The Companies Compliance Facilitation Scheme, 2026, will remain in force between April 15 and July 15. It will allow companies to complete their pending submission of annual returns and financial statements during these three months by paying just 10% of the stipulated penalties, according to a circular issued by the ministry.
Since July 2018, companies are required to pay an additional fee of Rs 100 per day for the late filing of annual returns and financial statements.
The returns and statements are uploaded on the latest version of the MCA21 portal, meant for various corporate filings.
The scheme is being announced, acceding to the request for such a relaxation by stakeholders, including small and medium businesses, the ministry said. It is also part of the ministry’s broader efforts to promote the ease of doing business, it suggested.
Some experts also blamed persistent technical glitches for the difficulty in filing various forms on the latest version, called V3, of the MCA21 portal. The latest relief will help a large number of companies, they said.
In fact, the V3 portal has drawn frequent criticism over technical glitches since its rollout in 2023 (for company filings), although some of the issues have since been resolved.As per the scheme, companies can also get themselves declared as “dormant” under section 455 of the Companies Act by paying half of the normal fee. The dormant status typically reduces the compliance requirements for these companies.
Similarly, companies can get their names struck off by filing an application during the time when the scheme is in force by paying 25% of the filing fees, according to the circular.
“The scheme is aimed at improving compliance levels and ensuring that the corporate registry reflects accurate and up-to-date information,” the ministry said in the circular.
“Additionally, it is aimed at facilitating inactive or defunct entities to opt for dormancy/closure by paying lesser fees,” it added.