To provide relief and encourage voluntary compliance, the MCA has introduced the MCA Amnesty Scheme 2026 — a one-time opportunity for defaulting companies and LLPs to regularize past non-compliances at reduced cost and with protection from harsh consequences.
This detailed guide explains:
- What the MCA Amnesty Scheme 2026 is
- Reliefs provided under the scheme
- Who is eligible
- Forms covered
- Benefits for directors
- Procedure to avail the scheme
- Risks of ignoring it
- Practical examples
- Strategic advice for business owners
If you are a company director, LLP partner, consultant, or compliance professional, this article will help you understand how to use the scheme effectively.
Why Amnesty Schemes Are Introduced
India has lakhs of registered companies and LLPs. A significant portion of them:
- Have not filed annual returns for multiple years
- Have accumulated heavy additional fees
- Are inactive but not formally closed
- Are at risk of strike-off
- Have directors facing disqualification
When compliance costs and penalties become too high, businesses often avoid regularizing filings altogether. This leads to:
- Non-transparent corporate records
- Regulatory backlog
- Increased litigation
- Director disqualification cases
To resolve such situations, the MCA periodically introduces amnesty or compliance relaxation schemes to allow businesses to clean up defaults and return to compliance.
The MCA Amnesty Scheme 2026 is one such major relief initiative.
What Is MCA Amnesty Scheme 2026?
The MCA Amnesty Scheme 2026 is a temporary compliance window allowing defaulting companies and LLPs to file pending statutory documents with reduced additional fees and obtain relief from certain penalties and prosecution proceedings.
The objective is simple:
Encourage voluntary compliance, reduce litigation, and improve corporate governance records.
Key Reliefs Provided Under MCA Amnesty Scheme 2026
The biggest question businesses ask is: What relief do we actually get?
Here are the major reliefs under the scheme:
1. Reduction in Additional Filing Fees
Normally, delayed filings attract heavy additional fees calculated per day of delay. In many cases, this amount exceeds the original filing fee by several times.
Under the scheme:
- Significant reduction in additional fees
- Capped penalties for certain forms
- Fixed or concessional additional charges
This makes compliance financially feasible.
2. Waiver of Certain Penalties
Companies that failed to file annual returns or financial statements may face adjudication penalties.
Under the scheme:
- Relief from harsh penalty calculations
- Waiver or reduction of accumulated penalties in eligible cases
This provides financial breathing space.
3. Relief from Prosecution for Specific Defaults
Non-filing can lead to prosecution proceedings.
The scheme provides:
- Immunity from prosecution for specified filing-related defaults
- Opportunity to withdraw pending cases (where applicable and permitted)
This is a major legal relief.
4. Opportunity to Restore Struck-Off Companies
Companies struck off under Section 248 can apply for restoration through proper process.
The scheme may:
- Facilitate smoother compliance filings post-restoration
- Reduce burden of accumulated filing penalties
This helps revive dormant businesses.
5. Relief for Directors
Non-compliance can result in:
- Director disqualification
- DIN deactivation
Under the scheme:
- Directors may regularize defaults
- Avoid future disqualification risks (subject to eligibility)
This protects professional reputation.
Who Can Avail MCA Amnesty Scheme 2026?
The scheme generally applies to:
- Private Limited Companies
- Public Limited Companies
- One Person Companies (OPCs)
- LLPs
- Inactive companies
- Defaulting companies with pending ROC filings
However, companies under serious fraud investigations, insolvency proceedings, or specific legal restrictions may not be eligible.
Each case must be reviewed individually.
Common Forms Covered Under the Scheme
Though exact coverage depends on scheme notification, generally included forms may be:
For Companies:
- AOC-4 (Financial Statements)
- MGT-7 / MGT-7A (Annual Return)
- ADT-1 (Auditor Appointment)
- DIR-3 KYC
- Event-based forms pending filing
For LLPs:
- Form 8 (Statement of Account & Solvency)
- Form 11 (Annual Return)
Filing these forms clears compliance backlog.
Why Companies Become Non-Compliant
Understanding the root cause helps prevent future issues.
Common reasons include:
- Business stopped operations but not formally closed
- Dispute between directors
- Lack of awareness
- Cash flow problems
- Auditor resignation
- Change in consultants
- Ignoring small delays until they become big penalties
Over time, small delays snowball into large liabilities.
