MCA FURTHER EXTENDS COMPANIES COMPLIANCE FACILITATION SCHEME, 2026 UP TO 15 SEPTEMBER 2026

Introduction:

In a major relief to corporate entities across India, The Ministry of Corporate Affairs (“MCA”), vide General Circular No. 04/2026 dated 31 August 2026, has further extended the validity of the Companies Compliance Facilitation Scheme, 2026 (“CCFS-2026” or “Scheme”) up to 15 September 2026.

Background:

Originally introduced vide General Circular No. 01/2026 on February 24, 2026, the Scheme provides a one-time, highly concessional window for companies to clear their backlog of pending statutory filings. This latest announcement marks the second extension of the Scheme (following an earlier extension up to August 31, 2026, vide General Circular No. 03/2026). The extension has been granted in view of representations received from various stakeholders. The MCA has clarified that all other terms and conditions of the Scheme remain unchanged.

Rationale Behind CCFS-2026:

• MCA introduced the CCFS-2026, against the backdrop of the increasing compliance burden faced by companies in regularising delayed statutory filings. Under Section 403 of the Companies Act, 2013 read with the Companies (Registration Offices and Fees) Rules, 2014, delayed filing of annual returns and financial statements attracts an additional fee of ₹100 per day, without an upper limit.
• The MCA noted that the number of active companies in India had crossed 20 lakhs, reflecting the increasing formalisation of the economy and the growth of new-age entrepreneurs, MSMEs, producer companies and One Person Companies. The Ministry also received representations from various stakeholders seeking relief from the additional fees. It was further noted that certain companies, including MSMEs and private companies, had been unable to complete their annual compliances within the prescribed timelines, resulting in a significant financial burden on account of accumulated additional fees.
• Against this backdrop, CCFS-2026 was introduced as a one-time opportunity for eligible companies to regularise specified pending filings with the MCA-21 registry, or, where applicable, to pursue dormancy or closure. The Scheme is intended to facilitate improved compliance levels and ensure that the corporate registry reflects accurate and up-to-date information.

Key Features of the Scheme:

CCFS-2026 provides eligible companies and inactive companies with three principal compliance pathways, depending on whether they intend to continue operations, retain their corporate existence in dormant status, or exit the corporate registry.

1. Regularisation of Pending Filings — For Companies Continuing Operations

Companies that intend to continue their business but have pending annual filings can use the Scheme to regularise specified overdue filings at significantly reduced additional fees.

Financial benefit: The company is required to pay the applicable normal filing fee together with only 10% of the additional fees otherwise payable for the delay, effectively reducing the additional-fee burden by 90%.

2. Obtaining Dormant Status — For Inactive Companies

Companies that are not presently carrying on business but wish to retain their corporate existence may opt to obtain dormant status under Section 455 of the Companies Act, 2013.

Financial benefit: An eligible company may apply for dormant status by filing e-form MSC-1 and paying 50% of the normal filing fee applicable under the Rules. The Scheme states that this enables inactive companies to remain on the register with minimal compliance requirements.

3. Concessional Strike-Off — For Companies Seeking Closure

Companies that are no longer required and satisfy the applicable conditions may use the Scheme to seek removal of their names from the Register of Companies.

Financial benefit: Eligible companies may file e-form STK-2 during the currency of the Scheme and pay only 25% of the applicable filing fee under the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016.

Conclusion:

The extension of CCFS-2026 up to 15 September 2026 provides eligible companies with an additional opportunity to address their pending statutory compliances within the existing framework of the Scheme. Since the MCA has clarified that all other terms and conditions remain unchanged, the existing compliance concessions and mechanisms available under CCFS-2026 continue to apply during the extended period. Companies with outstanding filings should therefore assess their eligibility and utilise the Scheme within the extended timeline to regularise their compliances and bring their statutory records up to date.