Compliance relief scheme extended to September 15 | Today’s news

The government has extended for a second time a one-off scheme that gives companies more time to complete outstanding obligations, such as filing financial statements and annual returns, by paying much lower fines.

According to a Ministry of Corporate Affairs (MCA) circular dated 31 August, the validity of the Company Compliance Facilitation Scheme 2026 has been extended by 15 days to 15 September. It was previously extended to August 31 from the original date of July 15. The program went into effect on April 15.

The latest expansion follows “statements received from various stakeholders,” the ministry said. The ministry granted the first extension in July, saying it was done “in view of the capacity augmentation/restoration activities being carried out at the data center as a result of the June 5 fire.”

Companies using the scheme can file pending annual returns and financial statements by paying just 10% of the usual penalties.

“The scheme is aimed at improving compliance levels and ensuring that the business register reflects accurate and up-to-date information,” said the ministry’s first circular on the scheme, issued in February. “Furthermore, it is aimed at facilitating inactive or defunct entities to opt for dormancy/closure by paying lower fees.”

In a common source of events, companies were required to pay an additional fee of ₹100 per day from July 2018 for late submission of annual returns and financial statements to the MCA21 portal, meant for various corporate filings.

Companies can also obtain ‘dormant’ status under this scheme under Section 455 of the Companies Act by paying only half the usual fee. Inactive status typically reduces compliance requirements.

Companies can also get their names cleared during the program period by paying only a quarter of the applicable filing fee.