The Amnesty Scheme 2026 aims to reverse that trend.
Step-by-Step Process to Avail the Scheme
Here’s how businesses can regularize under the scheme:
Step 1: Compliance Status Review
Check:
- Pending forms
- Years of default
- Additional fees accumulated
- Director status
- DIN status
Step 2: Document Preparation
Prepare:
- Financial statements
- Board reports
- Auditor reports
- Annual return details
- Partner resolutions (for LLPs)
Step 3: File Pending Forms
Upload all overdue forms on MCA portal within the scheme window.
Step 4: Pay Reduced Fees
Pay prescribed concessional fees under the scheme.
Step 5: Obtain Acknowledgment
Keep SRN acknowledgments and challans for records.
Step 6: Monitor Director Status
Ensure DIN remains active and no disqualification triggers remain.
Example Case Study
Case 1: Private Limited Company with 3 Years Pending Filing
- AOC-4 and MGT-7 not filed for FY 2022, 2023, 2024
- Additional fees accumulated heavily
- Director worried about disqualification
Under Amnesty Scheme 2026:
- Files all pending returns
- Pays reduced additional fees
- Avoids prosecution
- Restores compliance status
Result: Clean corporate record.
Case 2: Inactive LLP
- LLP stopped operations 4 years ago
- No annual returns filed
- Huge penalties accumulated
Under the scheme:
- Files Form 8 and Form 11
- Pays reduced penalties
- Either continues business or proceeds with formal closure
Result: Legal clarity achieved.
Financial Impact of Ignoring the Scheme
If businesses ignore the scheme:
- Penalties continue to accumulate
- Director disqualification risk increases
- Company may be struck off
- Difficulty in bank loan approval
- Issues in raising investment
- Legal notices from ROC
Long-term cost becomes much higher than compliance cost.
Impact on MSME Business Owners
For MSME promoters, compliance delays are common due to:
- Focus on operations
- Limited professional guidance
- Cost concerns
However, non-compliance affects:
- Government tenders
- Loan approvals
- Investor trust
- Credit rating
The scheme provides a cost-effective reset opportunity.
For MSMEs, this is not just relief — it is a strategic clean-up.
Strategic Advantages of Availing the Scheme Early
Instead of waiting till last date:
- Avoid portal congestion
- Get professional review
- Plan finances
- Correct historical errors
- Avoid panic filings
Early compliance ensures smoother processing.
Difference Between Regular Filing vs Amnesty Filing
| Aspect | Regular Filing | Under Amnesty Scheme |
|---|---|---|
| Additional Fees | Heavy per day penalty | Reduced or capped |
| Prosecution Risk | High | Immunity in eligible cases |
| Director Risk | Disqualification possible | Relief opportunity |
| Financial Burden | Significant | Moderated |
Frequently Asked Questions (FAQs)
1. Is the scheme automatic?
No. Companies must file pending documents within scheme period.
2. Does it apply to all penalties?
Only specified defaults are covered.
3. Can struck-off companies benefit?
Yes, after restoration process.
4. Is professional certification required?
Yes, certain forms require CA/CS certification.
5. What happens after scheme ends?
Regular penalty structure resumes.
Compliance After Regularization
Once filings are cleared:
- Maintain annual compliance calendar
- Appoint qualified professionals
- Track filing deadlines
- Keep financial statements updated
- Conduct regular board meetings
Avoid falling back into default.
Long-Term Governance Benefits
Regular compliance improves:
- Corporate credibility
- Investor confidence
- Bank relationships
- Business valuation
- Legal protection
Compliance is not just legal necessity — it is business strategy.
Professional Recommendation
Before filing:
- Conduct full compliance audit
- Estimate total liability
- Check director status
- Review past financials
- Plan restoration (if required)
Proper planning prevents future complications.
Final Thoughts
The MCA Amnesty Scheme 2026 is a significant relief measure for defaulting companies and LLPs. It offers:
- Reduced additional fees
- Waiver or reduction of penalties
- Relief from prosecution
- Director protection in eligible cases
- Opportunity to restore compliance
For businesses that have ignored ROC filings for years, this scheme is not merely a relaxation — it is a second chance.
However, such schemes are time-bound. Once the window closes, strict enforcement resumes.
If your company or LLP has pending filings, now is the time to act.
Regularize. Comply. Move forward confidently.