Don’t Let Late Fees Drain Your Capital: Unlock Concessional Filings via the CCFS-2026

The CCFS 2026, or Companies Compliance Facilitation Scheme, provides a one-time, three-month window of opportunity for Indian companies to regularize overdue statutory filings.

Companies occasionally fall behind on statutory compliance requirements, which may result in financial penalties. In recent years, several corporate regulatory processes have been digitized and streamlined in India, enabling companies to complete filings more efficiently, even after the prescribed deadlines.

Under the Companies Act, 2013, all companies registered in the country must annually submit their Annual Return and Financial Statements to the central government. The applicable filing fees and penalties are determined under Section 403 of the Act and the Companies (Registration Offices and Fees) Rules, 2014.

To provide companies with a one-time opportunity to regularize pending statutory filings, the central government has introduced the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026). The scheme comes under Sections 460 and 403 of the Companies Act, 2013.

The scheme allows companies to complete overdue filings relating to annual returns and financial statements on the MCA-21 portal at reduced additional fees. It also enables inactive or non-operational companies to opt for dormant status or closure at concessional costs.

Key objectives and benefits of CCFS

Since July 1, 2018, companies that submit their annual return and financial statements after the due date are required to pay an additional fee of INR 100 (US$1.08) per day. There is no upper limit on the total penalty. Companies that missed filing deadlines can face substantial financial burdens.

Find Business Support

Stay on top of latest compliance requirements with our business advisory service. Speak with an expert

The CCFS-2026 has been introduced to strengthen corporate compliance while ensuring that the official company registry maintains accurate and up-to-date information.

The scheme aims to:

• Enable companies to complete overdue annual filings at a reduced cost
• Encourage businesses to update and regularize their records in the registry maintained by the Ministry of Corporate Affairs (MCA)
• Provide inactive or non-operational companies the option to opt for dormancy or closure at lower compliance costs
• Improve the overall accuracy and transparency of India’s corporate database

The initiative is particularly beneficial for MSMEs, startups, One Person Companies (OPCs), and private limited companies that may have previously missed statutory compliance deadlines.

ALSO READ: Company Director KYC Simplified: India Moves to Three-Year Filing from March 31, 2026

Options available under the scheme

Companies with pending filings can choose one of the following options:

1. Complete pending annual filings

Companies can submit their overdue annual return and financial statements by paying only 10 percent of the total additional late fees.

2. Apply for dormant status

Inactive companies can apply to become a “dormant company” under Section 455 of the Companies Act by filing Form MSC-1.

• They need to pay only half of the normal filing fee.
• Dormant companies remain registered but have minimal compliance requirements.

3. Apply for company strike-off

Companies that want to close operations can apply for removal of their name from the company register by filing Form STK-2. Only 25 percent of the normal filing fee needs to be paid under the scheme.

The Companies Compliance Facilitation Scheme, 2026, gives companies a practical opportunity to get back on track. With a 90% waiver on additional fees for pending annual filings, a 50% concession for obtaining dormant status, and a 75% reduction in strike-off filing fees, the scheme significantly reduces the financial burden on businesses. It also provides relief to companies that missed timelines w.r.t. appointment of the first auditor. For many small businesses and startups, compliance delays often happen due to limited resources or lack of awareness. By lowering costs and encouraging voluntary compliance, it supports a smoother, more formal, and business-friendly ecosystem – Parul Sharma, Manager, BAS, Dezan Shira & Associate, India

The CCFS-2026 scheme will be available for a three-month period, starting April 15, 2026, till July 15, 2026.

Companies must complete their filings or applications within this period to receive the benefits.

Forms covered under the scheme

The CCFS 2026 applies to several key statutory filings that companies are required to submit under the Companies Act, 2013. These forms primarily relate to annual compliance, financial reporting, and regulatory disclosures.

The scheme covers the following commonly used forms:

• MGT-7 / MGT-7A – Filing of the annual return by companies
• AOC-4 and its variants—submission of financial statements with the MCA
• ADT-1 – Intimation of the appointment of a company’s auditor
• FC-3 / FC-4 – Compliance filings required for foreign companies operating in India

In addition, the scheme also provides relief for certain legacy forms that were applicable under the earlier Companies Act, 1956, allowing companies with pending historical filings to regularize their compliance status.

Companies not eligible to apply

It must be noted that the CCFS-2026 scheme is not available to the following:

• Companies that have already received final strike-off notice from the Registrar of Companies (RoC)
• Companies that have already applied for strike-off
• Companies that already applied for dormant status before the scheme started
• Companies dissolved through amalgamation
• Vanishing companies

Penalty relief and immunity

Find Business Support

Tax laws and regulations throughout Asia are continuously being updated and refined. Our team of professionals is accustomed to...

Companies that complete filings under the scheme may receive relief from penalties for delays related to annual returns and financial statements, provided:

• The filings are completed before a penalty notice is issued, or
• They are completed within 30 days of receiving such notice.

If penalties have already been imposed through a final adjudication order, those penalties will still apply.

CCFS 2026 key takeaway

The CCFS 2026 presents a strategic opportunity for various business entities to resolve pending compliance issues at a reduced cost. Businesses with overdue filings should conduct an internal review of their statutory obligations. Additionally, identify any backlog related to annual returns, financial statements, or auditor appointments.

Companies that are no longer operational may also consider evaluating whether dormant status or voluntary strike-off would be a more efficient compliance strategy. Taking advantage of the scheme within the limited window can help organizations reduce financial liabilities and ensure that their records with the MCA remain accurate and up-to-date.

CLICK HERE: Corporate Tax Compliance for Foreign Companies in India: A Practical Roadmap for 2026

(US$1 = INR 92.32)

Setting up a business in India requires navigating company registration, local approvals, and work permit processes. We help FDI companies by preparing and submitting documentation, coordinating with authorities, and ensuring compliance, so they can start operations smoothly and focus on growth.

Parul Sharma

Manager

Talk to an expert at India@dezshira.com

Or request a consultation at +91 0124 4001785 ext. 205

• Previous Article Intellectual Property Rights in India: Laws and Procedures for Registration
• Next Article Protecting Your Brand in India: Trademark Registration and IP Strategy for Foreign Businesses