The Companies Compliance Facilitation Scheme, 2026 provides an opportunity for inactive or defunct companies to opt for dormancy or closure through strike-off mode by paying lesser fees.
The Ministry of Corporate Affairs (MCA) has officially extended the Companies Compliance Facilitation Scheme, 2026 (CCFS‑2026) until August 31, 2026. Originally slated to close on July 15, 2026, this extension provides companies with an additional 45 days to regularize their statutory filings with the Registrar of Companies (ROC).
Announced through General Circular No. 02/2026, the extension reflects MCA’s recognition of the practical challenges faced by businesses in completing compliance within the earlier deadline.
Key Highlights of the Extended Scheme
Extended Deadline: Companies now have until August 31, 2026 to file pending returns and documents.
Reduced Penalties Continue: The benefit of paying only 10% of the standard additional fees remains intact.
Wide Coverage: Applicable to annual returns, financial statements, and event‑based filings under the Companies Act.
Regulatory Protection: Defaults regularized under CCFS‑2026 will not attract prosecution or heavy penalties.
Why the Extension Matters
Operational Breathing Space: Many companies struggled to collate documents by July 15; the extension ensures smoother compliance.
Investor Confidence: By encouraging transparency, the scheme strengthens governance and credibility.
Ease of Doing Business: Reduced costs and extended timelines align with India’s broader corporate reform agenda.
Practical Implications for Businesses
Startups & SMEs: Extra time to catch up on filings without straining resources.
Large Enterprises: Opportunity to clean compliance records before audits or fundraising.
Dormant Companies: A final chance to revive or close operations in a compliant manner.
Action Points for Companies
Review Pending Filings against ROC records.
Prioritize Annual Returns & Financials for immediate submission.
Leverage Reduced Fees by filing within the extended window.
Establish Internal Compliance Systems to avoid future defaults.
Event‑based Filings: MGT‑14 (resolutions and agreements)
Foreign Company Filings: FC‑3, FC‑4
Legacy Forms: 20B, 21A, 23AC, 23ACA, 23AC‑XBRL, 23ACA‑XBRL, Form 66, Form 23B
Special Provisions
Dormant Status (MSC‑1): Filing at 50% of normal fee.
Strike Off (STK‑2): Filing at 25% of fee (₹2,500 instead of ₹10,000).
Immunity: Defaults cured under CCFS‑2026 will not attract prosecution or penalties.
Key Takeaway
The extension till August 31, 2026 is a comprehensive compliance relief, not restricted to annual filings. Companies should use this window to clear all pending forms—whether routine (AOC‑4, MGT‑7) or event‑based (ADT‑1, MGT‑14)—to avoid future enforcement action.
Conclusion
The extension of CCFS‑2026 till August 31, 2026 is more than a procedural relief—it is a strategic opportunity. Companies should seize this window to reset their compliance journey, safeguard against penalties, and reinforce their governance standards.
For businesses, the message is clear: use this extended timeline wisely to get compliant, stay transparent, and build trust.
The Ministry of Corporate Affairs (MCA) has launched the MCA V3 portal, a significant upgrade over the earlier V2 system. This transition marks a new era in corporate compliance, offering improved efficiency, transparency, and user experience for companies, professionals, and regulators.
Here are the key highlights that you need to know about the newly launched V3 portal and how it impacts your business.
The V3 portal is designed to promote “Ease of Doing Business” through automation and real-time data integration.
Key Improvements Over MCA V2
Feature
MCA V2 Portal
MCA V3 Portal
Forms
Static PDF-based filings
Web-based forms with dynamic fields and real-time validations
Login
Password-based
Email + OTP login for enhanced security
Filing Process
Manual attachments, repetitive data entry
Pre-filled fields, linked filings, and conditional STP (Straight Through Processing)
Dashboard
Basic interface
“My Application” dashboard for tracking drafts, submissions, and status
Validation
Errors detected post-submission
Real-time validation before submission, reducing rejections
Utility Mode
Excel/PDF uploads
Web forms with integrated Excel utility
Transition Support
Limited guidance
Detailed FAQs and guides for professionals
Benefits for Stakeholders
Companies & Professionals: Reduced compliance burden through automation and pre-filled data.
