Close Your Company Under CCFS-2026: STK-2 at 25% Fee

If your Private Limited Company or OPC has stopped operating, the Companies Compliance Facilitation Scheme, 2026 (CCFS-2026) is the cheapest window you will get to close it legally. During the scheme, you can file Form STK-2 for strike-off at just 25% of the normal filing fee, which is ₹2,500 instead of ₹10,000 for a Private Limited Company, and clear any pending annual filings by paying only 10% of the accumulated late fees, a 90 percent reduction. The scheme was introduced by MCA General Circular No. 01/2026 and, after an extension via General Circular No. 03/2026 dated 8 July 2026, now runs until 31 August 2026. After that date, full fees return and the Registrar begins strike-off and penalty action on its own terms. This blog explains exactly how to use CCFS-2026 to close your company, who is eligible, the step-by-step STK-2 process, the exact cost, and the deadlines you cannot miss.

What is CCFS-2026 and Why Does It Matter for Closing a Company?

CCFS-2026 (Companies Compliance Facilitation Scheme, 2026) is a one-time MCA relief scheme that lets companies clear pending statutory filings and exit at sharply reduced cost. It was issued under Section 460 read with Section 403 of the Companies Act, 2013 through General Circular No. 01/2026 dated 24 February 2026.

For a business owner who wants to close a defunct company, the scheme matters because closure normally carries two heavy costs: the STK-2 government fee, and the accumulated late fees on every annual return the company failed to file. Since 1 July 2018, those late fees run at ₹100 per day per form with no upper limit, so a company with three or four years of pending filings can owe well over a lakh per form in late fees alone. CCFS-2026 cuts both of these at once.

Why MCA Launched CCFS-2026

India now has more than 20 lakh active companies on the MCA register, many of them MSMEs, OPCs, and new-age startups that fell behind on annual compliance. A large share are dormant or defunct but still technically on the register, accumulating penalties. MCA received representations from stakeholders seeking fee relief, and CCFS-2026 is the response: a clean-slate window to either regularise filings, go dormant, or close permanently.

How Much Can You Save Closing a Company Under CCFS-2026?

The savings come from two separate reliefs stacked together: the reduced STK-2 fee and the 90 percent cut on pending annual filing late fees. Here is how the closure cost compares with and without the scheme.

What Are the Three Options Under CCFS-2026?

CCFS-2026 is not only a closure scheme. It gives every eligible company three distinct paths, and the right one depends on whether you want to keep the company, pause it, or shut it down permanently.

If your company is genuinely finished, Option 3, strike-off through STK-2, is the route. If you might revive the business within a few years, Dormant status under Section 455 keeps the company alive on the register with minimal compliance at half the normal fee. This blog focuses on the closure route.

Who Can Close a Company Under CCFS-2026?

All companies are eligible to file the relevant forms under CCFS-2026 except five excluded categories. Confirm your company does not fall into any of these before you start.

Five Excluded Categories

• Companies against which a final notice for striking off under Section 248 has already been initiated by the Registrar
• Companies that have already filed an application for striking off their name
• Companies that have already applied for Dormant status under Section 455 before the scheme began
• Companies dissolved under a scheme of amalgamation
• Vanishing companies

Conditions for Voluntary Strike-Off

Beyond scheme eligibility, your company must satisfy the standard conditions for voluntary strike-off under Section 248(2):

• The company has not carried on business for the two preceding financial years, or never commenced business after incorporation, or did not file INC-20A (commencement of business declaration)
• The company has no outstanding liabilities, no unpaid loans, taxes, salaries, or vendor dues
• The company has no assets to be distributed
• All company bank accounts are closed
• There are no pending legal proceedings or regulatory investigations
• At least 75% of members by paid-up capital consent to the strike-off

How to Close a Company Under CCFS-2026 Step by Step

The closure process combines clearing your compliance backlog under the scheme with filing the strike-off application. Follow these steps in sequence to close before 31 August 2026.

1. Check eligibility. Confirm your company is not in any of the five excluded categories, and that it meets the voluntary strike-off conditions (nil assets, nil liabilities, two years inactive or never commenced).
2. Pull your MCA filing history. Identify every pending form: AOC-4, MGT-7, MGT-7A, ADT-1, and any older 1956 Act forms.
3. Clear pending annual filings under CCFS-2026. File all overdue annual returns and financial statements for the years in which the company had business, paying normal fees plus only 10% of the accumulated additional fees.
4. Cancel GST and close bank accounts. File GSTR-10 to cancel GST registration, obtain the cancellation order, settle all dues, and close every company bank account. Collect the bank closure letter.
5. Pass board and shareholder resolutions. Hold a board meeting to approve the strike-off, then pass a special resolution or obtain 75% member consent at an EGM. File Form MGT-14 within 30 days if a special resolution is passed and INC-20A was filed.
6. Prepare the STK-2 attachments. Indemnity Bond (Form STK-3) and Affidavit (Form STK-4) from every director, a statement of accounts (Form STK-8) certified by a compliance professional and not older than 30 days, the special resolution or consent, and the latest income tax return acknowledgement.
7. File Form STK-2 with C-PACE. Submit the application on the MCA V3 portal paying just 25% of the applicable fee under CCFS-2026. Note the SRN for tracking.
8. Respond to the public notice. C-PACE scrutinises the application and issues a public notice (Form STK-5 or STK-6) with a 30-day objection window. If no objections arise, the ROC issues the final strike-off order (Form STK-7) and the company is dissolved.

