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Major Update on Ease of Doing Business 2.0!

Published: 18 Dec, 2025

The Ministry of Corporate Affairs has taken significant steps to reduce the compliance burden on corporations in India — a move that will further strengthen our business ecosystem and support growth.

Key highlights:

Enhanced thresholds for Small Companies: Paid-up capital increased from ₹4 crore to ₹10 crore. Turnover limit raised from ₹40 crore to ₹100 crore. These changes, effective from 1 December 2025, bring more companies into the small company category, reducing their regulatory compliance load.

Continued de-criminalisation of technical and procedural violations, easing judicial burdens and promoting a more business-friendly regulatory environment.

Expansion of fast-track mergers and introduction of deemed approvals to streamline timelines and decisions.

Support for direct listing in permissible foreign jurisdictions – boosting Brand India and access to global capital.

Initiatives like C-PACE and CPC continue to simplify exit processing and form handling.

Digital transformation with MCA21 V3, data analytics modules and enhanced stakeholder support systems – classic steps towards smarter, faster compliance.

These reforms mark another stride in government efforts to modernise corporate laws, encourage entrepreneurship and attract investment.

Read the detailed release here: Press Information Bureau, Government of India View Press Release – PIB (MCA Compliance Reforms)

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