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: