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within Employment and HR and Accounting and Audit topic(s)
with Senior Company Executives, HR and Inhouse Counsel
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:
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.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
