On 24th February 2026, the Ministry of Corporate Affairs (MCA) has issued General circular No. 01/2026 launching the “Companies Compliance Facilitation Scheme 2026”. This is a one time window giving the defaulting companies an opportunity to either regularize their annual filing or opt for the dormancy / strike off by paying the filing fee at a concessional rate.
With effect from 1st July 2018, an additional fee of Rs. 100 per day is applicable in respect of delay in filing annual returns and financial statements without any upper limit. In the recent period of time, the Ministry has received representations from various stakeholders with a request to waive off additional fee through a scheme. It has been noted that some of these companies including MSME and private companies, have not been able to complete their annual compliances in time, leading to a situation of additional financial burden on account of additional fee payable due to delay. Now, in order to address these situations and problems, the “Companies Compliance Facilitation Scheme 2026” has been launched.
Time period of the Scheme
From 15-04-2026 to 15-07-2026
Objective of the Scheme
- Improving compliance level
- Updating and cleaning of the corporate registry
- Facilitating inactive or defunct entities to opt for dormancy / closure by paying lesser fees.
Feature of the scheme
Companies / inactive companies can choose any one of the following:
Option A – Pending annual filing fee
- Pay the normal filing fee and 10% of the additional filing fee
Option B – Declaring “Dormant company” under section 455 of the Act
- File form MSC 1 and pay 50% of the normal fee under the rules.
- Enables inactive companies to remain on the register of companies with minimal compliance requirements.
Option C – Strike off
- File Form STK 2 by filing 25% of the applicable filing fee under Companies (Removal of Name of Companies from the Registrar of Companies) Rules, 2016.
Forms applicable
Under Companies Act 2013
- MGT 7, MGT 7A
- AOC 4, AOC 4 CFS, AOC 4 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 66
- Form 23B
Following companies are excluded from the benefit of availing this scheme:-
- Companies against which action of final notice for striking off the name u/s. 248 of the Companies Act 2013 (section 560 of the Companies Act 1956)
- Companies which have filed applications for striking off their name from the register of companies
- Companies which have filed for obtaining dormant status under section 455 of the Act before inception of the scheme
- Companies which have been dissolved pursuant to a scheme of amalgamation under the Act
- Vanishing companies
Immunity & penalty relief
No penalty shall be leviable if:
- Filing made under this scheme before adjudication notice or within 30 days of the issuance of the notice by the adjudicating officer
However, if the time period of 30 days have expired after notice or penalty order has been passed, then the filing under this scheme will only reduces the additional filing fee and it will not reduce the penalty liability.
Conclusion
Keeping in view the benefits being given under this scheme. It will be beneficial to the defaulting companies and officers in default to avail this scheme and put their respective companies on a clean and clear track.
