**Policy Summary: Corporate Compliance Simplification and Ease of Doing Business Initiatives (2024-2025)**
In 2024-2025, the Government of India, through the Ministry of Corporate Affairs, implemented several reforms to simplify corporate compliance, reduce costs, and promote ease of doing business, particularly for MSMEs and Startups.
Key measures include:
* **Overseas Listing:** Allowing direct listing of securities by Indian public companies in permissible foreign jurisdictions, as per the Companies (Listing of equity shares in permissible jurisdictions) Rules, 2024, notified on January 24, 2024.
* **KYC Updates:** Amending the Companies (Appointment and Qualification of Directors) Rules, 2014, effective August 1, 2024, to provide additional opportunities for stakeholders to update their mobile numbers and email addresses in the KYC database.
* **Faceless Adjudication:** Transitioning to a faceless adjudication mechanism, effective September 16, 2024, via amendments to the Companies (Adjudication of Penalties) Rules, 2014, eliminating physical hearings for corporate default cases and enabling online adjudication through VC.
* **Fast Mergers:** Amending the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, effective September 17, 2024, to delegate the approval of mergers between foreign holding companies and their Indian wholly-owned subsidiaries to Regional Directors, previously requiring NCLT approval.
* **Centralized Processing:** Expanding the Centre for Processing Accelerated Corporate Exit (CPACE), operational since May 1, 2023, to include centralized processing of Limited Liability Partnership (LLP) striking-off applications, effective August 5, 2024.
**Streamlined Company Registration:**
* **Integrated Web Form:** Deploying a single integrated web form (SPICe) along with AGILE PROS, offering eleven services related to starting a business, including name reservation, incorporation, PAN, TAN, DIN, EPFO Registration, ESIC Registration, GST number, Bank Account Number, Profession Tax Registration (Mumbai, Kolkata, and Karnataka), and Delhi Shops and Establishment Registration.
* **Zero Incorporation Fee:** Waiving incorporation fees for companies with authorized capital up to Rs. 15 lakh or with up to 20 members where no share capital is applicable.
* **Central Registration Centre (CRC):** Establishing a CRC for name reservation and incorporation of companies and LLPs.
* **Integrated LLP Incorporation:** Integrating the LLP Incorporation Form (FiLLiP) with the Central Board of Direct Taxes (CBDT) to provide PAN/TAN at the time of LLP incorporation.
* **Central Processing Centre (CPC):** Operationalizing a CPC on February 16, 2024, for faster and centralized handling of electronic forms.
**Startup India Initiative:**
* Streamlining the startup recognition process through the Startup India portal and the National Single Window System (NSWS), with simplified documentation and self-certification.
* Providing recognition handbooks and tutorials on the Startup India portal.
* Conducting workshops across States/UTs with support from State/UT nodal agencies and regional stakeholders.
These measures are based on stakeholder input and Company Law Committee recommendations, with ongoing amendments to the Companies Act, 2013, and LLP Act, 2008.
Key Entities Referenced
Ministry of Corporate Affairs: The Indian government ministry responsible for regulating corporate affairs.
MSMEs: Micro, Small, and Medium Enterprises; businesses that the government aims to support.
Startup India: A Government of India initiative to build a strong ecosystem for nurturing innovation and Startups in the country.
Companies Act, 2013: An Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.
LLP Act 2008: The Limited Liability Partnership Act 2008 is an Act of the Parliament of India that introduced the Limited Liability Partnership (LLP) in India.
Central Registration Centre CRC: A center set up for name reservation and incorporation of companies and Limited Liability Partnerships.
National Single Window System NSWS: A system to streamline the application process for startup recognition.
Rajya Sabha: The Upper House of the Parliament of India.
Ministry of Corporate Affairs
Government has Implemented Series of Reforms to
Simplify Corporate Compliance, Reduce Costs and
Promote Ease of Doing Business for MSMEs and
Startups
Steps taken to introduce overseas listing, online
adjudication, fast mergers and simplified company
registration
Posted On: 12 AUG 2025 4:24PM by PIB Delhi
The Government of India has been taking several steps towards simplifying corporate compliance burdens
and reducing costs for all companies including Micro, Small, and Medium Enterprises and Startups.
