A S BANKA ADVISORS

If your startup has an inactive shell company on the books, or if you have been putting off annual filings for a year or three, MCA just gave you a reason to act now.

The Companies Compliance Facilitation Scheme (CCFS-2026), announced via General Circular No. 01/2026 dated February 24, 2026, offers a one-time amnesty window from April 15 to July 15, 2026. The headline benefit: a 90% waiver on additional (late) filing fees for pending annual filings.

What the Scheme Offers

CCFS-2026 covers three types of benefits:

• 90% waiver on late fees for pending annual returns (MGT-7, MGT-7A) and financial statements (AOC-4, AOC-4 CFS, AOC-4 XBRL, AOC-4 NBFC). You pay only 10% of the additional fees.
• 50% fee reduction for dormant status applications (Form MSC-1). Ideal for companies you want to keep registered but are not actively operating.
• 75% fee reduction for voluntary strike-off applications (Form STK-2). If you have a company you no longer need, this is the cheapest way to close it.

On top of the fee savings, the scheme provides prosecution immunity under Sections 92 and 137 of the Companies Act, 2013, provided filings are completed before adjudication notices are issued or within 30 days of receiving such notice.

The Math: How Much Can You Save?

Consider a private limited company with 3 years of overdue MGT-7 and AOC-4 filings. Without the scheme, additional late fees typically exceed Rs 1,80,000. Under CCFS-2026, you pay just 10%, bringing the total to approximately Rs 18,000, a saving of Rs 1,62,000.

Who Should Act

• Startups with inactive entities: If you incorporated a company for a project that never took off, use this window to either file dormant status (MSC-1 at 50% fee) or apply for voluntary strike-off (STK-2 at 25% fee). This prevents DIN deactivation for your directors.
• Companies with multi-year backlogs: Even filings pending since 2014 or earlier (legacy forms 20B, 21A, 23AC, 23ACA) are covered. The scheme applies to both Companies Act 2013 and former Companies Act 1956 entities.
• Directors at risk: If your DIN is at risk of deactivation because a company you are associated with has non-filed returns, clearing those filings during this window removes the risk.

What Happens After July 15

MCA has been clear: post-scheme enforcement will be aggressive. Full additional fees (100%) resume, prosecution proceedings under Sections 92 and 137 begin, director disqualification risk increases, and ROCs may initiate suo motu strike-off under Section 248, removing your company from the register without consent.

Download the Full Carousel Guide

We have prepared a detailed visual breakdown of the scheme, including forms covered, cost savings, eligibility, and the post-scheme enforcement timeline. Download the full carousel PDF here.

Get Expert Guidance

Need help preparing overdue financial statements or annual returns before the April 15 window opens? Schedule a strategy session with A S Banka Advisors Private Limited: Book a quick call.