The Government of India has undertaken a series of wide-ranging reforms since 2014 to strengthen the Ease of Doing Business and improve the overall Ease of Living, with a strong focus on decriminalization, digitization, and simplification of laws. These measures have resulted in a more transparent, efficient, and business-friendly regulatory environment across the country.
This information was shared by the Minister of State in the Ministry of Corporate Affairs and the Ministry of Road Transport and Highways, Shri Harsh Malhotra, in a written reply to a question in the Lok Sabha.
Business Reform Action Plan Driving State-Level Reforms
One of the flagship initiatives has been the Business Reform Action Plan (BRAP), launched in 2014 by the Department for Promotion of Industry and Internal Trade (DPIIT). The plan aims to reduce regulatory hurdles, enhance transparency, and lower compliance costs for businesses.
Under BRAP, States and Union Territories are evaluated based on evidence and user feedback, ensuring that reforms are effectively implemented at the grassroots level. So far, seven editions of BRAP have been completed, fostering competitive federalism and encouraging states to continuously improve their business ecosystems.
Companies Act Amendments to Reduce Compliance Burden
To further support businesses, the government amended the Companies Act, 2013 in 2015 and 2017. These changes addressed long-standing concerns raised by industry chambers and stakeholders, making corporate compliance simpler and more practical.
Subsequent amendments in 2019 and 2020 focused on decriminalizing technical and procedural violations, significantly reducing the burden on criminal courts and the National Company Law Tribunal (NCLT). These reforms particularly benefited Small Companies, One Person Companies (OPCs), startups, and Producer Companies by streamlining compliance requirements.
Reforms for LLPs and Small Businesses
The Limited Liability Partnership (Amendment) Act, 2021 extended similar relief to LLPs by decriminalizing minor offences. A new category of “Small LLP” was also introduced, offering reduced compliance requirements and lower fees to encourage formalization of small businesses.
Additionally, exemptions under Section 462 of the Companies Act were granted to private companies, government companies, charitable companies, Nidhis, and IFSC (GIFT City) companies during 2015, 2017, and 2020.
Boost to Startups and New Businesses
In a move aimed at encouraging entrepreneurship, the government removed incorporation fees for companies with authorized capital up to ₹15 lakh. This step significantly lowered entry barriers for startups and small businesses.
The government has also permitted direct listing of securities by Indian public companies in permissible foreign jurisdictions, a reform expected to boost “Brand India,” expand investor base, and provide alternative sources of capital, especially for technology-driven companies.
Fast-Track Mergers and Corporate Restructuring
Fast-track mergers were expanded in February 2021 to allow mergers between startups and small companies. The scope was further widened in September 2025, enabling more classes of companies to opt for this route.
Rules were also amended to ensure effective implementation of the “deemed approval” mechanism, helping companies complete mergers faster and at lower costs.
Digital Transformation of Corporate Processes
The government has emphasized digital governance to improve efficiency. The Central Registration Centre (CRC), operational since 2016, provides speedy incorporation-related services.
The introduction of SPICe+ along with AGILE PRO-S allows businesses to complete multiple registrations—such as PAN, TAN, GST, EPFO, ESIC, and bank account opening—through a single digital window. Similarly, the FiLLiPform streamlined LLP incorporation.
To facilitate smooth business exits, the Centre for Processing Accelerated Corporate Exit (C-PACE) was established in May 2023, enabling time-bound and hassle-free striking off of companies and LLPs.
Centralized Processing and E-Adjudication
Further strengthening compliance mechanisms, a Central Processing Centre (CPC) was set up in February 2024 for centralized processing of 12 non-STP forms.
In August 2024, the Companies (Adjudication of Penalties) Rules, 2014 were amended to mandate complete electronic adjudication under Section 454 of the Companies Act. The new e-adjudication platform provides end-to-end digital processes, including notices, hearings, orders, and payments, improving transparency and speeding up adjudication.
Jan Vishwas Act and Large-Scale Decriminalization
A major step toward improving Ease of Living and Ease of Doing Business was the enactment of the Jan Vishwas (Amendment of Provisions) Act, 2023. The Act decriminalized 183 provisions across 42 Central Acts, replacing criminal penalties with civil ones.
Under the broader initiative to reduce compliance burden, Central Ministries, Departments, and States/UTs have collectively eliminated or simplified over 47,000 compliances through digitization, decriminalization, and removal of redundant rules.
Sharp Rise in Active Companies
The impact of these reforms is evident in official data. As of March 31, 2014, India had 9,52,433 active companies. By March 31, 2025, this number had risen to 18,50,932, nearly doubling in just over a decade.
Advanced data analytics-driven features integrated into MCA21 V3, such as the Early Warning System and Compliance Management System, now enable risk-based monitoring and proactive compliance management.
Government Reaffirms Commitment to Business-Friendly Reforms
The government reiterated that these sustained reforms reflect its commitment to building a business-friendly environment that supports entrepreneurship, investment, and economic growth. By simplifying laws, embracing digital governance, and reducing fear of criminal penalties, India continues to move toward a more efficient and trust-based regulatory framework.
