Tag Archive for: CCFS

Kunal Gupta, Executive | corplaw@vinodkothari.com

Introduction

In order to encourage defaulting companies to either complete their long pending statutory filings or opt for an exit or dormant status, the Ministry of Corporate Affairs (‘MCA’), vide Circular dated  January 24, 2026, has come up with ‘Companies Compliance Facilitation Scheme, 2026’ (‘CCFS, 2026’). This scheme offers one time immunity to eligible companies (detailed below) in two key ways: (a) updating statutory filings with reduced additional fees; and (b) enabling inactive or defunct companies to opt for dormancy or closure at lower fees. These benefits are available from April 15, 2026, to July 15, 2026. 

This write-up discusses the applicability of the CCFS, 2026 and related concerns.

Companies eligible to avail CCFS, 2026 

All companies are eligible to avail benefit of CCFS, 2026, except the following-

1. Companies against which action of final notice u/s 248 (1) of CA, 2013 has already been initiated by the Registrar;
2. Companies which have already filed application (STK-2) u/s 248 (2) of CA, 2013 for striking off their names;
3. Companies which have already made application u/s 455 of CA, 2013 for obtaining the status of ‘dormant company’;
4. Companies which have been dissolved pursuant to a scheme of amalgamation without winding up;
5. Vanishing Companies; and
6. Companies which have not received a notice of adjudication u/s 454 (3) of CA, 2013 and 30 days have elapsed.

Validity of the ‘Scheme’

As mentioned above, the window to avail the benefit under the CCFS , 2026 is for a limited period of 3 months, i.e  from April 15, 2026 to July 15, 2026. That is, the companies, intending to avail the benefit under CCFS, 2026 shall have to file the requisite forms within the aforesaid period, failing which, normal fees along with additional fees without any concession will be applicable. 

Offers under ‘CCFS, 2026’ 

Section 403 of the Companies Act, 2013 read with Companies (Registration Offices and Fees) Rules, 2014 provides that in case of delayed filing of statutory forms, an additional fee of Rs. 100 per day is payable for each day during which the default continues, subject to such limits as may be prescribed. Consequently, non-compliant companies may be required to pay substantial additional fees for the delayed filing of annual forms, over and above the normal filing fees.

The CCFS, 2026 provides a one- time window to all the eligible companies (discussed above) that have failed to file their statutory documents (refer list below), particularly, annual returns and financial statements, to –

1. Get their annual filing completed by paying only 10% of the total additional fees prescribed under the law on account of delay alongwith the normal filing fees; or
2. If there are no significant business activities in the company in atleast last 2 financial years,
   1. To get the status of ‘dormant company’ u/s 455 of the CA, 2013 by filing form MSC-1 by paying half of the normal fees payable under the rules; OR
   2. File form STK-2 to get the name of the company struck off during the currency of the Scheme by paying 25% of the filing fees.

Relevant E Forms for which immunity can be availed under ‘CCFS, 2026’

Under CCFS 2026, immunity and fee concessions are available in respect of the following  e‑forms-

E- Form	Particulars
Under Companies Act, 2013 read with relevant rules made thereunder:
MGT-7 / MGT-7A	For filing annual return
AOC-4 / AOC-4 CFS / AOC-4 NBFC (Ind AS) / AOC-4 CFS NBFC (Ind AS) / AOC-4 (XBRL)	For filing financial statements
ADT-1	For intimation about the appointment of auditor
FC-3 / FC-4	For filing annual accounts / annual return by foreign companies in India
Under Companies Act, 1956 read with relevant rules made thereunder:
20B	For filing annual return by a company having share capital
21A	For filing particulars of annual return for the company not having share capital
23AC / 23ACA / 23AC – XBRL / 23ACA – XBRL	For filing Balance Sheet and Profit & Loss account
66	For submission of Compliance Certificate with the RoC
23B	For Intimation for appointment of auditors

Some practical questions relating to CCFS, 2026

1. If a company has already received notice from an Adjudicating officer in relation to the non-filing of Form MGT-7 for FY 2020 to FY 2025, whether such company would still be eligible to avail the benefits of the CCFS, 2026?

Response: Yes, the company would still be eligible to avail the benefits of CCFS, 2026, provided 30 days have not elapsed from the date of receipt of the adjudication notice.

2. Whether a company incorporated in 2012, which has not filed any statutory forms or annual filings since incorporation, would be eligible to avail the benefits of CCFS, 2026?

Response: Yes, such a company may, under CCFS, 2026, either regularise its default by completing all pending filings at the concessional additional fees, or opt for an exit route by applying for striking off or for dormant status, subject to fulfilment of the specific conditions and procedures prescribed for those options

3. Company XYZ intends to apply for striking off its name under the CCFS, 2026, whether the company is required to update all pending annual filings up to date before filing Form STK-2? Further, whether the CCFS, 2026 provides relaxation/benefits for both updating pending annual filings as well as filing for strike-off?

Response: Yes. Rule 4 of the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 mandates filing overdue financial statements and annual returns up to the financial year-end when the company ceased business operations.  CCFS, 2026 provides some relaxation on filing fees of STK-2 but does not exempt compliance with striking-off prerequisites. 

4. If a company has already filed Form STK-2, which is currently pending for approval and has been marked for resubmission, whether the company can withdraw the existing application and file a fresh application under CCFS, 2026?

Response: No, CCFS, 2026 specifically rules out companies which have already filed Form STK-2 u/s 248(2) of CA, 2013 from taking benefit under this scheme.

5. Company XYZ, a section 8 company, has not filed its annual filings for FY 2025, can it still apply for strike-off by filing Form STK-2 under the CCFS Scheme, considering that the scheme period will commence after 31 March 2026?

Response: A section 8 company cannot opt for striking off u/s 248.

6. XYZ Pvt. Limited has received a SCN for non- filing of AOC-4 and MGT-7 for FY 2022 to FY 2025 on 1st March, 2026, can it opt for CCFS, 2026?

Response: In this case, since an SCN has already been issued on 1 March 2026 for non-filing of AOC-4 and MGT-7 for FY 2022–2025, the company would not be eligible to claim immunity or relief under CCFS, 2026.

7. Do the benefits of CCFS, 2026 can also be availed by LLP?

Response: No, as of now, benefits under CCFS 2026 can be availed by companies only.

Concluding remarks

As an initiative to improve compliance level and ensure that the corporate registry reflects correct and up-to-date data, MCA has come up with this one-time Scheme. It’s a wake-up call for non-compliant companies to regularise themselves by updating their filings at the lowest additional fees, or to opt for dormancy or strike-off with ease at concessional filing fees. Companies should seize this opportunity to achieve statutory compliance, avoid future penalties, and contribute to a transparent business ecosystem.