Dormancy (MSC-1) vs. Strike Off (STK-2): Choosing the Right Exit Under CCFS-2026
The CCFS-2026 offers a massive financial relief to regularize your status between April 15 and July 15, 2026
MINISTRY OF CORPORATE AFFAIRS
CA Prachi Gupta
5/21/20261 min read


Many entrepreneurs find themselves with "inactive" companies—entities with no significant accounting transactions. If you are in this position, the CCFS-2026 offers a massive financial relief to regularize your status between April 15 and July 15, 2026.
But which should you choose?
The "Dormant" Path (Form MSC-1):
Purpose: Use this if you have a unique company name, intellectual property, or a future project you want to keep "on ice" without the burden of full annual compliance.
The CCFS Benefit: Under the scheme, you pay only 50% (half) of the normal filing fee for Form MSC-1.
Result: The company remains on the register but with minimal annual filing requirements.
The "Strike Off" Path (Form STK-2):
Purpose: Use this if the business has served its purpose and you want to close the legal entity permanently.
The CCFS Benefit: Apply via Form STK-2 by paying only 25% of the standard filing fees during the scheme period.
Result: The company’s name is removed from the Register of Companies, ending all future compliance obligations.
Summary Table of CCFS-2026 Benefits:
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