A company can file overdue e-forms by just paying 10 per cent of the additional fee. This will be possible with the help of one-time three months special compliance scheme prepared by the Corporate Affairs Ministry. It has made it clear the defaulting companies are liable to be subject to enforcement action, if they fail to avail the scheme.
The scheme, Companies Compliance Facilitation Scheme, 2026 (CCFS-2026), has come into operation with effect from April 15 and will be in force till July 15. It covers all pending filings. It aims to enable companies to file overdue annual returns, financial statements, and certain other relevant e-forms by paying concessional fees. It also provides a window for eligible companies to opt for dormant status or to file for closure. “The Scheme is intended to improve compliance levels, reduce the burden of accumulated additional fees on companies, and ensure that the corporate registry reflects accurate and up to date information,” the Ministry said.
Under the scheme a company filing overdue relevant e-forms during the 3-month period is required to pay only 10 per cent of the additional fee. For example, delay in filing annual return attracts additional fee at the rate of ₹100 per day. Now, in case the annual return is being filed with a delay of 300 days, then the additional fees payable would be 300*100 = ₹30,000. However, if such filing is made during the currency of the scheme, an additional fee of ₹3,000 would be payable.
Similarly, if a company applies for dormant status in e-form (MSC-1), it will be required to pay one-half of the normal filing fee applicable under the rules. At the same time, a company filing e form for strike off, then during the currency of the Scheme it is required to pay only one-fourth of the applicable filing fee. Also, there will be immunity from penalty in certain cases.
Where filings under Sections 92 and Section 137 of Companies Act are made before issuance of notice by the adjudicating officer, or within 30 days of such notice, proceedings are concluded and no penalty shall be leviable, the Ministry said. In other cases, immunity against prospective penal action is available if the forms are filed under the Scheme, and no prosecution has been filed, and no adjudication proceedings have been initiated by issuance of a show cause notice before such filing.
It is important to note that there will be no concession on the normal filing fee in respect of annual filing-related forms. Also, there is no immunity available against default of Section 96 (related with mandatory holding of Annual General Meeting each calendar year). However, “the companies can conduct AGM for any of the previous financial years, adopt the Financial Statements for respective FY and subsequently update their filings availing the Scheme,” the Ministry said.
It also warned of serious consequences for defaulting companies, “After the Scheme closes, the defaulting companies are liable to enforcement action, including striking off from the register,” it said.