Regulators: Improved accuracy and transparency with real-time validations.
Public Users: Enhanced accessibility and security with OTP-based login.
Improvements at a glance:
The MCA V3 portal is not just an upgrade—it is a transformation of India’s corporate compliance ecosystem. By introducing web-based forms, real-time validations, and a modern dashboard, MCA has significantly improved efficiency, accuracy, and transparency. For professionals and companies, mastering V3 is now essential to ensure smooth compliance in the digital era.
Conclusions
The digital transformation of company registration through MCA V3, combined with the surge in new company & LLP formation, marks one of the most important recent trends in India’s corporate regulatory space. It reflects both policy reform and entrepreneurial energy.
For anyone looking to start a business, this is a good time — the system is getting more entrepreneur-friendly, incorporating healthy corporate practices and more conducive for new ventures.
The MCA V3 portal is a ambitious step toward a paperless, transparent corporate environment. While the learning curve and initial glitches are challenging, the long-term benefits of real-time processing and integrated compliance would save businesses significant time.
In a significant move to ease compliance pressure, the Ministry of Corporate Affairs (MCA) has extended the deadline for companies to file their financial statements and annual returns for the financial year (FY) 2024–25 without additional fees until December 31, 2025, according to General Circular No. 06/2025 issued on October 17, 2025.
The extension was granted due to the deployment of revised e-forms on the MCA-21 Version 3 portal and requests from stakeholders.
The new deadline for filing financial statements and annual returns is December 31, 2025, with only normal fees applicable during this period.
This extension does not alter the statutory deadline for holding Annual General Meetings (AGMs). Companies should hold their AGM within the statutory deadline and file forms before December 31, 2025, to avoid extra fees. For more details, refer to the General Circular No. 06/2025.
The circular provides relaxation for the filing of following forms:
Form AOC-4 – Filing of financial statements
Form AOC-4 (CFS) – Consolidated financial statements
Form AOC-4 XBRL / Non-XBRL – For companies required to file in structured formats
Form MGT-7 / MGT-7A – Annual return for companies and small companies/OPCs respectively
Companies must take care that the ROC forms/returns are filed correctly and within the given date. Not adhering to the instructions can lead them to deal with various penalty charges and legal consequences.
Therefore, it is recommended that companies reach out to professionals to assist them in ensuring compliance with the filing needs.
The Ministry of Corporate Affairs has issued General Circular No. 06/2025 dated October 17, 2025, allowing companies to file their financial statements and annual returns for FY 2024–25 using the newly revised e-Forms (MGT-7, MGT-7A, AOC-4 series) on the MCA-21 Version 3 portal without additional fees until 31st December 2025.
This relaxation aims to help companies adapt to the new forms but does not extend statutory deadlines for holding AGMs under the Companies Act, 2013. Companies failing to meet statutory timelines remain liable for legal action, and filings made after this period will attract normal and additional fees as per applicable rules.
The Ministry has revised the e-Forms MGT-7, MGT-7A, AOC-4, AOC-4 CFS, AOC-4 NBFC (Ind AS), AOC-4 CFS NBFC (Ind AS), AOC-4 (XBRL) for annual filings, which were deployed on the MCA-21 Version 3 portal recently.
In view of the deployment of the new e-Forms, and considering that companies may require some time to get familiarized with the filing process, and keeping in view the requests received from various stakeholders, it has been decided that companies will be allowed to complete their annual filings pertaining to FY 2024-25 till 31st December, 2025 without payment of additional fees.
However, it is hereby clarified that this General Circular shall not be construed as conferring any extension of statutory time for holding of AGMs by the companies under the Companies Act, 2013 (the Act) and the companies which have not adhered to the relevant statutory timelines shall continue to be liable to legal action under the appropriate provisions of the Act.
