The Ministry of Corporate Affairs (MCA) implemented a comprehensive series of regulatory reforms throughout 2025, focusing on simplifying compliance procedures, strengthening corporate governance frameworks, and enhancing the overall business environment. These initiatives represent significant steps toward positioning India as a leading global destination for ease of doing business.

Enhanced Classification Thresholds for Small Companies

One of the most significant reforms introduced during 2025 was the revision of threshold limits for small company classification. Through a notification issued on December 1, 2025, the ministry substantially increased the eligibility criteria, expanding access to regulatory relaxations for a broader range of enterprises.

This enhancement significantly expands the number of companies eligible for regulatory relaxations, providing greater operational flexibility for medium-sized enterprises.

Streamlined Government Company Closure Procedures

The MCA amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, on December 31, 2025, to facilitate easier closure procedures for government companies. Under the revised framework, authorized representatives of central or state governments can now furnish indemnity bonds, enabling faster removal of company names from the register under Section 248(2) of the Companies Act. This procedural simplification is expected to reduce administrative burdens and accelerate the closure process for government entities.

Integrated IEPFA Portal Enhances Investor Services

The Investor Education and Protection Fund Authority launched an integrated portal in August 2025, accompanied by a dedicated call center to improve investor support services. The portal represents a technological advancement that consolidates multiple systems into a unified platform.

The automated workflow has dramatically improved efficiency, reducing post-approval transfer times for shares and dividends from several months to just 1-2 days.

Progress Under Insolvency and Bankruptcy Code

Significant developments occurred under the Insolvency and Bankruptcy Code (IBC) framework during 2025. By September 2025, substantial progress was recorded in resolution proceedings and creditor recoveries.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2025, was introduced in Parliament on August 12, 2025, with objectives to reduce timelines, improve value maximization, and strengthen governance frameworks.

Prime Minister Internship Scheme Implementation

The Prime Minister Internship Scheme (PMIS), announced in Union Budget 2024-25, made substantial progress during its pilot phase launched in October 2024. The scheme aims to provide over one crore internships over five years, addressing youth employment and skill development needs.

Participants receive financial support through direct benefit transfer mechanisms and comprehensive social security coverage under PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana.

These comprehensive reforms undertaken in 2025 demonstrate the government's commitment to improving the business environment, strengthening investor confidence, and enhancing India's position as a preferred destination for global business operations.

The Ministry of Corporate Affairs has introduced significant compliance relief for company directors by replacing the annual KYC filing requirement with a simplified once-in-three-years cycle under the Companies Act, 2013. This major regulatory change aims to reduce the administrative burden on directors while maintaining necessary oversight mechanisms.

Regulatory Framework Changes

The amendment follows a comprehensive review of Rule 12A of the Companies (Appointment & Qualification of Directors) Rules, 2014. The changes were developed based on recommendations from the High Level Committee on Non-Financial Regulatory Reforms and extensive stakeholder feedback received by the ministry.

Key Features of New KYC System

Under the revised framework, directors will submit a simplified KYC intimation once every three years instead of the previous annual requirement. The ministry has introduced a comprehensive revised KYC form that serves multiple functions beyond basic compliance verification.

The new form enables directors to:

• Complete mandatory KYC compliance requirements
• Update mobile numbers and email addresses
• Modify residential address information
• Reactivate Document Identification Number (DIN)

Verification Requirements

The amended rules establish specific verification protocols depending on the purpose of form submission. Digital signature verification by the DIN holder or director and professional certification will be mandatory only when the KYC form is submitted for updating mobile numbers, email addresses, or residential addresses. This targeted approach reduces unnecessary verification steps for routine compliance filings.

Transition and Coverage

All directors who have completed their KYC requirements to date are automatically covered under the new provisions. Their next KYC filing will be due by June 30, 2028, providing a clear timeline for compliance planning.

Directors who have not yet submitted their KYC forms retain the opportunity to reactivate their DINs under existing provisions until March 31, 2026. This transition period ensures that non-compliant directors can regularize their status before the new framework becomes fully operational.

Compliance Impact

The ministry emphasized that this amendment provides significant ease of compliance to directors across all companies. By reducing the frequency of mandatory filings from annual to triennial, the changes are expected to substantially decrease administrative costs and time commitments for directors while maintaining regulatory oversight standards.