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On February 24, 2026, Ministry of Corporate Affairs introduced Companies Compliance Facilitation Scheme, 2026 (“Scheme”) through a general circular no. 01/2026. The Scheme offers companies a three-month compliance window from April 15 to July 15, 2026 to regularize pending annual filings and file dormant and strike-off applications at lower fees. The Scheme will not apply to amalgamated or dissolved and vanishing companies. Vanishing companies are listed entities who failed to file returns for continuous two years, do not maintain its registered office and its directors are not traceable. Key reliefs are below
- Annual filings: Companies that fail to complete annual filings within due date can do so, and pay late fee of INR 100 per day to regularize the filings. It includes forms for annual returns, financials, compliance certificate and auditor’s appointment. The Scheme provides dual benefits of filing pending forms i.e., (a) 90% waiver on late fee; and (b) immunity from penalty proceedings. Penalty could go up to INR 200,000 or USD 2,164 on companies and up to INR 50,000 or USD 540 per defaulting officer per pending form. The immunity will not apply where penalties have already been adjudicated or orders have been passed.
- Dormant companies: Dormant companies refer to inactive non-operational companies, who file an application to obtain “dormant” status. Its filing fee is based on company’s authorized capital. The Scheme provides 50% waiver on such fee. It will not apply to companies which have already applied for such status.
- Strike-off: Companies that intend to close operations through fast-track exit method can file strike-off application at a fee of INR 10,000 or USD 109. The Scheme reduced it to 25% i.e., INR 2,500 or USD 28. This relief is unavailable to companies that have already filed strike-off application or where final notice has been initiated by Registrar of Companies.
Over time, many companies accumulate multiple filing defaults, which expose companies and its directors to adjudication proceedings, penalties and potential disqualifications. The Scheme will act as a compliance reset opportunity. This initiative will provide protection to companies from heavy penalties and lengthy adjudication proceedings. It is particularly meaningful for small companies, start-ups and micro-enterprises, which often face cash-flow constraints. It will enable them to restore compliance without severe economic strain. For regulators, it helps clean up the MCA’s database and reduce enforcement backlog.
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