GOI Simplifies Corporate Compliance

• 13 Aug 2025
• 397 Views

To make corporate compliance simpler and reduce costs for companies incl. MSMEs and Startups, the Government of India has taken several initiatives. In this regard, the important initiatives taken by the Government in 2024-25 are as follows:

(i.) Indian public companies are now allowed to directly list their securities in permissible foreign jurisdictions. This move is expected to boost "Brand India," better the appeal of the growing technology sector, stimulate efficiency and growth, provide alternative source of capital and broaden the investor base. For making this possible, the Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules 2024 were notified on January 24 in 2024.

(ii.) The Ministry implemented an amendment to the Companies (Appointment and Qualification of Directors) Rules 2014 on July 16 in 2024, which will take effect on August 1, 2024. This amendment addresses stakeholder suggestions by allowing additional opportunities for individuals to update their personal mobile numbers and email addresses in the KYC database. 

(iii.) Additionally, an amendment was made to the Companies Adjudication of Penalties Rules 2014, on August 5, 2024, effective from September 16 in 2024. This amendment introduces a faceless adjudication mechanism to do away with the need for physical hearings in corporate default cases. This new process allows Directors and key Managerial Persons to participate in adjudication proceedings via online video conferencing. 

(iv.) Furthermore, an amendment to the Companies Compromises, Arrangements and Amalgamations Rules 2016 was enacted on September 9 in 2024 to take effect on September 17 in 2024. With this amendment, mergers of holding companies incorporated abroad with their wholly owned subsidiaries in India will now require the approval of the Central Government, which has been delegated to Regional Directors. Previously, such mergers needed National Company Law Tribunal’s approval. This change is expected to speed up the process and will let the tribunal to focus on other areas. 

(v.) Lastly, the Centre for Processing Accelerated Corporate Exit (C-PACE) became operational on May 1 in 2023 under Section 242(2) of the Companies Act of 2013. This initiative aims to centralize and streamline the processing of voluntary closures of companies. Through notification No. G.S.R. 475(E) dated August 5 of 2024, the Ministry made process for striking off Limited Liability Partnerships centralized by empowering C PACE to handle the processing of electronic forms related to the striking off of LLPs.

To make sure companies are quickly registered and get approvals easily, the Government of India has taken several steps including the following:

(i.) A single integrated web company incorporation form SPICe+ has been deployed along with AGILE PRO S. This form offers a total of eleven services pertaining to establishing a business. These services are the following:

(a.) Name Reservation,

(b.) Incorporation, 

(c.) Permanent Account Number (PAN), 

(d.) Tax Deduction Account Number (TAN), 

(e.) Director Identification Number (DIN), 

(f.) Employees’ Provident Fund Organisation (EPFO) Registration, 

(g.) Employees’ State Insurance Corporation (ESIC) Registration, 

(h.) Goods and Services Tax (GST) number, 

(i.) Bank Account Number, 

(j.) Profession Tax Registration (Mumbai, Kolkata and Karnataka), 

(k) Delhi Shops and Establishment Registration.

(ii.) For incorporation of companies having authorized capital up to Rs. 15 lakh or with up to 20 members (where there is no applicability of share capital), zero fee amount is charged.

(iii.) For name reservation as well as incorporation of companies and limited liability partnerships, a central registration centre has been established.

(iv.) To provide PAN/TAN during the LLP’s incorporation time itself, the LLP incorporation form FiLLiP has been integrated with Central Board of Taxes.

(v.) To speed up and centralize handling of certain e-forms filed earlier with the jurisdictional registrar of companies, the central processing centre became operational from 16 February 2024.

Under the Startup India programme, the application process for recognition of startups has become streamlined and 100% digital via an interactive Startup India portal and National Single Window System. This makes the process easily accessible from any region of the country. 

With self-certification, the documentation process for recognition has become simpler. For making it easier for applicants to figure out the recognition process, the Startup India portal has uploaded handbook and tutorials.

Across the states and union territories of India, workshops are held for promotion of startup recognition and handholding entrepreneurs. For this, the state/UT nodal agencies for startups and regional stakeholders like incubators are extending their support. 

Based on the inputs received from various stakeholders and the Company Law Committee’s recommendations, the Companies Act 2014, the LLP Act 2008 and the rules made thereunder are amended from time to time. 

The information was provided by Shri. Harsh Malhotra - the Minister of State in the Ministry of Corporate Affairs; and the Minister of State in the Ministry of Road, Transport and Highways - in a written response to a question asked in Rajya Sabha on 12 August 2025.

Source: Press Information Bureau