Any filings made subsequent to the currency of this General Circular would attract payment of all fees, including additional fees, as provided in the Companies (Registration Offices and Fees) Rules, 2014, from the date when such filings were actually due under the Act.
This is issued with the approval of the Competent Authority.
MCA extends DIR-3 KYC filing deadline to October 15, 2025: A sigh of relief for directors
The Ministry of Corporate Affairs (MCA) has announced a much-awaited extension for filing the DIR-3 KYC and DIR-3 KYC-WEB forms without additional fees. This provides directors with more time to complete their annual compliance requirements.
Key takeaways from the extension
Revised Due Date: The deadline has been extended from the usual September 30, 2025, to October 15, 2025.
No Additional Fee: The extension allows DIN holders to file their KYC details without incurring the standard ₹5,000 late filing penalty.
Applicability: The extension covers both e-form DIR-3 KYC (for first-time filers or those updating details) and the web-based DIR-3 KYC-WEB (for subsequent annual filings with no changes).
Reason for Extension: The MCA granted the extension after receiving requests from stakeholders to provide more time for compliance.
Who needs to file?
The DIR-3 KYC filing is a mandatory annual compliance requirement for every individual who holds a Director Identification Number (DIN). This includes:
Every DIN holder, regardless of whether they are currently serving as a director in a company or a designated partner in an LLP.
Even individuals whose DIN has been deactivated for non-compliance are required to file the form to reactivate it.
The importance of timely filing
Filing your DIR-3 KYC is a simple yet crucial step to ensure your director status remains active and compliant. Here’s why you should use this extension wisely:
Avoid DIN Deactivation: Failure to file the form by the new deadline will result in the deactivation of your DIN.
Prevent Penalties: If you miss the extended deadline, you will have to pay a steep penalty of ₹5,000 to get your DIN reactivated.
Maintain Corporate Governance: Timely compliance ensures that the MCA maintains accurate and updated records of directors, which is vital for corporate transparency and governance.
What you need to do
Gather Information: Ensure you have your personal mobile number and email ID ready for OTP verification.
Access the Portal: Log in to the MCA V3 portal to initiate the filing process.
Choose the Correct Form: Select the appropriate form based on your filing history: e-form DIR-3 KYC (for first-timers or updates) or web-form DIR-3 KYC-WEB (for subsequent filings with no changes).
Complete the Process: Verify your details and submit the form before October 15, 2025, to avoid any late fees.
Final thoughts
This extension is a welcome move by the MCA, especially for those who faced challenges during the initial filing period. It provides a valuable opportunity to complete the necessary compliance without the burden of additional fees. Directors are advised to take advantage of this extension and file their DIR-3 KYC forms at the earliest to ensure a smooth and penalty-free compliance process.
The dawn of a New Era: MCA’s V3 Portal phases out V2 for enhanced Corporate Compliance
The Ministry of Corporate Affairs (MCA) has ushered in a significant digital transformation, completing the phased migration of its services from the older V2 portal to the advanced MCA21 V3 portal. This move marks a pivotal moment for businesses, professionals, and stakeholders involved in corporate governance in India, promising a more streamlined, efficient, and user-friendly experience.
A Gradual but Definitive Shift
For quite some time, the MCA has been strategically transitioning its functionalities. While LLP-related filings were among the first to move to V3, the final and most comprehensive set of 38 company e-forms, including crucial annual filing forms like AOC-4 and MGT-7, and various audit/cost audit forms, went live on 30th May, 2025. This launch to be effective (from July 14, 2025 from 12.00 a.m) renders the V2 portal obsolete for company filings, signifying the completion of a major technological overhaul.
Why the Shift? The Promise of V3
The move to V3 is not merely an aesthetic upgrade; it’s a fundamental re-engineering of how corporate compliance is managed. Here’s what makes V3 a game-changer:
Online Form Submission: A major departure from V2, V3 allows for direct online submission of forms, eliminating the need to download, fill, and then upload. This significantly reduces manual effort and potential errors.
