs. 100 per day, from July 1, 2018 onwards till the date of filing for each respective form. These penalties often amount to lakhs of rupees, and in some situations may be more than the actual capital of the companies, so for companies with filings pending for multiple years.
The government wants to make sure the corporate registry consists of accurate and up-to-date data since the number of active companies in India has crossed 20-lakh. Thereafter, to facilitate these "new-age entrepreneurs" and MSMEs the Ministry of Corporate Affairs (MCA) has issued General Circular No. 01/2026 for a one-time waiver in respect of a complete substantial part of such additional fees.
Extended Due Dates for Filing Annual Returns & Financial Statements
New rule: Companies are allowed to file belatedly MGT-7/7A (Annual Returns) and AOC-4 (Financial Statements) by paying normal fees along with 10% of aggregate additional fees.
For instance, if you have a total late fee of Rs. 50,000 accumulated, under this scheme, you will be able to regularize the same by paying only the amount of Rs. 5,000 as additional fee.
If your venture has no business activity as mentioned, but go on desirous of owning the shell for further pursuits, you may seek 'Dormant Company' status under Section 455. With CCFS-2026, you only need to pay 50% of the filing fee for e-form MSC-1.
The scheme gives a huge discount to companies that are defunct and want to shut down for good. You can opt for "Strike Off" by filling e-form STK-2 and also pay 25% of the regular filing fees.
This is a small window for this scheme. Failure to do so will result in a return back to the 100% penalty regime and possible prosecution
Note: We highly recommend starting the documentation process in March or early April to avoid the last-minute rush and technical glitches on the MCA-21 portal.
The scheme would be applicable for a variety of "relevant e-forms" under the Companies Act, 2013 and the Companies Act, 1956. This includes:
The scheme is inclusive, however, some entities are excluded from this to avoid undermining the integrity of the law:
One of the biggest advantages of CCFS-2026 is the immunity from prosecution. Usually, a delay in filing doesn't just attract fees; it also exposes the company and its Directors to legal proceedings and penalties under Section 92 and 137 of the Act.
Under this scheme:
However, please note: If an adjudication order has already been passed or a penalty has already been imposed before the filing, the scheme does not waive those pre-existing liabilities.
The MCA notes that this is a “facilitation” scheme. After the window on July 15, 2026 is shut, the Ministry will be slated to initiate a widespread crackdown on non-compliant entities.
The MCA filings are pretty straightforward, but after dealing with years of backlog it becomes a little tricky. Corporate Secretarial Services and Regulatory Compliance at FEMA Consultant
Our team can help you:
Don’t wait until July! That means portal traffic is increasing, which can result in delays. Call us today to regularize your company and start the new financial year on a clean slate.
The Companies Compliance Facilitation Scheme, 2026 is not merely a discount program; it offers businesses an opportunity to prevent legal blocks and retain their "Active" status with the government, banks, and investors.
For professional assistance with your MCA filings under CCFS-2026, visit FEMA Consultant or reach out to our compliance experts.