Ministry of Corporate Affairs Reforms 2025: Key Initiatives and Achievements

The Ministry of Corporate Affairs (MCA) in 2025 implemented significant reforms to streamline business operations, improve compliance, and enhance the overall corporate environment in India.  

These initiatives are part of the government's efforts to make India a more attractive destination for business. 

Enhanced Thresholds for Small Companies 

On December 1, 2025, the MCA increased the threshold limits for small companies. The paid-up share capital limit was raised to ₹10 crore, and the turnover limit was increased to ₹100 crore. This change aims to ease compliance for a larger number of companies, allowing them to benefit from simplified regulatory requirements. 

Streamlined Closure Procedures for Government Companies 

Amendments to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, were made on December 31, 2025.  

These changes simplify the process for government companies to close operations by filing applications with Registrar C-PACE under section 248(2) of the Companies Act, 2013. An authorised representative from the government will now provide the indemnity bond, expediting the closure process. 

Read More: PFRDA Announces New Regulatory Framework to Strengthen NPS Growth! 

Reforms in Merger and Acquisition Framework 

In line with the Union Budget 2025–26, the MCA amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, on September 4, 2025.  

The amendments broaden the scope of fast-track mergers and demergers, allowing more unlisted companies and subsidiaries to utilise these mechanisms, thereby reducing time and costs associated with corporate restructuring. 

Investor Education and Protection Fund Authority (IEPFA) Initiatives 

In August 2025, the IEPFA launched an Integrated Portal and Dedicated Call Centre to expedite claim settlements and enhance investor support. The portal integrates MCA-21, NSDL/CDSL, and PFMS, significantly reducing transfer times for shares and dividends. 

Conclusion 

The Ministry of Corporate Affairs' reforms in 2025 have focused on simplifying compliance, enhancing corporate governance, and improving the ease of doing business in India. By increasing the thresholds for small companies, streamlining closure procedures, and reforming the merger and acquisition framework, the MCA has taken significant steps towards creating a more efficient and business-friendly environment. 

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