Enhanced User Experience: V3 boasts a more intuitive and responsive web design, making navigation and filing more user-friendly. Features like e-Adjudication, e-Consultation, and a Learning Management System are integrated for a holistic experience.
Real-time Processing and Tracking: Stakeholders can now track the status of their filings in real-time, providing greater transparency and allowing for timely corrective actions if needed.
Streamlined E-payments: The payment process has been further refined for greater ease and security. Notably, the “Pay Later” option on V2 has been discontinued, emphasizing online payment modes.
Improved Data Integrity and Compliance Management: V3 incorporates advanced field-level validations and aims to minimize errors during filing. The Compliance Management System (CMS) will assist MCA in identifying non-compliant entities and issuing e-notices, strengthening the regulatory framework.
Single User ID for Multiple Roles: Professionals (CA/CS/CMA) who are also directors can now manage their various roles through a single user ID, simplifying their interactions with the portal.
Increased Accessibility and Transparency: The portal aims to improve the accessibility of public documents and offers better resolution of public grievances.
Key Dates and Important Actions for Stakeholders
To ensure a smooth transition, the MCA had laid out a clear timeline and advised stakeholders on crucial actions:
V2 Filing Disabled: Company e-filings on the V2 portal were disabled from June 18, 2025. It was critical for all Service Request Numbers (SRNs) to be clear of “pending payment” or “re-submission” status before this date.
Offline Payments Discontinued: The “Pay Later” option in V2 was stopped from June 8, 2025, mandating online payments for all filings.
V3 Portal Downtime: A scheduled downtime for the V3 portal occurred from July 9 to July 13, 2025, to facilitate the final rollout of the new forms.
User ID and DSC Updates: Stakeholders were strongly advised to create a new user ID or upgrade/merge their existing V2 ID to a “Business User” category in V3 and associate their Digital Signature Certificate (DSC) without fail.
SRN Updates: SRNs requiring updates regarding investor or subsidiary details needed to be completed by June 17, 2025, to avoid being marked as “NTBR” (Not to Be Registered).
Navigating the new landscape: What to expect
While V3 promises significant improvements, like any large-scale system migration, initial teething troubles are not uncommon. Stakeholders should be prepared for:
Familiarization with New Interface: It will take some time for users to get accustomed to the new layout and functionalities of V3.
Technical Glitches: While the MCA has taken steps to ensure a smooth transition, occasional technical issues related to login, DSC association, or form submission might arise.
Proactive Engagement: Users are encouraged to utilize the FAQs and support resources provided by MCA and professional bodies to resolve any issues promptly.
The phasing out of the V2 portal and the full embrace of V3 signify the MCA’s commitment to digital governance and ease of doing business in India. This advanced platform is set to enhance transparency, streamline compliance processes, and contribute to a more robust corporate ecosystem. Embracing this new era with readiness and adaptability will be key for all stakeholders.
In a significant move, the Ministry of Corporate Affairs (MCA) has extended the deadline for mandatory dematerialization of securities for certain private companies until June 30, 2025. This extension, announced through a notification dated February 12, 2025, grants more time for compliance under the Companies (Prospectus and Allotment of Securities) Amendment Rules, 2025, which modifies the existing Companies (Prospectus and Allotment of Securities) Rules, 2014
The Ministry of Corporate Affairs (MCA) has officially extended the deadline for the mandatory dematerialization of securities for private companies.
According to the latest notification issued on February 12, 2025, the new compliance deadline has been pushed to June 30, 2025.
This amendment revises the Companies (Prospectus and Allotment of Securities) Rules, 2014, specifically Rule 9B, which mandates dematerialization for specific categories of private companies.
The official Notification is attached here for reference:
Key Highlights of the MCA Notification
Extension until June 30, 2025
The deadline for compliance with Rule 9B (2) has been extended from March 31, 2023, to June 30, 2025.
