**Executive Summary**
The Ministry of Corporate Affairs reports on government initiatives since 2014 to strengthen the Ease of Doing Business, including the Jan Vishwas Act, 2023, which decriminalized 183 provisions across 42 Central Acts. The initiatives aim to reduce compliance burdens, enhance transparency, and improve efficiency. Various measures have been implemented, including amendments to company laws, the establishment of centralized processing centers, and the decriminalization of technical violations.
**Key Points / Main Content**
* **Business Reform Action Plan (BRAP):**
* Launched in 2014 by DPIIT to reduce obstacles and enhance transparency in regulatory processes.
* States and Union Territories are assessed on reform implementation.
* **Amendments to Companies Act, 2013 (CA-13):**
* Amendments in 2015 and 2017 to facilitate ease of doing business.
* Amendments in 2019 and 2020 to decriminalize technical violations and streamline compliance for Small Companies, One Person Companies, Start-ups, and Producer companies.
* Exemptions provided to Private companies, Government Companies, Charitable companies, Nidhis, and IFSC companies through notifications under section 462 of the CA-13.
* **Amendments to Limited Liability Partnership (Amendment) Act, 2021:**
* Decriminalized technical violations.
* Established a new category of "Small LLP" for reduced compliance burden.
* **Fee Reduction:**
* No fee for incorporation of companies with authorized capital up to Rs. 15.00 Lakh.
* **Direct Listing:**
* Direct listing of securities by Indian public companies in permissible foreign jurisdictions is allowed.
* **Fast-Track Merger:**
* The scope was expanded in February 2021, and again in September 2025, to allow mergers of Start-ups with Start-ups and small companies.
* **Central Registration Centre (CRC):**
* Operationalized in 2016 to provide speedy incorporation services, including e-Form SPICe+ and AGILE PRO-S.
* Introduced new e-Form FiLLiP for LLPs.
* **Centre for Processing Accelerated Corporate Exit (C-PACE):**
* Established in May 2023 to provide hassle-free striking off of companies and LLPs.
* **Central Processing Centre (CPC):**
* Established in February 2024 for centralized processing of 12 non-STP forms.
* **Companies (Adjudication of Penalties) Rules, 2014:**
* Amended in August 2024 to mandate electronic adjudication proceedings.
* **Decriminalization:**
* Jan Vishwas (Amendment of Provisions) Act, 2023 decriminalized 183 provisions across 42 Central Acts.
* Over 47,000 compliances reduced through self-identification exercises.
* **Data Analytics:**
* Data analytics-driven features integrated in MCA21 V3.
**Impact Analysis**
**Small Companies, One Person Companies, Start-ups, Producer Companies, Private Companies, Government Companies, Charitable companies, Nidhis, and IFSC companies, LLPs.**
* **Impact:** Reduced compliance burdens and simplified procedures, leading to cost savings and easier operations.
* **Action Required:** Understand and leverage the various exemptions, amendments, and streamlined processes to improve efficiency.
**Industry Chambers & Other Stakeholders**
* **Impact:** Enhanced transparency and efficiency in regulatory processes.
* **Action Required:** Familiarize themselves with the new initiatives and utilize the available platforms and services.
**Criminal Courts & National Company Law Tribunal (NCLT)**
* **Impact:** Reduced burden due to decriminalization of technical violations.
* **Action Required:** Adapt to the reduced caseload and focus on more significant violations.
**Indian Public Companies**
* **Impact:** Access to alternative sources of capital and broadened investor base through direct listing in foreign jurisdictions.
* **Action Required:** Consider utilizing the opportunity to directly list securities in foreign jurisdictions.
Key Entities Referenced
Jan Vishwas (Amendment of Provisions) Act, 2023: Act decriminalizing 183 provisions across 42 Central Acts to enhance Ease of Living and Ease of Doing Business.
Companies Act, 2013: Act which has been amended to facilitate ease of doing business.
Business Reform Action Plan (BRAP): Launched in 2014 by DPIIT, aims to reduce obstacles and enhance the transparency and efficiency of clearance and regulatory processes.
Ministry of Corporate Affairs: The ministry responsible for the initiatives described, including MCA21 V3.
Limited Liability Partnership (Amendment) Act, 2021: Act amended to decriminalise technical & procedural violations.
Ministry of Corporate Affairs
Government has undertaken specific initiatives
and policies to strengthen Ease of Doing
Business in the country since 2014
Government has focused on further decriminalization to
enhance Ease of Living and Ease of Doing Business; Jan
Vishwas (Amendment of Provisions) Act, 2023 decriminalized
183 provisions across 42 Central Acts.