What is C-PACE and How Does It Affect Your Strike-Off?

C-PACE (Centre for Processing Accelerated Corporate Exit) is the centralised MCA authority that now handles all Form STK-2 strike-off applications across India, replacing the regional ROCs for this purpose. It was set up to make company closure faster and more uniform.

What C-PACE changed for anyone closing a company:

• Centralised processing: all STK-2 applications go to C-PACE, not your regional ROC
• Faster exits: clean applications typically complete in 40 to 90 days
• Stricter scrutiny: C-PACE closely checks pending filings, liabilities, and GST status, so incomplete or non-compliant applications are rejected

The practical takeaway is that a clean, complete application matters more than ever. Clearing your filing backlog under CCFS-2026 first, cancelling GST, and closing bank accounts before you file STK-2 is what gets the application through C-PACE without rejection.

Strike-Off vs Winding Up vs Dormant: Which Route Fits?

Closure is not one process. The right mechanism depends on your company's assets, liabilities, and whether you might revive it later.

For most small and medium companies that have simply stopped trading with no debts and no assets, strike-off through STK-2 is the fastest and cheapest route, and CCFS-2026 makes it cheaper still. If you might restart the business, weigh dormant status or conversion before committing to permanent closure.

What Happens If You Miss the 31 August 2026 Deadline?

The scheme is a closing window, not a permanent option. MCA General Circular No. 01/2026 is explicit that once the scheme ends, the Registrar will take action against companies that did not use it.

• Adjudication notices: the ROC may issue penalty notices under Section 454 for defaults under Sections 92 and 137
• Suo motu strike-off: the ROC may initiate its own strike-off under Section 248 against continuously defaulting companies
• Director disqualification: 3 consecutive years of non-filing triggers disqualification under Section 164(2), barring the director from every company for 5 years
• Full late fees resume: the ₹100 per day additional fee returns in full, with no upper limit and no scheme discount

Documents Required to Close a Company Under CCFS-2026

Assemble these before filing to avoid C-PACE rejection. Missing or stale documents are the most common cause of delay.

Closing an OPC or Section 8 Company Under CCFS-2026

The STK-2 process applies to all companies registered under the Companies Act, 2013, but a few entity-specific points matter.

One Person Company (OPC)

An OPC closes through the same STK-2 strike-off route. Since an OPC has a single member who is usually also the sole director, that person's written consent recorded in the board minutes is enough. The OPC nominee does not need to consent. This makes OPC closure procedurally simpler than a multi-shareholder Private Limited Company, where 75% member consent is required.

Private Limited Company

A Private Limited Company requires the consent of at least 75% of members by paid-up capital. For a typical two-member company, both members must consent. If one member dissents, voluntary strike-off is not available and the company must explore winding up instead.

Section 8 Company

A Section 8 Company carries extra steps. In practice it must first be converted into a normal Private Limited Company before it can be closed through the standard strike-off route. Prior approval from the Regional Director is required, the non-profit licence must be surrendered, and any remaining assets must be transferred to another Section 8 Company with similar objects. This makes Section 8 closure the most involved of the entity types, so plan for a longer timeline.

Conclusion

CCFS-2026 is the most cost-effective window available to close an inactive Private Limited Company or OPC in India. Filing Form STK-2 at 25% of the fee, combined with clearing your pending annual filings at only 10% of the accumulated late fees, can reduce a closure that would otherwise cost lakhs in penalties down to a fraction of that. The 31 August 2026 deadline is firm, and after it the Registrar resumes full penalties and can strike off your company on its own terms, putting your director record at risk under Section 164(2).

The sequence that works is straightforward: confirm eligibility, clear the filing backlog under the scheme, cancel GST and close bank accounts, then file STK-2 with C-PACE with a complete document set. Because the process includes a 30-day public notice period and C-PACE applies strict scrutiny, the practical deadline to start is well before the end of August, not on it.

IncorpX provides end-to-end company closure and strike-off assistance across all entity types, including compliance backlog clearance, GST cancellation, STK-2 preparation, and C-PACE follow-up. Our team calculates your exact CCFS-2026 saving, clears every pending filing, and manages the strike-off through to the final order. Government and statutory fees are charged separately at actuals. A free consultation is available for any founder deciding between strike-off, dormant status, or winding up.