Govt rolled out key reforms in 2025 to enhance ease of doing business

New Delhi, Jan 1 The Ministry of Corporate Affairs (MCA) undertook several policy, regulatory, institutional and technology-driven initiatives in 2025 to further simplify compliance, strengthen corporate governance, and enhance ease of doing business in India, according to an official statement issued on Thursday.

The Ministry has raised the threshold limit of paid-up share capital and turnover up to Rs 10 crore and Rs 100 crore respectively for small companies, making more firms eligible for various government incentives and easier loans from financial institutions.

The government also amended the Companies (Compromises, Arrangements and Amalgamations) Rules in September 2025 to widen the scope of Fast Track Mergers and Demergers under the Companies Act.

Besides, the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 have been amended on December 31, 2025 to provide easier procedure for closure of government companies.

The amendment provides that in such cases, the indemnity bond in respect of one or more directors appointed or nominated by the Central Government or state government shall be given by an authorised representative (not below the rank of Under Secretary or equivalent) in the administrative Ministry or Department of the Government of India or the State Government on behalf of the company.

This amendment is aimed at faster closure of government companies which are eligible to apply for removal of their names from register of companies as per provisions of section 248(2) of the Companies Act, 2013.

Pursuant to the amendment in the Rules notified on December 31, 2025 (to be effective from March 31, 2026), annual KYC filing requirement has been replaced with a simpler KYC intimation once in every three years. This amendment is aimed at providing significant ease of compliance to directors in all companies.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in the Lok Sabha on August 12, 2025 to reduce timelines, improve value maximisation, and strengthen governance. The Bill also proposes frameworks for creditor-initiated insolvency, group insolvency, and cross-border insolvency, and is presently under examination by the Select Committee of the Lok Sabha.

Till September, 2025, a total of 1,300 resolution plans have been approved under the Code with creditors realising Rs. 3.99 lakh crore, which is 170.09 per cent against liquidation value and 93.79 per cent of the fair value (based on 1,177 cases where fair value has been estimated). The haircut for creditors relative to the fair value of assets was around 6 per cent, while relative to their admitted claims is around 67 per cent.

As a major technology-driven reform, an integrated digital platform for the Insolvency and Bankruptcy Code (IBC) ecosystem is currently under development.

These reforms, particularly the digital integration of the insolvency ecosystem, are expected to improve credit availability to businesses, reduce transaction costs, and ensure faster and more predictable outcomes. Collectively, these initiatives reaffirm the government’s commitment to making India one of the top global destinations in ease of doing business, the statement said.

In order to help investors, the Investor Education and Protection Fund Authority (IEPFA) launched an Integrated Portal and Dedicated Call Centre to enable faster claim settlement and enhanced investor support. The portal integrates MCA-21, NSDL/CDSL, and PFMS into a single automated workflow, reducing post-approval transfer time for shares and dividends from several months to 1–2 days. Since its launch, over 24026 claims have been approved taking total approvals in the current financial year to 27,231.

These reforms have transformed claim disposal into a fully digital, transparent, and investor-friendly process.

To enhance regulatory reach and improve service delivery, the Ministry will operationalise three new Regional Directorates at Chandigarh, Navi Mumbai and Bengaluru; and 6 new Registrar of Companies (RoCs) at Delhi, Mumbai, Kolkata, Noida, Nagpur and Chandigarh with effect from January 1, 2026. These offices have been established keeping in view the rapid growth in the number of corporate entities and future regulatory requirements, the official statement added.

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