Corporate Affairs Ministry Reforms in 2025 Enhance Compliance and Governance for Businesses

The Ministry of Corporate Affairs (MCA) implemented several reforms in 2025 to simplify compliance and enhance corporate governance. A significant measure was raising the threshold for small companies. On December 1, 2025, the paid-up share capital limit was increased to Rs 10 crore, and the turnover threshold was set at Rs 100 crore. This change allows more companies to benefit from regulatory relaxations.

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In a move to streamline processes, the MCA amended the Companies Removal of Names of Companies from the Register of Companies Rules, 2016, on December 31. This amendment simplifies the closure procedure for government companies. Under the new rules, indemnity bonds can be provided by authorised representatives of central or state governments, facilitating quicker removal from the register under Section 2482 of the Companies Act.

Investor Support and Insolvency Code

The Investor Education and Protection Fund Authority launched an integrated portal in August 2025. This portal aims to expedite claim settlements and improve investor support. By integrating MCA-21, NSDL, CDSL, and PFMS into a single workflow, it reduces post-approval transfer time for shares and dividends from months to just 1-2 days. Since its inception, over 27,000 claims have been approved in this financial year.

Progress under the Insolvency and Bankruptcy Code (IBC) was also notable. By September 2025, creditors had realised Rs 3.99 lakh crore from 1,300 approved resolution plans. This amount represents 170.09% of liquidation value and nearly 94% of fair value. The Insolvency and Bankruptcy Code Amendment Bill, introduced on August 12, 2025, aims to reduce timelines and enhance governance.

Competition Law and Internship Scheme

The year-end review highlighted achievements in competition law through antitrust enforcement and merger control initiatives by the Competition Commission of India. Additionally, progress was noted under the Prime Minister Internship Scheme (PMIS), announced in the Union Budget 2024–25. The scheme targets over one crore internships over five years.

The PMIS pilot phase began in October 2024 with strong youth participation. Around 7.3 lakh candidates created profiles across two rounds, resulting in 1.65 lakh internship offers and approximately 16,000 candidates joining internships. Interns received a monthly stipend of Rs 5,000 via direct benefit transfer and a one-time grant of Rs 6,000 along with social security coverage under PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana.

These initiatives reflect the government's commitment to improving the business environment and strengthening investor confidence in India as a leading global destination for ease of doing business.

With inputs from PTI