The important measures taken in this regard in 2024-25 are as under:
i. Direct listing of securities by Indian public companies in permissible foreign jurisdictions has been
allowed. This would boost "Brand India”, increase attractiveness to growing technology sector, stimulate
efficiency & growth, provide alternative source of capital and broaden investor base. The Companies
(Listing of equity shares in permissible jurisdictions) Rules, 2024 were notified on 24.01.2024.
ii. The Ministry has carried out an amendment in the Companies (Appointment and Qualification of
Directors) Rules, 2014 on 16.07.2024 (effective from 01.08.2024) to address the suggestions of
stakeholders for allowing additional opportunities to update their personal mobile number/email address
in the KYC database.
iii. An amendment was made to the Companies (Adjudication of Penalties) Rules, 2014 on 05.08.2024
(effective from 16.09.2024) to transition to a faceless adjudication mechanism to eliminate physical
hearings for corporate default cases. This process has made it easier for Directors and key Managerial
Persons to attend the adjudication proceedings by introducing adjudication through online VC.
iv. An amendment has been made in the Companies (Compromises, Arrangements and Amalgamations)
Rules, 2016 on 09.09.2024 (effective from 17.09.2024). Pursuant to this amendment, merger of a
holding company incorporated abroad with its wholly owned subsidiary incorporated in India would
require approval of Central Government (delegated to Regional Directors). Prior to this amendment,
such mergers required approval of the NCLT. This would make this process speedier and would allow
NCLT to concentrate on other areas.
v. The C-PACE (Centre for Processing Accelerated Corporate Exit) (C-PACE) was made operational
w.e.f. 1.05.2023 under Section 242(2) of the Companies Act, 2013 for centralized and transparent
processing of the matters related to voluntary closure of the companies. Vide notification No G.S.R.
475(E) dated 5th August 2024 the Ministry centralized the striking off of Limited Liability Partnerships
(LLPs) by empowering the CPACE for processing of e-Forms related to striking off of LLPs as well.
The Government of India has undertaken a number of steps to ensure the quick registration of companies and
their approvals in India.
These initiatives are as under:i. A single integrated new web form called SPICe+ along with AGILE PRO-S has been deployed. This
form provides eleven services related to ‘starting a business’ namely (i) Name Reservation, (ii)
Incorporation, (iii) Permanent Account Number (PAN), (iv) Tax Deduction Account Number (TAN), (v)
Director Identification Number (DIN), (vi) Employees’ Provident Fund Organisation (EPFO)
Registration, (vii) Employees’ State Insurance Corporation (ESIC) Registration, (viii) Goods and
Services Tax (GST) number, (ix) Bank Account Number, (x) Profession Tax Registration (Mumbai,
Kolkata and Karnataka), (xi) Delhi Shops and Establishment Registration.
ii. Zero fee is now charged for incorporation of all companies with authorized capital up to Rs. 15 lakh or
with up to 20 members where no share capital is applicable.
iii. A Central Registration Centre (CRC) has been set up for name reservation and incorporation of
companies & Limited Liability Partnership (LLP).
iv. The LLP Incorporation Form called FiLLiP has also been integrated with Central Board of Direct Taxes
(CBDT) to provide PAN/TAN at the time of Incorporation of LLP itself.
v. The Central Processing Centre (CPC) was operationalized w.e.f 16.02.2024 for faster and centralised
handling of various electronic e-forms filed earlier with jurisdictional ROCs under Companies Act,
2013.
The application process for startup recognition under the Startup India initiative has been streamlined and
made entirely digital through an interactive Startup India portal and the National Single Window System
(NSWS) making the same accessible from any part of the country. The documentation process for recognition
is simplified with self-certification. Recognition handbook and tutorials have also been developed and
uploaded on Startup India portal for ease of navigating recognition process. To promote startup recognition
and to handhold entrepreneurs, workshops are held across States/UTs with support of State/UT nodal agencies
for startups, and regional stakeholders such as incubators.
The action for amendment in Companies Act, 2013, LLP Act 2008 and Rules made thereunder is taken from
time to time on the basis of inputs received from stakeholders and the recommendations of the Company Law
Committee.
This information was given by the Minister of State in the Ministry of Corporate Affairs; and the Minister of
State in the Ministry of Road, Transport and Highways, Shri Harsh Malhotra in a written reply to a question in
Rajya Sabha today.
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(Release ID: 2155546)