Parliament Question: Schemes Pertaining to ICAI, ICSI and ICMAI

1 GOVERNMENT OF INDIA MINISTRY OF CORPORAE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 1210 TO BE ANSWERED ON 27.07.2026, 2026/SHRAVANA 5, 1948 (SAKA) Schemes Pertaining to ICAI, ICSI and ICMAI 1210. Shri Ganesh Singh: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) the details of the schemes implemented by the Government, including objectives, implementation framework, eligibility criteria and the role envisaged for professional bodies such as the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI) and the Institute of Cost and Management Accountants of India (ICMAI); (b) whether the Government has undertaken any assessment regarding the compliance-related challenges faced by Micro, Small and Medium Enterprises (MSMEs) in smaller cities and towns, if so, the details thereof; (c) the estimated number of paraprofessionals proposed to be trained under the scheme during the next three years, State-wise, including Madhya Pradesh; and (d) the steps being taken by the Government to ensure that MSMEs receive affordable, accessible and reliable compliance assistance under the proposed scheme, particularly in aspirational districts and underserved regions of the country? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA] (a) The Government has announced 'Corporate Mitra' to create a cadre of accredited para-professionals for providing affordable compliance, accounting, taxation, financial, governance and regulatory support to MSMEs, particularly in Tier-II and Tier-III Towns thereby strengthening the foundation of India’s entrepreneurial ecosystem and contributing to the vision of Viksit Bharat. The details of the Corporate Mitra, including objectives, implementation framework, eligibility criteria and role of Professional bodies have been specified in the guidelines for Corporate Mitra.(Guidelines:https://resource.cdn.icai.org/92897cmc260626c.pdf). (b) No such specific assessment has been done by this Ministry. However, the Ministry of Corporate Affairs (MCA) has been taking several measures for ease of doing business and to ease compliance burden for small companies in the entire country. Some of the important measures taken by MCA are at Annexure-I. Contd…2/-2 (c) The Professional Institutes will initially train 2,000 candidates across the country in the first batch of this financial year including 200 candidates from the North Eastern Region (NER). Targets for three years has not been finalised. There are no State wise targets. (d) The proposed course aims to ensure that MSMEs including those located in aspirational districts and underserved regions, have access to affordable, accessible and reliable compliance assistance through a trained pool of Corporate Mitras. To promote inclusive participation, the course provides for dedicated representation from the North Eastern Region and adopts an online academic learning model complemented by structured on-the-job training, thereby facilitating participation from candidates across the country, including remote and underserved areas. *****3 Annexure-I Annexure-I to the Lok Sabha Unstarred Q. No. 1210 part (b) to be answered on 27.07. 2026 Some of the important steps taken by MCA for ease of doing business and to ease compliance burden for small companies Sr. Section Subject Provisions in the Company Act, 2013 to No. support small companies 1. 2 (40) proviso Financial Statement Requirement of cash flow statement to be part of financial statement made optional. 2. 92(1) Proviso Annual return (i) Shall be signed by a company secretary or where is there is no company secretary by a Director of the company. (ii) Abridged annual return prescribed for small companies. 3. 92(1)(g) Disclosure in annual Disclosure as to aggregate of amount return about of remuneration drawn by directors remuneration of adequate for small companies. directors 4. 134(3A) Board’s Report Abridged Board Report prescribed for small companies. 5. 139(2) read Rotation of auditors Rotation of auditors in small companies with rule 5 of is not mandatory. Companies (Audit and Auditors) rules, 2014 6. 141(3)(g) Restriction on Restriction w.r.t. maximum auditor- auditor-ships ships not applicable to auditors of small companies. 7. 143(3)(i) Disclosure in These disclosures are not applicable Auditors report on for small companies. internal financial controls4 Sr. Section Subject Provisions in the Company Act, 2013 to No. support small companies 8. 173 (5) Meetings of Under Companies Act, 2013, Board of Directors of a company are required to Board. meet at least once in 120 days, 4 board meetings in a year. However, in case of a small company, one board meeting in each half of a calendar year with a gap between two meetings of not less than 90 days is sufficient to comply with the requirement of section 173(5) of the Companies Act. 9. 233 Merger through Mergers between two or more small approval of RD companies or between one or more start-up company with one or more small company allowed through approval of RD. 10. 446B Lesser penalties Small companies are entitled for lesser penalties as per section 446B. 11. Rule 8(12)(a) Companies Small companies are exempted from (Registration requirements w.r.t. pre-certification of offices and Fees) forms by professionals. amendment Rules, 2014 12. Annexure- Companies Lesser fees allowed for small (Registration companies. Table of fees offices and Fees) amendment Rules, 2014 13. Clause Companies The Companies (Auditor’s Report) 1(2)(iv) Order (CARO) 2020 is not applicable on (Auditor's Report) small companies Order, 2020 (CARO 2020) 14. Incorporation Zero fee is charged for incorporation of of small all companies with authorized capital companies up to Rs. 15 lakh or with up to 20 members where no share capital is applicable. 15. Specified MSME Form-1 vide MCA has notified revised MSME Form-1. Companies Notification S.O. Companies having outstanding (Furnishing 2751(E) dated payments to Micro or Small Enterprise of 15.07.2024 suppliers for more than 45 days from information the date of acceptance or deemed5 Sr. Section Subject Provisions in the Company Act, 2013 to No. support small companies about acceptance of goods or services, as per payment to section 9 of the MSMED Act, 2006, are Micro and required to furnish such details in Small MSME Form-1. Enterprise Suppliers) Amendment Order, 2024 16. Section 2(85) Definition of Small With effect from 1st December 2025, read with The Company the thresholds for classification of Companies (Amendment) small companies have been enhanced. (Specificatio The paid-up capital limit has been n of increased from up to ₹4 crore to up to Definitions ₹10 crore and the turnover limit from up Details) to ₹40 crore to up to ₹100 crore, Rules, 2014 thereby bringing more companies under the definition of small company and reducing their compliance burden.