Review 2025: Corporate affairs ministry eases compliance, raises small company limits

The Ministry of Corporate Affairs rolled out a series of reforms in 2025 aimed at simplifying compliance, strengthening corporate governance and improving the ease of doing business, according to its year-end review.

One of the key measures during the year was the enhancement of threshold limits for the classification of small companies. Through a notification issued on December 1, 2025, the ministry increased the paid-up share capital limit to Rs 10 crore and the turnover threshold to Rs 100 crore, significantly expanding the number of companies eligible for regulatory relaxations.

The MCA also amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, on December 31, to provide an easier procedure for the closure of government companies, according to a statement issued by the ministry.

Under the revised norms, indemnity bonds can now be furnished by authorised representatives of the central or state governments, enabling faster removal of their names from the register under Section 248(2) of the Companies Act.

The year-end review also cited the launch of an integrated portal and a dedicated call centre by the Investor Education and Protection Fund Authority to enhance investor support.

The IEPFA portal, launched in August 2025, enables faster claim settlement by integrating MCA-21, NSDL, CDSL and PFMS into a single automated workflow. This has reduced the post-approval transfer time for shares and dividends from several months to 1–2 days. Since its launch, more than 27,000 claims have been approved in the current financial year so far.

Significant progress was also reported under the Insolvency and Bankruptcy Code (IBC). Till September 2025, a total of 1,300 resolution plans were approved, with creditors realising Rs 3.99 lakh crore, representing 170.09 per cent of liquidation value and nearly 94 per cent of fair value.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, was introduced in Parliament on August 12, 2025, with the objective of reducing timelines, improving value maximisation and strengthening governance, the statement said.

The review also highlighted achievements under competition law, including antitrust enforcement, merger control and advocacy initiatives by the Competition Commission of India.

Progress under the Prime Minister Internship Scheme (PMIS), announced in the Union Budget 2024–25, was also outlined. The scheme aims to provide over one crore internships over five years.

During the pilot phase launched in October 2024, around 7.3 lakh candidates created profiles across two rounds. A total of 1.65 lakh internship offers were extended, with around 16,000 candidates joining internships.

Interns received a monthly stipend of Rs 5,000 through the direct benefit transfer mechanism, along with a one-time grant of Rs 6,000 and social security coverage under the PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana.

These initiatives were undertaken in 2025 to deepen the government’s commitment to improving the business environment, strengthening investor confidence and positioning India among the leading global destinations for ease of doing business, the review said.

(With inputs from agencies)