Ahmedabad: Companies that fail to use the extended window under the Companies Compliance Facilitation Scheme (CCFS) 2026 will face stricter regulatory action after the scheme closes on Aug 31.The ministry of corporate affairs has indicated that the scheme is a one-time compliance reset. Once the deadline passes, enforcement action is expected against companies that continue to keep statutory filings pending. Directors of defaulting companies risk losing eligibility to serve on other boards and huge penalty may be imposed too, said sources.Under CCFS 2026, companies are being allowed to regularise long pending annual return and financial statement filings at sharply reduced cost. Active and inactive companies can file overdue annual returns and financial statements by paying only 10% of the normal additional fee otherwise payable for delays. Inactive companies also have the option to move to dormant status by filing a form at half the normal fee. Entities that are no longer carrying on business can apply for voluntary strike off at 25% of the standard filing fee.“CCFS is not merely a fee waiver. It is the last structured opportunity for companies to clean up their statutory record and protect their directors from avoidable regulatory exposure. After the closing date, the system will revert to full consequences, and the registrar will have little scope to condone habitual default,” said Rajesh Tarpara, a central council member of ICSI.He said the scheme covers delayed annual returns and financial statements, related belated filings, and concessional options for inactive entities through dormant status or voluntary strike-off.Once the scheme ends, additional fees on delayed forms will resume in full and continue to accumulate daily. The Registrar of Companies is expected to initiate prosecution for continuing defaults, and penalties may be imposed on both companies and officers responsible for filings.Directors of non-compliant companies also risk disqualification under the law, which can affect their ability to hold board positions elsewhere. Persistently inactive or defaulting companies may face strike-off action, which would remove them from the corporate register and increase the legal burden on stakeholders.“Boards should use the remaining period to complete pending filings or opt for dormant status or orderly exit, because the post-scheme phase is expected to focus on enforcement rather than facilitation,” said Jaymeen Trivedi, chairperson of ICSI’s Ahmedabad branch.
