MCA reforms in 2025 simplified compliance, boosted governance

New Delhi: The Ministry of Corporate Affairs (MCA) undertook several policies, 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 Rs10 crore and Rs100 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.