प्रव तथ: 15 DEC 2025 5:53PM by PIB Delhi
The Government has undertaken the following specific initiatives and policies to strengthen the Ease of
Doing Business in the country since 2014:
(i) The Business Reform Action Plan (BRAP), launched in 2014 by the Department for Promotion of
Industry and Internal Trade (DPIIT), aims to reduce obstacles and enhance the transparency and efficiency
of clearance and regulatory processes, thereby cutting down time and costs for businesses. States and
Union Territories are assessed based on evidence and user feedback to ensure effective reforms at the
grassroots level. So far, seven editions of BRAP have been completed.
(ii) Amendments have been made in the Companies Act, 2013 (CA-13) in 2015 & 2017 to facilitate ease
of doing business and address concerns expressed by industry chambers & other stakeholders.
(iii) Amendments have been made in CA-13 in 2019 and 2020 to de-criminalize technical & procedural
violations and thus reduce the burden on criminal courts & National Company Law Tribunal (NCLT).
They were also aimed at streamlining compliance requirements for Small Companies, One Person
Companies, Start-ups and Producer companies.
(iv) Amendments have been made in the Limited Liability Partnership (Amendment) Act, 2021 to
decriminalise technical & procedural violations. A new category of "Small LLP" was established for
providing reduced compliance burden and lower fees to encourage formalization of small businesses.
(v) Exemptions from various provisions of Companies Act to Private companies, Government Companies,
Charitable companies, Nidhis and IFSC (GIFT city) companies have been provided through issuance of
notifications under section 462 of the CA-13 during 2015, 2017 and 2020.
(vi) There is no fee for incorporation of company with authorized capital up to Rs.15.00 Lakh.
(vii) Direct listing of securities by Indian public companies in permissible foreign jurisdictions has been
allowed. This is a boost for “Brand India” and increases attractiveness to growing technology sector,
stimulates efficiency & growth, provides alternative source of capital and broadens investor base.(viii) The scope of fast-track merger was expanded in February 2021 to allow mergers of Start-ups with
other Start-ups and with Small companies. The ambit has been further broadened in September 2025 to
allow more classes of companies to choose this route. The rules have also been amended so that the
“deemed approval” requirement is implemented more effectively for fast-track mergers.
(ix) The Central Registration Centre (CRC) was operationalized in 2016 to provide speedy incorporation
related services. An e-Form SPICe+ along with a linked form called AGILE PRO-S was introduced for
providing different services at one place such as Name Reservation, Incorporation, Allotment of PAN,
TAN, DIN, EPFO Registration, ESIC Registration, GST number, opening of Bank Account etc. at the time
of incorporation of company to start the business immediately. Similarly, new e-Form FiLLiP (Form for
incorporation of Limited Liability Partnership) was introduced for LLPs.
(x) The Centre for Processing Accelerated Corporate Exit (C-PACE) was established in May 2023
enabling the stakeholders by providing a hassle-free filing, timely and process-bound striking off their
companies’ and LLPs’ names from the Register.
(xi) The Central Processing Centre (CPC) was established in February 2024 for centralized processing of
12 non-STP forms.
(xii) The Companies (Adjudication of Penalties) Rules, 2014 have been amended in August 2024 pursuant
to which it has been provided that the adjudication proceedings under section 454 of the Companies Act,
2013 shall take place in electronic mode only through the e-adjudication platform developed by the
Ministry for this purpose. The platform provides for end-to-end digital process including online generation
of notices, hearings, generation of adjudication orders and payments. This enhances transparency and
enables speeder adjudication.
In addition, the Government has focused on further decriminalization to enhance Ease of Living and Ease
of Doing Business. This includes the Jan Vishwas (Amendment of Provisions) Act, 2023, which
decriminalized 183 provisions across 42 Central Acts. Under the initiative to reduce compliance burden,
Central Ministries/Departments and States/UTs have successfully reduced over 47,000 compliances
through self-identification exercises by way of simplification, digitization, decriminalization and
redundancy removal.
As on 31st March, 2014, there were 9, 52,433 active companies in the country. The number of active
companies on 31st March, 2025 stood at 18, 50,932. This shows that the initiatives listed out above have
led to almost doubling of active companies, contributing significantly to the growth of economy.
Data analytics-driven features have been integrated in MCA21 V3 including enforcement and compliance
modules. These include Early Warning System and Compliance Management System which use risk-
based classification of companies and filings, automated generation of alerts, exception reports, and
pattern analysis of non-compliance.
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 Lok Sabha today.
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