MCA Issues Companies Compliance Facilitation Scheme, 2026

The Ministry of Corporate Affairs ("MCA"), through circular dated 24.02.2026, introduced the Companies Compliance Facilitation Scheme, 2026 ("Scheme").¹ The Scheme will be in force from 15.04.2026 to 15.07.2026 ("Scheme Enforcement Period").

The Scheme provides a one-time opportunity for companies to regularise delays in filing annual returns and financial statements by paying substantially reduced additional fees, or alternatively to opt for dormant status or strike-off at concessional rates.

During the Scheme Enforcement Period, eligible companies may file pending annual return and financial statement forms by paying normal filing fees along with only 10% of the additional fees as prescribed under the Companies (Registration Offices and Fee) Rules, 2014 ("Registration Offices and Fee Rules").

In addition, inactive companies may apply for dormant status under Section 455 of the Companies Act, 2013 ("Companies Act") by filing e-Form MSC-1 and paying half of the normal filing fees applicable in this regard under the Registration Offices and Fee Rules. Alternatively, companies may apply for strike-off by filing e-Form STK2 and paying only 25% of the prescribed filing fees under the applicable Registration Offices and Fee Rules.

The Scheme applies to specified annual compliance forms under the Companies Act, which include e-forms MGT-7, MGT-7A, АОС-4, АОC-4 CFS, AOC-4 NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS), AOC-4 (XBRL), ADT-1, FC3, FC-4, and certain forms under the Companies Act, 1956, including e-forms Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66 and Form 23B. However, it does not apply to companies against which final strike-off action has already been initiated under Section 248 of the Companies Act, companies that have already applied for strike-off, companies that obtained dormant status prior to inception of the Scheme, companies dissolved pursuant to amalgamation, or vanishing companies.

With respect to immunity, in cases involving default under Sections 92 and 137 of the Companies Act, no penalty shall be levied if the filings are made under the Scheme prior to issuance of notice by the adjudicating officer or within thirty days of such notice. Where adjudication orders imposing penalties have already been passed, the liability to pay such penalties remains unaffected. For certain other specified forms (i.e. ADT-1, FC-3, FC-4, Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66 and Form 23B), immunity against prospective penal action is available provided no prosecution or adjudication proceedings had been initiated prior to filing under the Scheme.

Upon conclusion of the Scheme Enforcement Period, the Registrars of Companies are expected to initiate appropriate action against companies that continue to remain in default.

Footnote

1. Companies Compliance Facilitation Scheme, 2026

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