MCA Introduces One-Time Compliance Facilitation Scheme for Companies

On February 24, 2026, the Ministry of Corporate Affairs (MCA), vide general circular and in exercise of powers conferred under Section 460 read with Section 403 of the Companies Act, 2013 (CA 2013), has notified the Companies Compliance Facilitation Scheme, 2026 (Scheme). The Scheme offers companies a one-time opportunity to clear pending statutory filings at a substantially reduced additional fee, with conditional protection from penalty proceedings. It will remain operative from April 15, 2026, to July 15, 2026 (Facilitation Period).

1. Background:

A significant number of companies continue to have outstanding filings of annual returns and financial statements. Against this backdrop, the Scheme has been introduced with the objective of facilitating clearance of long-pending statutory filings, alleviating the financial burden arising from substantial additional filing fees and encouraging inactive companies to regularise their operations, transition to dormant status, or opt for closure through the strike-off mechanism

The key features of the Scheme are outlined below:

• • Reduced Additional Fees for Delayed Filings:

During the Facilitation Period, companies may file pending financial statements along with the board’s report, annual returns, and other relevant e-forms. Only 10% of the additional fees that would otherwise be payable for such delayed filings will be levied, with normal statutory filing fees remaining applicable. This represents considerable relief, as additional fees under the ordinary regime accrue on a per-day basis with no upper cap.

• • Dormant Company Applications:

Companies that are otherwise eligible for dormant status may, during the Facilitation Period, submit an application in e‑Form MSC‑1 on payment of 50% of the normal filing fee prescribed for such application. This enables inactive but compliant companies to retain their corporate status with significantly reduced ongoing compliance obligations compared to an active company.

• • Voluntary Strike-Off:

For defunct or non-operational entities seeking voluntary closure, the relevant form may be filed at 25% of the prescribed filing fee during the Facilitation Period.

• • Immunity from Penalty Proceedings:

Companies that complete their eligible pending filings within the Facilitation Period will receive immunity from penalty proceedings under Sections 92 and 137 of CA 2013, attributable to such delayed filings, provided such filings are made either before a notice is issued by the adjudicating officer or within 30 days of the issuance of such notice. This immunity will not, however, extend to cases if the period of 30 days after issuance of notice for adjudication has expired or where an adjudication order imposing a penalty for defaults under Sections 92 and 137 of CA 2013 has already been passed.

• • Eligibility and Exclusions:

The Scheme is open to companies with pending financial statement and/or annual return filings, as well as those seeking to regularize defaults before transitioning to dormant or strike-off status. There are categories of companies that are excluded such as companies that have already been struck off or dissolved, companies classified as vanishing companies, and companies in respect of which final action for strike-off has already been completed.

Conclusion: 

The Scheme provides a way for entities to rectify past defaults without the standard per-day penalties. By capping additional fees at 10% and offering reduced rates for dormancy or strike-off applications, the Scheme provides substantial financial relief to companies looking to regularize their past defaults.