New Delhi, Oct 14 (KNN) If the government  decriminalises two-thirds of offences under the Companies Act, it will be a good step, said a Lucknow based MSME entrepreneur.  

''It's a good step and this will help increase ease of doing business. The people who are not in corporate and afraid of doing business in corporate, this step will help to vanish that fear resulting them setting up a business in corporate,'' VK Aggarwal, Managing Director, Shashi Cables told KNN India.

''We must welcome this step by the government,'' Aggarwal, former president of industry body FISMEA added.

On being asked, whether this step will help in setting up more industries, Aggrawal said, "I won't vouch for this but of course, this will improve environment. People will get relief and there won't be any fear amongst them.''

According to media reports, the government has decided to decriminalise two-thirds of offences under the companies act as it looks to do away with jail term in over 40 sections off 66 where compounding is permitted.

Government has plan to introduce a bill to amend law in the winter session of the parliament.

This move likely to benefit 8 lakh of 11 lakh registered companies, which have turnover of up to Rs 2 crore and paid-up capital of up to Rs 50 lakh.   

Apart from these, corporate ministry seeking to lower penalty for small companies.

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