Year-End Review 2025: Ministry of Corporate Affairs – Transforming Corporate Governance & Ease of Doing Business

Year-End Review 2025: Ministry of Corporate Affairs

Transforming Corporate Governance & Enhancing Ease of Doing Business in India
📊 Threshold Enhancement
Paid-up capital and turnover limits for small companies significantly enhanced
⚖️ Simplified Closure Process
Easier procedure for closure of government companies introduced
🔐 KYC Reforms
Annual KYC replaced with abridged filing once in three years
🔄 M&A Framework Reforms
Fast-track mergers and demergers scope widened
💼 Investor Protection
Integrated Portal & Call Centre launched by IEPFA
💰 IBC Success
₹3.99 lakh crore realized through 1300 resolution plans
🏛️ Institutional Expansion
3 new Regional Directorates & 6 new RoCs to be operational from 2026
🎓 PM Internship Scheme
Over 7.3 lakh candidates registered for industry internships

Major Reforms & Achievements 2025

1. Ease of Doing Business Reforms

Enhanced Threshold for Small Companies

Notification: G.S.R. 880(E) dated 01.12.2025

ParameterPrevious LimitNew Limit (2025)Increase
Paid-up Share Capital₹4 crore₹10 crore150% Increase
Turnover₹40 crore₹100 crore150% Increase

Impact: More companies qualify for simplified compliance and reduced regulatory burden.

Simplified Company Closure Process

Amendment: Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 amended on 31st December 2025

Key Provision: Government companies can now file applications with Registrar C-PACE under section 248(2) with indemnity bond by authorized government representative (not below Under Secretary rank).

Objective: Faster closure of defunct government companies and streamlined exit process.

Director KYC Reforms

Major Relief: Annual KYC requirement replaced with simplified KYC intimation once every three years

Effective Date: 31st March 2026

Basis: Recommendations from High Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR) and stakeholder consultations

Impact: Significant reduction in compliance burden for directors across all companies.

MCA V3 Platform Transition

Circulars Issued: Multiple General Circulars to facilitate smooth migration to MCA V3 platform

Key Measures:
  • Relaxation of additional fees
  • Extended filing timelines
  • Allowance for AGMs/EGMs through Video Conferencing (VC) or Other Audio Visual Means (OAVM)

2. Reforms in Merger & Acquisition Framework

Fast-Track Expansion Widened scope for mergers and demergers under Section 233 of Companies Act, 2013

Amended Rules:

Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 amended on 4th September 2025

New Eligible Categories for Fast-Track Mechanism:

  • Two or more unlisted companies (excluding Section 8 companies) meeting prescribed thresholds
  • Holding and subsidiary companies (excluding cases where transferor is listed)
  • Two or more subsidiaries of the same holding company (excluding cases where transferor is listed)

Expected Impact: Significant reduction in time and cost for corporate restructuring.

3. Insolvency and Bankruptcy Code (IBC) Achievements

₹3.99 Lakh Crore Creditors’ realization through 1300 approved resolution plans (till September 2025)
ParameterValue/PercentageSignificance
Realization vs. Liquidation Value170.09%Substantial value preservation
Realization vs. Fair Value93.79%Near optimal value realization
Haircut vs. Fair Value~6%Minimal value erosion
Haircut vs. Admitted Claims~67%Realistic claim settlement

IBC Amendment Bill 2025

Introduced: Lok Sabha on 12th August 2025

Status: Under examination by Select Committee of Lok Sabha

Key Proposals:

  • Reduction of resolution timelines
  • Improved value maximization mechanisms
  • Strengthened governance framework
  • Creditor-initiated insolvency framework
  • Group insolvency provisions
  • Cross-border insolvency framework

Digital Transformation: Integrated IBC Platform

Under Development: Integrated digital platform for entire IBC ecosystem

Integration Scope: National Company Law Tribunal (NCLT), Insolvency and Bankruptcy Board of India (IBBI), Information Utilities (IUs), Insolvency Professionals (IPs)

Progress:

  • Project Monitoring Unit (PMU) onboarded: 16th December 2025
  • Request for Proposal (RFP) issued for System Integrator
  • Technical bid evaluation underway

Expected Benefits: Enhanced coordination, transparency, data availability, and process efficiency across insolvency value chain.

4. Investor Education and Protection Fund Authority (IEPFA)

Integrated Portal & Dedicated Call Centre

Launched: August 2025

Integration: MCA-21, NSDL/CDSL, and PFMS into single automated workflow

Performance (2025-26):

  • Total claims approved: 27,231
  • Portal approvals: 24,026 since launch
  • Transfer time reduced: Several months → 1-2 days

Technology Reforms:

  • Re-notified Form IEPF-5 & Electronic Verification Report (EVR) from 6th October 2025
  • Auto-fetching of bank details
  • Pre-validation of shareholding data

5. Competition Law Enforcement

Competition Commission of India (CCI) Achievements

Activity2025 Performance
Antitrust Cases Registered35 new cases
Antitrust Cases Decided19 cases resolved
Combination Notices Filed76 notices
Combination Notices Disposed78 notices processed
Outreach Programmes108 programmes conducted

Key Publication: Market Study on Artificial Intelligence and Competition (released 6th October 2025)

Focus Areas: AI market structures, emerging trends, competition concerns

6. Prime Minister Internship Scheme (PMIS)

7.3 Lakh+ Candidates created profiles in pilot phase (October 2024)

Scheme Overview

Announced: Union Budget 2024-25

Target: 1 crore+ internships over 5 years

Pilot Phase Performance:
  • Profiles created: 7.3 lakh candidates
  • Internship offers extended: 1.65 lakh
  • Interns joined: ~16,000 youth

Benefits to Interns:

  • Monthly stipend: ₹5,000 (DBT model)
  • One-time grant: ₹6,000 for incidental costs
  • Social security: PM Jeevan Jyoti Bima Yojana & PM Suraksha Bima Yojana coverage

Scheme Features:

  • Structured 12-month industry-linked internships
  • 25+ sectors covered (Automobiles, Hospitality, Banking, Manufacturing, FMCG, etc.)
  • Focus on inclusivity and skill development

7. Institutional Expansion & Strengthening

New Offices Operational from 1st January 2026

New Regional Directorates (RDs)
  • Chandigarh
  • Navi Mumbai
  • Bengaluru
New Registrar of Companies (RoCs)
  • Delhi
  • Mumbai
  • Kolkata
  • Noida
  • Nagpur
  • Chandigarh

Rationale: Rapid growth in corporate entities and future regulatory requirements

Objective: Enhanced regulatory reach and improved service delivery

Conclusion: Building a World-Class Corporate Ecosystem

The year 2025 marked significant strides in India’s corporate governance landscape through strategic reforms, digital transformation, and institutional strengthening. The Ministry of Corporate Affairs successfully implemented measures that balance regulatory oversight with ease of doing business.

Key achievements include the enhanced threshold for small companies benefiting millions of enterprises, simplified compliance requirements through KYC reforms, robust insolvency resolution recovering ₹3.99 lakh crore for creditors, and comprehensive digital integration across regulatory functions.

With the expansion of institutional infrastructure and focus on investor protection, India is poised to strengthen its position as a preferred global investment destination while ensuring transparent and efficient corporate governance for Viksit Bharat 2047.

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