The Ministry of Corporate Affairs (MCA) enacted a package of reforms in 2025 aimed at simplifying compliance, strengthening corporate governance and improving the ease of doing business in India. Senior officials said the measures, announced through notifications and rule changes during the year, are designed to reduce regulatory burdens on smaller firms while speeding up investor support mechanisms.
MCA reforms 2025 drive wider regulatory relief
One of the most consequential changes raised the thresholds for classification as a small company. With the paid-up share capital limit increased to Rs 10 crore and the turnover ceiling raised to Rs 100 crore, a substantially larger cohort of firms now qualify for lighter compliance norms. The move is expected to ease filings and governance burdens for thousands of entities, improving operational agility for growing businesses.
The ministry also amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 to facilitate quicker closure of government companies. The revised rules allow authorised representatives of central and state governments to furnish indemnity bonds when seeking removal under Section 248(2) of the Companies Act, shortening administrative timelines for strike-off proceedings.
Investor support was enhanced with the launch of an integrated portal by the Investor Education and Protection Fund Authority (IEPFA) in August 2025, supported by a dedicated call centre. The portal automates workflows by integrating MCA-21, NSDL, CDSL and PFMS, cutting post-approval transfer time for shares and dividends from months to one to two days. Officials report that more than 27,000 claims have been approved since the portal went live in the current financial year.
Significant gains were also recorded under the Insolvency and Bankruptcy Code (IBC). Up to September 2025, 1,300 resolution plans were approved, with creditors realising Rs 3.99 lakh crore — about 170.09 per cent of liquidation value and nearly 94 per cent of fair value. To build on this momentum, the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 was introduced in Parliament in August to shorten timelines, enhance value realisation and strengthen governance safeguards for resolution processes.
The year’s review noted active antitrust enforcement and merger control work by the Competition Commission of India, as well as advocacy initiatives to preserve competitive markets. Policy-makers said these efforts are part of a broader push to make India more attractive for domestic and foreign investment.
On the skills and youth engagement front, the Prime Minister Internship Scheme (PMIS) pilot — announced in the Union Budget 2024–25 and rolled out in October 2024 — continued into 2025. The pilot registered 7.3 lakh candidate profiles over two rounds, with 1.65 lakh internship offers extended and roughly 16,000 interns joining placements. Interns received monthly stipends by direct benefit transfer, a one-time grant and social security coverage under national micro-insurance schemes.
Officials said the package of reforms underscores the government’s commitment to deepen investor confidence, reduce friction in corporate processes and position India among leading global destinations for ease of doing business. Market participants and industry bodies will watch implementation closely to assess the reforms’ impact on compliance costs and investment flows in the coming quarters.
Key Takeaways:
- MCA reforms 2025 raise small company thresholds to Rs 10 crore paid-up capital and Rs 100 crore turnover, widening regulatory relief.
- An integrated IEPFA portal links MCA-21, NSDL, CDSL and PFMS to cut post-approval transfer times to 1–2 days; over 27,000 claims approved in the current year.
- IBC progress: 1,300 resolution plans approved, creditors realising Rs 3.99 lakh crore, and an amendment bill introduced to shorten timelines and strengthen governance.
- Additional measures ease closure of government companies and expand youth engagement via the Prime Minister Internship Scheme.
