Govt Eases Corporate Compliance for Firms and Start-Ups
13 Aug 2025 CW Team
The Government of India has introduced a series of reforms in 2024–25 to simplify corporate compliance, reduce costs, and improve ease of doing business for companies, including Micro, Small, and Medium Enterprises (MSMEs) and start-ups.
Key Measures Introduced
- Direct overseas listing: Indian public companies can now directly list securities in approved foreign jurisdictions, broadening investor access and providing alternative capital sources.
- Director KYC updates: Amendments allow additional opportunities to update mobile numbers and email addresses in the official KYC database.
- Faceless adjudication: Penalty proceedings have shifted to an online, video-conference-based process, removing the need for physical hearings.
- Faster cross-border mergers: Mergers of foreign-incorporated holding companies with wholly owned Indian subsidiaries now require only Central Government approval, replacing National Company Law Tribunal (NCLT) clearance.
- Expanded C-PACE operations: The Centre for Processing Accelerated Corporate Exit now handles voluntary company closures and Limited Liability Partnership (LLP) strike-offs.
Streamlined Business Registration
- The integrated SPICe+ and AGILE PRO-S web form offers eleven services for starting a business, from name reservation to tax and social security registrations.
- Zero incorporation fees now apply to companies with authorised capital up to Rs 1.5 million or up to 20 members with no share capital.
- A Central Registration Centre (CRC) processes company and LLP incorporation, while the LLP incorporation form FiLLiP is now linked to the tax system for PAN/TAN allotment.
- A Central Processing Centre (CPC) launched in February 2024 enables faster, centralised processing of electronic forms under the Companies Act.
Boost for Start-Ups
- The start-up recognition process is fully digital via the Startup India portal and National Single Window System, with self-certification and simplified documentation.
- A recognition handbook, online tutorials, and state-level workshops support entrepreneurs.
The Ministry of Corporate Affairs continues to amend the Companies Act, LLP Act, and associated rules based on stakeholder feedback and Company Law Committee recommendations.