MCA Plans Corporate Amendment Bill To Ease Compliance Burden

New Delhi, Feb 18 (KNN) The Ministry of Corporate Affairs (MCA) is preparing to introduce a Corporate Amendment Bill aimed at simplifying regulatory procedures and reducing the compliance burden on businesses.

“The forms are being rationalised, and more action on decriminalisation is being proposed for greater ease of doing business,” a senior official was quoted by Business Standard as saying.

The Cabinet note outlining comprehensive changes to both Companies Act and Limited Liability Partnership Act are learnt to have been finalised. Officials indicated that company forms are being rationalised and further decriminalisation of certain offences is being proposed to improve the ease of doing business.

IBC Amendments Likely in Budget Session

The government is also expected to introduce amendments to the Insolvency and Bankruptcy Code during the second half of the ongoing Budget session.

The senior official added, “We have accepted most of the recommendations made by the select committee on the proposed Bill.”

Reforms in Professional Services Framework

The MCA is considering changes to laws governing professional bodies such as Chartered Accountants, Cost Accountants and Company Secretaries. 

The proposed reforms are based on recommendations of a high-level committee that suggested enabling the creation of multidisciplinary professional firms in India.

Currently, Indian regulations do not allow professionals such as CAs, CSs, lawyers and actuaries to operate under a single firm structure, limiting their ability to offer integrated services similar to global firms. The proposed amendments seek to address these structural constraints.

Expanded Role for NFRA

Through amendments to the Companies Act, the MCA is also examining the possibility of granting greater functional flexibility to the National Financial Reporting Authority (NFRA). 

The proposal includes allowing the regulator to delegate certain functions beyond its executive board, enabling clearer separation between investigative and disciplinary roles.

(KNN Bureau)