The Ministry of Corporate Affairs (MCA) undertook several significant reforms and initiatives during 2025 to simplify compliance, strengthen corporate governance, and improve the ease of doing business in India. The major highlights are as follows:
Major Policy and Regulatory Reforms
Higher Thresholds for Small Companies:
The MCA increased the paid-up share capital limit to ₹10 crore and the turnover threshold to ₹100 crore for small companies, easing compliance requirements for a larger set of enterprises.
Simplified Closure of Government Companies:
To streamline the process of striking off government companies under Section 248(2) of the Companies Act, 2013, amendments were made on December 31, 2025, to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. These changes facilitate faster closure of eligible government companies.
Relaxation in Director KYC Requirements:
Annual KYC filing for directors has been replaced with a simplified KYC requirement once every three years, effective from March 31, 2026, significantly reducing compliance burden.
Improved Merger and Acquisition Framework:
Amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 expanded the scope of fast-track mergers and demergers to include additional categories of unlisted companies and group entities, reducing time and cost of corporate restructuring.
Ease of Doing Business Measures
Several general circulars were issued to ensure a smooth transition to the MCA V3 platform, grant waivers on additional fees, extend filing timelines, and allow companies to conduct AGMs and EGMs through video conferencing or other audio-visual means.
Investor Protection and Education
IEPFA Reforms:
In August 2025, the Investor Education and Protection Fund Authority (IEPFA) launched an integrated portal and a dedicated call centre to expedite claim settlements and enhance investor support. The portal integrates MCA-21, NSDL/CDSL and PFMS, reducing post-approval transfer time for shares and dividends from months to 1–2 days. Over 24,000 claims have already been approved since its launch.
Insolvency and Bankruptcy Code (IBC) Progress
By September 2025, a total of 1,300 resolution plans had been approved under the Insolvency and Bankruptcy Code, 2016. Creditors recovered ₹3.99 lakh crore, amounting to 170.09% of liquidation value and 93.79% of fair value.
The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in Parliament on August 12, 2025 to reduce timelines, improve value maximisation and strengthen governance.
Institutional Expansion
Three new Regional Director (RD) offices were established in Chandigarh, Navi Mumbai and Bengaluru.
Six new Registrar of Companies (RoC) offices became operational in Delhi, Mumbai, Kolkata, Noida, Nagpur and Chandigarh with effect from January 1, 2026.
