**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 320 regarding inefficiencies in regulatory compliance filings under the Companies Act. The response, dated February 2, 2026, details the government's measures to address delays and improve the processing of statutory forms, merger approvals, and corporate restructuring applications. It includes information on the volume of complaints/queries over the last few years and recent changes designed to expedite these processes.
**Key Points / Main Content**
* **E-form Processing:**
* E-forms are processed through Straight Through Process (STP), conditional STP, and non-STP modes.
* STP e-forms are recorded immediately upon filing.
* Non-STP forms are processed according to the Companies Act and Rules.
* A system for raising queries/grievances via an online ticketing mechanism and call centre is in place, and timely resolution is monitored.
* **Ticket Resolution Data:**
* The document includes a table outlining the number of approval-related and technical issue-related tickets received and resolved from September 18, 2022, to March 31, 2025.
* The total number of tickets in 2022-2023: 402,944
* The total number of tickets in 2023-2024: 640,546
* The total number of tickets in 2024-2025: 552,916
* **Fast-Track Merger Initiatives:**
* The fast-track merger process has been extended under the Companies Act, 2013 to include mergers of Startups with other Startups and with Small companies.
* September 2025: the scope of the Fast-track merger has been enhanced
* Amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, were made in 2023 to implement "deemed approval" requirements under section 233 more effectively. If RD does not file a consideration before NCLT, it shall be deemed that RD has no objection and confirmation order shall be issued accordingly.
* Rule 25A of the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, amended in 2024, provides that mergers of holding companies incorporated abroad with their wholly owned subsidiaries incorporated in India now require approval of the Central Government (delegated to Regional Directors), instead of NCLT approval.
**Impact Analysis**
**Companies and Startups**
* **Impact:** Benefit from faster processing of e-forms and merger approvals, especially Startups and small companies. Reduced procedural bottlenecks enhance ease of doing business.
* **Action Required:** Utilize the streamlined e-form filing processes and fast-track merger options available. Ensure compliance with the Companies Act and relevant Rules. Be aware that the RD needs to file with the NCLT within 60 days or the merger will be considered approved.
**Regional Directors (RD)**
* **Impact:** RD is delegated the function of approving certain mergers
* **Action Required:** Ensure applications before NCLT or confirmations are completed within the specified timeframe to avoid deemed approval.
**Central Government**
* **Impact:** Merger of holding companies incorporated abroad with their wholly owned subsidiaries incorporated in India now require approval of the Central Government.
* **Action Required:** Ensure applications before NCLT or confirmations are completed within the specified timeframe to avoid deemed approval.
Key Entities Referenced
Companies Act: The primary legislation governing companies in India, impacting regulatory compliance and filing procedures.
Companies (Compromises, Arrangements and Amalgamations) Rules, 2016: Rules under the Companies Act governing mergers, arrangements, and amalgamations of companies, including amendments related to deemed approvals and cross-border mergers.
Ministry of Corporate Affairs: The Indian government ministry responsible for administering the Companies Act and related regulations.
Regional Director (RD): A regulatory authority whose role in merger approvals has been modified, including provisions for deemed approvals.
Straight Through Process (STP): An electronic process for compliance filing, where e-forms are automatically taken on record upon completion.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 320
ANSWERED ON MONDAY, 02ND FEBRUARY 2026
MAGHA 13, 1947 (SAKA)
INEFFICIENCIES IN REGULATORY COMPLIANCE FILING
320. Md Abu Taher Khan
Will the Minister of Corporate Affairs be pleased to state:
(a) whether the Government has received complaints or reports
regarding delays and inefficiencies in the processing of statutory
forms, filing approvals and other regulatory compliances under the
Companies Act;
(b) if so, the details of such cases received during the last three
years, including the nature of delays and average processing
timelines;
(c) whether the Government has taken measures to fast-track
merger approvals, corporate restructuring applications and related
filings to reduce procedural bottlenecks and enhance ease of doing
business; and
(d) if so, the details of reforms or digital initiatives implemented by
the Government to expedite these processes?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND
MINISTER OF STATE IN THE MINISTRY OF ROAD TRASPORT AND
HIGHWAYS
[SHRI HARSH MALHOTRA]
(a)&(b) At present, processing of e-forms for compliance filing by
companies are done through Straight Through Process (STP),
conditional STP and non-STP mode. The e-forms processed in STP
mode are taken on record as soon as the filing is completed. Non-STP
Processing of e-forms are carried out as per the provisions of the
Companies Act and Rules made thereunder. A streamlined process of
raising queries, grievances through an online ticketing mechanism
and call centre is in place. These tickets are resolved keeping in
mind the provisions of the Companies Act and Rules made
thereunder. Timely and qualitative resolution of tickets is monitoredregularly and corrective steps are taken whenever required. The
details of tickets received and resolved are as under :
Approval Technical Total
related issue
tickets related
tickets
18th Sep 2022 to 31st March, 2023 13252 389692 402944
1st Apr 2023 to 31st March, 2024 38514 602032 640546
1st Apr 2024 to 31st March 2025 92644 460272 552916
(c) & (d) The initiatives implemented by the Government for fast-track
merger approvals, corporate restructuring applications and related
filings to reduce bottlenecks and enhance ease of doing business
are as follows :-
(i) The fast-track process for mergers has been extended under
the Companies Act, 2013 to also include mergers of Startups with
other Startups and with Small companies, so that the process of
mergers & amalgamations is completed faster for such companies.
Scope of Fast-track merger has also been enhanced in September
2025 to allow more number of companies to use such speedier and
user-friendly framework.
(ii) The Companies (Compromises, Arrangements and
Amalgamations) Rules, 2016 were amended in 2023 pursuant to
which "deemed approval" requirements provided under section 233
are implemented more effectively. The amendment, inter alia,
provided that, in case a Regional Director (RD) does not file an
application before NCLT for considering the scheme of merger under
section 232 or does not issue confirmation order for approval of
merger u/s 233 within the time limit provided (i.e. 60 days), it shall be
deemed that RD has no objection and the confirmation order shall be
issued accordingly.
(iii) Amendment has been made in rule 25A of the Companies
(Compromises, Arrangements and Amalgamations) Rules, 2016
amended in 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.
****