CCFS 2026: Government Waives 90% Penalty for Late Company Filings – What Every Business Owner Must Know
If your company has missed filing its Annual Return or Financial Statements — even for multiple years — the Indian Government has just given you a golden opportunity to fix everything without paying a massive fine. The Ministry of Corporate Affairs (MCA) has launched the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), a limited-time scheme that lets you settle all your pending filings by paying just 10% of the total additional fees (penalties) that have piled up.
Read on to understand what this scheme means, who can use it, and how to make the most of it before it expires.
What Is the CCFS-2026 Scheme?
The Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) is a one-time amnesty scheme launched by the Government of India under the Companies Act, 2013. It allows companies — especially small businesses, MSMEs, startups, and One Person Companies (OPCs) — to:
- File overdue Annual Returns and Financial Statements at a heavily discounted penalty (just 10% of the total additional fees).
- Apply for Dormant Company status at half the normal filing fee.
- Close their company (Strike Off) at only 25% of the applicable fees.
This scheme is available from 15th April 2026 to 15th July 2026. After this window closes, the government will take strict action against non-compliant companies.
Why Do Companies Get Penalized in the First Place?
Under the Companies Act, 2013, every registered company in India must file:
- Annual Return (Form MGT-7 / MGT-7A)
- Financial Statements (Form AOC-4)
If these are not filed on time, a penalty of ₹100 per day per form applies — with no maximum cap. This means a company that has missed filings for just two years could owe ₹70,000 or more in penalties alone, even before paying the normal fees.
Many small businesses, new entrepreneurs, and MSMEs have fallen behind on these filings — sometimes simply because they were unaware of the requirements or couldn’t afford professional help. The CCFS-2026 scheme is specifically designed to give such companies a fresh start.
Three Options Under CCFS-2026 — Choose What Suits You
Option 1: Clear Your Pending Filings at 10% Penalty
This is the most popular option for companies that want to remain active and become compliant. Instead of paying 100% of the accumulated additional fees (penalties), you pay only 10% — a 90% saving!
Example: If your total additional fee liability is ₹1,00,000, you only pay ₹10,000 under this scheme.
Option 2: Apply for Dormant Company Status at 50% Fee
If your company is currently inactive but you want to keep it registered for future use, you can apply to become a ‘Dormant Company’ under Section 455 of the Companies Act. Under CCFS-2026, the filing fee for this application (e-Form MSC-1) is reduced by 50%. Dormant companies have minimal compliance requirements — perfect if you plan to restart operations later.
Option 3: Shut Down Your Company at 25% of Filing Fees
If your company is no longer functional and you want to close it permanently, you can apply for ‘Strike Off’ (removal from the register) using e-Form STK-2. Under this scheme, you pay only 25% of the normal filing fees for this process, making it much cheaper to wind down your company legally.
Fee Structure at a Glance
| What You’re Doing | Normal Cost | Cost Under CCFS-2026 |
| File pending Annual Returns / Financial Statements | Normal fee + 100% additional fees | Normal fee + only 10% of additional fees |
| Apply for Dormant Company status | Full filing fee (e-Form MSC-1) | 50% of normal filing fee |
| Close / Strike Off your company | Full filing fee (e-Form STK-2) | 25% of normal filing fee |
Who Can Use This Scheme?
All companies registered under the Companies Act, 2013 or the old Companies Act, 1956 can use this scheme — EXCEPT the following:
- Companies that have already received a final notice for striking off from the Registrar of Companies (RoC).
- Companies that have already applied for strike-off themselves.
- Companies that have already applied for Dormant Status before this scheme started.
- Companies that have been dissolved through a merger or amalgamation.
- Vanishing companies (companies that cannot be traced).
If your company does not fall in any of these categories, you are eligible
Which Forms Are Covered?
The scheme covers the following forms (called ‘relevant e-forms’):
Under the Companies Act, 2013:
MGT-7, MGT-7A (Annual Return), AOC-4, AOC-4 CFS, AOC-4 NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS), AOC-4 (XBRL), ADT-1, FC-3, FC-4
Under the old Companies Act, 1956:
Form 20B, Form 21A, Form 23AC, Form 23ACA, Form 23AC-XBRL, Form 23ACA-XBRL, Form 66, Form 23B
What Legal Protection (Immunity) Does This Scheme Provide?
Filing under CCFS-2026 can protect you from penalties in certain situations:
Full Immunity (No Penalty):
If you file before any notice has been issued by the adjudicating officer, OR within 30 days of such notice being issued, no penalty under Sections 92 or 137 of the Companies Act will be levied on you.
Partial Protection:
If a penalty order has already been passed, or the 30-day window after a notice has expired, filing under the scheme does NOT remove the liability to pay the already-imposed penalty. However, you still benefit from lower filing fees.
Important Dates — Don’t Miss the Deadline!
| Event | Date |
| Scheme Start Date | 15th April 2026 |
| Scheme End Date | 15th July 2026 |
| Duration | 3 Months |
The scheme is only active for 3 months. Once it closes, the Registrars of Companies will initiate strict action against all non-compliant companies
What Happens If You Don’t Act?
The circular explicitly states that after the scheme ends, Registrars of Companies will take necessary action under the Companies Act against all defaulting companies. This could include:
- Heavy financial penalties on the company and its directors.
- Disqualification of directors.
- Forced strike-off of the company from the register.
- Legal proceedings against the company and its officers.
Missing this scheme means losing a 90% discount on your penalties — and risking serious legal trouble.
Step-by-Step: How to Use CCFS-2026
Step 1: Check your company’s filing status on the MCA-21 portal (www.mca.gov.in) and identify all pending forms.
Step 2: Calculate your total additional fee liability to understand how much you’ll save under the scheme.
Step 3: Consult a Company Secretary (CS) or Chartered Accountant (CA) to help prepare and file the required e-forms.
Step 4: File the relevant e-forms between 15th April and 15th July 2026 on the MCA-21 portal.
Step 5: Pay the normal fees plus only 10% of the additional fees (or opt for Dormant/Strike-Off as applicable).
Step 6: Download the acknowledgement and keep records of the filings for future reference.
Final Thoughts
The CCFS-2026 scheme is one of the most business-friendly initiatives the Ministry of Corporate Affairs has introduced in recent years. For small companies, MSMEs, startups, and OPCs that have fallen behind on their compliance, this is a rare chance to wipe the slate clean at minimal cost.
Don’t wait until the last minute. Reach out to a qualified Company Secretary or Chartered Accountant today, check your pending filings, and take advantage of this limited-time opportunity before 15th July 2026.
Remember: After the scheme closes, there will be no mercy from the Registrar.
