ICSI Requests MCA to Introduce “Company Law and LLP Law Settlement Scheme, 2025”
ICSI urges the Ministry of Corporate Affairs to launch a new “Company Law and LLP Law Settlement Scheme, 2025” to help defaulting companies and LLPs regularise their filings.
The Institute of Company Secretaries of India (ICSI) has written to the Ministry of Corporate Affairs (MCA) asking for a new relief scheme for companies and Limited Liability Partnerships (LLPs) that have missed filing their statutory documents.
In its letter dated November 10, 2025, ICSI requested the government to launch a “Company Law and LLP Law Settlement Scheme, 2025.” The Institute said many companies and LLPs have been unable to file their annual returns and financial statements on time because of technical problems, operational challenges and financial difficulties, especially among small and medium enterprises.
ICSI pointed out that non-compliance has increased sharply in recent years. According to data shared in the letter, more than 5.3 lakh companies failed to file their financial statements for the financial year 2022-23, while over 5.1 lakh companies did not submit their annual returns.
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The proposed scheme would allow defaulting companies and LLPs to complete all pending filings during a one-time compliance window. It also suggests a waiver or cap on additional fees and immunity from prosecution for delays. The scheme would make it easier to close or mark inactive companies as dormant.
ICSI said that earlier government initiatives such as the Company Law Settlement Scheme, 2014, the Companies Fresh Start Scheme, 2020, and the LLP Settlement Scheme, 2020 helped improve compliance and reduce legal disputes.
The Institute believes that a new settlement scheme will support companies in becoming compliant again, reduce the burden on the government, and promote ease of doing business in India.
The letter was signed by CS Dhananjay Shukla, President of ICSI, who also offered the Institute’s support to the MCA in preparing the framework of the proposed scheme.
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