MCA Introduces Companies Compliance Facilitation Scheme, 2026 (CCFS-2026)
The Ministry of Corporate Affairs (MCA) has launched the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) as detailed in General Circular No. 01/2026. This scheme presents a crucial opportunity for companies that have fallen behind on their compliance obligations, offering a chance to regularize their status with minimal financial penalties.
1. Scheme Validity
The CCFS-2026 will be effective from 15th April 2026 to 15th July 2026, providing a limited-time window for defaulting companies to address their compliance issues.
2. Key Relief Measures and Fee Structure
The scheme offers three main options for relief based on a company’s current status and future intentions:
- Regularization of Annual Filings: Companies can submit pending Annual Returns and Financial Statements (like MGT-7, AOC-4) by paying the normal filing fee plus only 10% of the additional fee.
- Application for Dormant Status: Inactive companies can apply for “Dormant Status” (using Form MSC-1) at a 50% reduction in the standard filing fee, ensuring minimal compliance.
- Company Closure (Strike Off): Defunct companies wishing to exit the registry can file for strike off (Form STK-2) at just 25% of the prescribed filing fee.
3. Immunity from Prosecution and Penalties
The CCFS-2026 provides immunity from prosecution and penalties related to late filings, with specific conditions:
- For Annual Returns and Financial Statements:
- Immunity applies if documents are submitted before an adjudication notice is issued.
- If a notice exists, submissions must occur within 30 days to retain immunity.
- For Other Forms:
- Immunity from future penalties is granted if forms (like ADT-1, FC-3, etc.) are filed before any prosecution or show-cause notice.
4. Eligible Forms
The scheme encompasses various e-forms under the Companies Act, 2013 and Companies Act, 1956. Eligible forms include:
- Annual Compliance: MGT-7, MGT-7A, AOC-4 (all variants).
- Auditor Appointment: Form ADT-1.
- Foreign Companies: Forms FC-3 and FC-4.
- Pre-2013 Act Forms: 20B, 23AC, 23ACA, Form 66, etc.
5. Exclusions
Certain companies are ineligible for the scheme:
- Those already facing a final strike-off notice.
- Companies that have filed for strike-off or dormant status before the scheme.
- Amalgamated companies (already dissolved).
- “Vanishing” companies.
6. Conclusion
Stakeholders are encouraged to take advantage of this opportunity to rectify compliance issues. After 15th July 2026, the Registrar of Companies will take strict action against non-compliant entities.
For further details, visit the official MCA link: Companies Compliance Facilitation Scheme, 2026.
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