This provides private companies (other than small and producer companies) with more time to complete the dematerialisation of securities and obtain ISIN (International Securities Identification Number).
Applicability of the Rule
All private companies, excluding small companies and producer companies, are required to comply.
Companies that intend to issue new shares, transfer shares, or make any alterations in their capital structure must do so only in dematerialised form.
The objective of the Amendment
To ease the transition for private companies that have not yet complied.
To ensure greater market transparency and alignment with regulatory frameworks for public companies.
To facilitate smooth investor participation and digital securities transactions.
What is the Dematerialization of Shares?
Dematerialization is the process of converting physical share certificates and other securities into an electronic format, eliminating the need for paper-based documents. Once dematerialized, these securities are held in a demat account, which functions like a digital repository for financial instruments.
A depository is an entity that holds securities in an electronic form and facilitates seamless transactions. It ensures security, transparency, and ease of trading. In India, depositories are governed under the Depositories Act of 1996 and regulated by the Securities and Exchange Board of India (SEBI).
The two SEBI-registered depositories in India are:
NSDL (National Securities Depository Ltd.) – Primarily linked with the National Stock Exchange (NSE).
CDSL (Central Depository Services (India) Ltd.) – Associated with the Bombay Stock Exchange (BSE).
Rule 9B: Mandatory Dematerialization of Securities for Private Companies
In October 2023, the Ministry of Corporate Affairs (MCA) introduced Rule 9B under the Companies (Prospectus and Allotment of Securities) Rules, 2014. This regulation made it mandatory for certain private companies to dematerialize their securities, aligning them with corporate governance standards applicable to public companies.
Applicability of Dematerialization of Shares
The dematerialization of shares applies to various entities within the securities market, ensuring transparency, security, and ease of transactions.
Public Companies
All public companies in India are mandated to hold and transact their securities in dematerialized form.
Private Limited Companies
All private limited companies, except those categorized as small companies, must comply with dematerialization regulations.
Holding and Subsidiary Companies
Any private limited company that is a holding company or a subsidiary of another corporate entity must dematerialise its shares.
This applies even if the company qualifies as a small company under financial thresholds.
Small Companies – Exception to Dematerialization
A small company is defined as a private limited company that meets the following financial criteria:
Paid-up capital: INR4 crore (INR 40,000,000) or less
Turnover: INR40 crores (INR 400,000,000) or less in the preceding financial year
Small companies are exempt from mandatory dematerialisation unless they are:
A holding company of another entity
A subsidiary company of another corporate body
In these cases, they must comply with dematerialisation requirements, irrespective of their financial position.
Last date for Dematerialization of Physical Shares
Considering the challenges faced by companies in executing the dematerialisation process, the Ministry of Corporate Affairs (MCA) has extended the compliance deadline. The new last date for mandatory dematerialisation of shares is June 30, 2025, revised from the earlier deadline of September 30, 2024.
Implications of the Deadline Extension for Private Companies
For Non-Compliant Private Companies: Companies that have not obtained their ISIN or completed dematerialisation now have extra time to comply. They must coordinate with depositories (NSDL/CDSL), registrar & transfer agents (RTAs), and professionals to initiate the dematerialisation process.
For Companies already in Compliance: Those who have already obtained their ISIN and dematerialised securities will not be affected. However, they should continue ensuring that any new share issuance or transfer occurs only in dematerialised form.
How to Convert Physical Shares into Demat?
Converting physical share certificates into electronic form is a simple and efficient process. Below is a step-by-step guide to help complete the dematerialization process:
Step 1: Open a Demat Account
To begin, you need to open a Demat account with a Depository Participant (DP), such as a bank, stockbroker, or financial institution. This account will hold your shares in electronic form.
You must fill out an account opening form and provide essential details, including:
Bank account details (Account number, IFSC code, Bank name, and Branch address)
Identity and address proof
PAN card
Once your Demat account is successfully set up, you can initiate the dematerialization process.
