The Ministry of Corporate Affairs (MCA) issued General Circular No. 01/2026 on February 24, 2026, introducing a one-time scheme to address the backlog of annual filings and reduce the financial burden on companies, particularly MSMEs and private entities.
1. Purpose and Duration
The scheme aims to improve compliance levels and update the corporate registry by allowing companies to file pending documents or opt for dormancy/closure at a reduced cost.
- Effective Date: April 15, 2026.
- Expiry Date: July 15, 2026.
2. Financial Incentives
The scheme provides significant relief regarding additional fees normally required for late filings under Section 403 of the Companies Act.
| Action | Fee Requirement under CCFS-2026 |
| Pending Annual Filings | Normal fees + 10% of the standard additional fees. |
| Status as ‘Dormant Company’ | 50% (half) of the normal filing fee for e-form MSC-1. |
| Company Strike-Off | 25% of the applicable filing fee for e-form STK-2. |
3. Applicability and Exclusions
The scheme applies to “relevant e-forms” including MGT-7, AOC-4, ADT-1,MSC-1, STK-2 and various forms under the Companies Act 1956. However, it does not apply to:
- Companies already issued final strike-off notices under Section 248.
- Companies that already filed for strike-off or dormant status before the scheme.
- Companies dissolved via amalgamation or classified as “vanishing companies”.
4. Immunity Provisions
- Adjudication Relief: For filings under sections 92 or 137, no penalty is leviable if filings are made before an adjudicating officer issues a notice, or within 30 days of such notice.
- Prospective Immunity: For other forms (e.g., ADT-1, FC-3), immunity is granted against prospective penal action provided no prosecution or adjudication has been initiated prior to filing under the scheme.
- Limitations: The scheme does not alter liabilities for penalties if the 30-day window after a notice has expired or if an adjudication order has already been passed.
Note: Upon the conclusion of the scheme on July 15, 2026, Registrars of Companies (ROCs) are directed to take legal action against companies that remain in default.
Would you like me to draft a checklist of the “relevant e-forms” mentioned in the circular for your records?