Corporate Affairs Ministry extends validity of key compliance scheme up to August 31

The corporate affairs ministry has extended by a month and a half the validity of a one-time scheme that slashes penalties for companies for late filings of financial statements and annual returns, aimed at enabling them to complete pending compliances.

The validity of the Companies Compliance Facilitation Scheme, 2026, is now extended up to August 31 from July 15, the ministry said in a circular. The scheme came into effect from April 15.

The decision to extend the deadline was made by the government “in view of the capacity enhancement/restoration activities being done at data centre consequent to a fire incident on June 5”, as per the circular.


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The scheme 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 February 2026 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.

As per the scheme, companies can get themselves declared as “dormant” under section 455 of the Companies Act by paying half of the normal fee. The dormant status 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.

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“The scheme is aimed at improving compliance levels and ensuring that the corporate registry reflects accurate and up-to-date information,” the ministry had said in the February circular. “Additionally, it is aimed at facilitating inactive or defunct entities to opt for dormancy/closure by paying lesser fees.”