Step 2: Submit a Demat Request Form (DRF)
Obtain a Demat Request Form (DRF) from your DP, complete it accurately, and sign it. Ensure that the names and signatures on the form match those on the share certificates and the company’s records.
Step 3: Verification and Processing
After submission, the DP will verify your details and issue a Dematerialization Request Number (DRN) to track the status of your request.
Step 4: Forwarding to Registrar and Share Transfer Agent (RTA)
Your DP will forward the dematerialization request along with your physical share certificates to the respective Registrar and Share Transfer Agent (RTA) of the issuing company.
Step 5: Conversion to Electronic Form
Once the RTA verifies and approves the request, your physical share certificates will be cancelled and converted into electronic form to prevent misuse.
Step 6: Credit to Your Demat Account
The dematerialized shares are then credited to your Demat account, allowing you to sell, transfer, or pledge them as needed.
Penalties for Non-Compliance with Dematerialization Requirements
Failure to comply with Rule 9B of the Companies Act, 2013, can result in serious consequences for private companies, including:
Restrictions on Securities Transactions: Companies failing to comply will be barred from issuing or allotting any securities, including those related to bonus issues and buybacks.
Limitations for Shareholders: Shareholders holding physical shares will be restricted from selling or transferring their securities. They may also lose eligibility for rights issues and dividend benefits.
Monetary Penalties for Companies
Penalties for Company Officers: Officers in default may face penalties of up to INR 50,000 for non-compliance.
Initial penalty: INR 10,000
Continuing penalty: INR 1,000 per day until compliance is met, up to a maximum of INR 200,000.
Conclusion
The extension of the dematerialisation deadline to June 30, 2025, provides much-needed relief for private companies, allowing them additional time to comply with Rule 9B of the Companies Act, 2013. Companies should take advantage of this extension to complete the demat process, obtain their ISIN, and ensure compliance to avoid penalties and restrictions on share transactions.
Frequently Asked Questions (FAQs)
What is the new deadline for the mandatory dematerialisation of private company shares?
The Ministry of Corporate Affairs (MCA) has extended the compliance deadline to June 30, 2025, from the earlier date of September 30, 2024.
Which companies are required to dematerialise their shares?
All private limited companies, except those categorised as small companies, must comply with the dematerialisation requirements under Rule 9B of the Companies Act, 2013. Additionally, holding and subsidiary companies must also dematerialise their shares, regardless of their size.
Are small companies exempt from the dematerialisation requirement?
Yes, small companies (those with a paid-up capital of INR4 crore or less and turnover of INR40 crore or less) are exempt. However, if they are a holding or subsidiary company, they must comply with the dematerialisation mandate.
What happens if a company does not complete the dematerialisation process by the deadline?
Non-compliant companies may face:
Restrictions on issuing or allotting securities, including bonus shares and buybacks.
Limitations for shareholders, preventing them from selling or transferring physical shares.
Monetary fines of INR 10,000, with an additional INR 1,000 per day until compliance is met (up to INR 2,00,000).
Penalties for company officers, with fines up to INR 50,000.
How can physical shares be converted into dematerialised form?
The dematerialisation process involves:
Opening a Demat account with a Depository Participant (DP).
Submitting a Demat Request Form (DRF) along with physical share certificates.
Verification and processing by the DP and Registrar & Share Transfer Agent (RTA).
Conversion to electronic format and crediting to your Demat account.
Which depositories handle dematerialisation in India?
The two SEBI-registered depositories in India are:
NSDL (National Securities Depository Ltd.)
CDSL (Central Depository Services (India) Ltd.)
Is dematerialisation required for new share issuances and transfers?
Yes, as per Rule 9B, all new share issuances and transfers must be conducted in dematerialised form. Companies that have already completed the demat process must ensure ongoing compliance for any future transactions.
How to get help with the dematerialisation process?
You can get help from professional bodies that provide end-to-end assistance for companies looking to dematerialise their shares through NSDL/CDSL. They help in documentation, coordination with depositories, and compliance filing to ensure a seamless transition to electronic shareholding.
