—Guide
MCA Amnesty Schemes Explained: CFSS, LLP Settlement Scheme and What to Expect
What MCA amnesty schemes offer, the major past schemes (CODS 2018, CFSS 2020, LLP Settlement Schemes), and whether it's worth waiting for the next one.
Every few years, the Ministry of Corporate Affairs opens a window for companies and LLPs to catch up on missed filings at a reduced cost, and without penalties for the delay. These amnesty schemes can save a company a great deal, but they're time-bound and come with conditions. This guide looks at the major schemes the MCA has run, what they offered, and how to think about them if your company is behind.
What an Amnesty Scheme Does
An MCA amnesty scheme is a one-time window, set up by a circular, during which defaulting companies or LLPs can file their pending documents on relaxed terms. Past schemes have typically offered some combination of:
- A waiver or reduction of the additional fees for late filing, so only the normal fee, or a small additional fee, is payable.
- Immunity from prosecution and penalties for the delay in filing the documents covered.
- An option to apply for strike-off or dormant status on easier terms.
Schemes usually don't cover every form or every kind of default, and often exclude companies already facing prosecution or other action.
Past Schemes
Condonation of Delay Scheme, 2018
Introduced after the MCA disqualified a large number of directors of companies that hadn't filed, it let companies that had been struck off, and whose directors had been disqualified, apply for restoration and file their pending documents, with the directors' DINs reactivated for the purpose.
Companies Fresh Start Scheme, 2020
Launched during the pandemic, the Companies Fresh Start Scheme let companies file any belated documents with the MCA, paying only the normal fee, with the additional fees waived. It gave immunity from prosecution and penalties for the delay in filing, and let inactive companies apply for dormant status or strike-off at a reduced cost. It ran for several months in 2020, after an extension.
LLP Settlement Schemes, 2020 and 2022
Parallel schemes for LLPs allowed them to file pending forms, including Form 3, Form 4, Form 8 and Form 11, with the additional fees substantially reduced or waived, and gave immunity for the delay. The 2022 scheme came after the LLP Act had been amended to reduce penalties for small LLPs.
Should You Wait for the Next Scheme?
It's tempting to hold off in the hope of a scheme. For most companies, it isn't worth it:
- There's no way to know whether, or when, the next scheme will be announced.
- Schemes are usually open for only a few months, often with little notice.
- Meanwhile, additional fees keep accruing, and the risk of strike-off and director disqualification grows.
- A company that crosses three years of non-filing has disqualified directors, which a later scheme may not fully fix.
If a scheme is open when you're ready to regularise, use it. If not, it's usually cheaper and safer to regularise now than to wait.
How to Use a Scheme When It Opens
- Read the scheme's conditions: which forms and periods are covered, and who is excluded.
- Finalise and audit any pending accounts in advance, so you're ready to file in the window.
- File the pending documents within the scheme's dates, in the order the MCA system requires.
- Where required, apply for the immunity certificate after filing.
- Keep copies of everything, in case the immunity is questioned later.
Getting Help
Think Filing tracks MCA amnesty announcements, tells clients when a scheme could help them, and handles filings within the scheme window, or regularises outside a scheme when waiting would cost more.