Global Partner. Integrated Solutions.
25 February 2026
MCA Announces Scheme to Regularize Non-compliances
 
The Ministry of Corporate Affairs ("MCA") has introduced the Companies Compliance Facilitation Scheme 2026 ("CFSS 2026") on 24th February 2026.

CFSS 2026 gives companies the opportunity to file certain overdue filings at a lower additional fee. This alert summarizes the key aspects of CFSS 2026:

Particulars Comments
Scope of CFSS 2026
  • Complete pending annual filings by paying 10% of the total additional fees payable on account of delay
  • Get company declared as 'dormant company' by paying half of the normal fees
  • Get the company struck-off (closed) by paying 25% of the filing fees
Validity of CFSS 2026 CFSS 2026 shall come into force on 15th April 2026 and shall remain in force till 15th July 2026
Relevant forms covered under CFSS 2026 Following forms, which remained overdue, can be filed under CFSS 2026 with lesser fees:
  • Annua return [Form MGT-7, MGT-7A]
  • Annual Accounts [Form AOC-4, AOC-4 (CFS), AOC-4 NBFC (IndAS), AOC-4 CFS NBFC (IndAS), AOC-4 (XBRL)
  • Form pertaining to appointment of auditor [Form ADT-1]
  • Annual Accounts by foreign companies [Form FC-3]
  • Annual return by foreign companies [Form Fc-4]
  • Aforesaid forms under erstwhile Companies Act, 1956
Non applicability of CFSS 2026 CFSS 2026 shall not be applicable to following companies:
  • Companies where final notice for strike-off under Section 248 has been issued by Registrar
  • Companies that have already applied for strike-off
  • Companies that have already applied for dormant status before the Scheme
  • Companies dissolved pursuant to amalgamation
  • Vanishing companies
Immunity pursuant to filing under CFSS 2026
  • No penalty shall be leviable if filing is made under CFSS 2026
  • For pending filings under erstwhile Companies Act, 1956, immunity would be granted from further penal action if:
    • No prosecution has been filed; and
    • No show cause notice has been issued before filing under the Scheme
Our Comments

CFSS 2026 gives one-time opportunity to allow companies to file their overdue filings with the registry with lower additional fees. Also, it is aimed at facilitating inactive or defunct companies to opt for dormancy status or closure by paying lesser fees. CFSS 2026 is expected to improve compliance levels and ensure that the corporate registry reflects accurate and up-to-date information.

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