TFP Bureau, New Delhi, August 12, 2025 — In a significant push to promote ease of doing business, the Government of India has rolled out a series of corporate reforms aimed at simplifying compliance, cutting costs, and accelerating processes for companies — especially Micro, Small, and Medium Enterprises (MSMEs) and startups.
The initiatives, implemented over 2024–25, span across multiple regulatory domains and are designed to make corporate operations faster, cheaper, and more transparent.
One of the most notable reforms is the direct listing of Indian public companies in permissible foreign jurisdictions, a move expected to boost “Brand India,” attract more global investors, and open alternative sources of capital, especially for technology-driven enterprises.
Digital-first compliance
The Ministry of Corporate Affairs has shifted penalty adjudication to a faceless, online mechanism, eliminating the need for physical hearings and enabling directors and key managerial personnel to attend proceedings via video conferencing.
Company mergers have also been streamlined. The merger of a foreign holding company with its wholly-owned Indian subsidiary will now require only Central Government approval (delegated to Regional Directors), bypassing the earlier National Company Law Tribunal (NCLT) process, thus speeding up transactions.
Faster registration and closures
The government has centralized and digitized the voluntary closure process of companies and Limited Liability Partnerships (LLPs) through the Centre for Processing Accelerated Corporate Exit (C-PACE). Additionally, the new integrated SPICe+ web form, combined with the AGILE PRO-S system, allows incorporation-related services — from name reservation to GST registration and bank account opening — to be completed in a single application.
Zero incorporation fees now apply to companies with authorized capital up to ₹15 lakh or with up to 20 members and no share capital, further reducing entry barriers. A dedicated Central Registration Centre (CRC) has been set up to handle company and LLP incorporations, while LLP registration has been integrated with the Central Board of Direct Taxes for instant PAN and TAN issuance.
Empowering startups
Under the Startup India initiative, the application process for recognition has been fully digitized via the National Single Window System (NSWS), with self-certification replacing cumbersome documentation. Online tutorials, recognition handbooks, and state-level workshops are being organized to guide entrepreneurs through the process.
Officials stated that amendments to the Companies Act, LLP Act, and related rules will continue to be introduced based on industry feedback and expert recommendations, ensuring that India’s corporate framework remains agile and globally competitive.
These reforms are expected to strengthen India’s investment climate, boost entrepreneurship, and make it easier for businesses to scale both domestically and internationally.
