The federal government has undertaken a sequence of coverage and legislative reforms since 2014 to strengthen the convenience of doing enterprise and scale back compliance burden, leading to a pointy enhance within the variety of energetic corporations throughout the nation.
In accordance with data shared in Parliament, initiatives starting from regulatory simplification and digitisation to decriminalisation of minor offences have helped enhance transparency, effectivity and investor confidence. The variety of energetic corporations has almost doubled from 9.52 lakh as on March 31, 2014 to 18.51 lakh as on March 31, 2025.
A key reform has been the Enterprise Reform Motion Plan (BRAP), launched in 2014, which focuses on decreasing regulatory hurdles and bettering clearance processes. States and Union Territories are assessed based mostly on proof and person suggestions to make sure efficient implementation of reforms on the grassroots degree, with seven editions of BRAP accomplished up to now.
A number of amendments to the Firms Act, 2013 between 2015 and 2020 have been undertaken to facilitate ease of doing enterprise, together with decriminalisation of technical and procedural violations. These measures eased the compliance burden on small corporations, one-person corporations, start-ups and producer corporations, whereas decreasing stress on legal courts and the Nationwide Firm Regulation Tribunal.
The Restricted Legal responsibility Partnership (Modification) Act, 2021 additionally decriminalised procedural violations and launched the class of “Small LLP” to offer decrease compliance necessities and lowered charges, encouraging formalisation of small companies.
Additional, exemptions from varied provisions of the Firms Act have been prolonged to non-public corporations, authorities corporations, charitable entities, Nidhis and firms in IFSC GIFT Metropolis. Incorporation charges have been waived for corporations with authorised capital as much as ₹15 lakh.
To enhance entry to capital and improve world integration, Indian public corporations have been permitted to instantly checklist securities in permissible overseas jurisdictions. The fast-track merger framework was expanded to incorporate mergers involving start-ups and small corporations, with additional broadening of its scope in September 2025.
On the procedural entrance, the Central Registration Centre was operationalised in 2016 to allow quicker incorporation, supported by built-in digital kinds similar to SPICe+ and AGILE PRO-S, which permit a number of registrations at a single level. Comparable amenities have been launched for LLPs by means of the FiLLiP type.
The federal government has additionally established devoted processing centres, together with the Centre for Processing Accelerated Company Exit (C-PACE) in 2023 for time-bound hanging off of corporations and LLPs, and the Central Processing Centre in 2024 for centralised dealing with of choose kinds. Adjudication proceedings beneath the Firms Act have been totally digitised by means of an e-adjudication platform to reinforce transparency and velocity.
In parallel, the Jan Vishwas (Modification of Provisions) Act, 2023 decriminalised 183 provisions throughout 42 central legal guidelines. Mixed with compliance discount efforts by central ministries, states and Union Territories, over 47,000 compliances have been simplified, digitised or eliminated.
The Ministry of Company Affairs has additionally built-in knowledge analytics-driven enforcement and compliance instruments into the MCA21 V3 platform, together with early warning and compliance administration techniques based mostly on threat evaluation.
The federal government stated these measures have collectively improved the convenience of dwelling and ease of doing enterprise, contributing considerably to financial progress and formalisation of enterprises.
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