Govt Says Corporate Laws (Amendment) Bill to Ease Compliance, Speed Up Mergers

The Centre has said the Corporate Laws (Amendment) Bill, 2026 aims to improve ease of doing business, reduce litigation, and accelerate corporate restructuring. Replying to a starred question in the Lok Sabha, Finance and Corporate Affairs Minister Nirmala Sitharaman said the proposal to raise the paid-up share capital limit for a “small company” from Rs 10 crore to Rs 20 crore was needed as the existing ceiling had been reached. The change would also give the government flexibility to revise the threshold in line with business growth and economic expansion.

The government also highlighted its phased decriminalisation drive under the Companies Act, 2013 and the LLP Act, 2008, undertaken since FY15. It said the reforms have decriminalised several compoundable offences, reduced litigation, strengthened Corporate Governance, and promoted trust-based compliance while retaining strict action for serious violations.

On corporate restructuring, Sitharaman said the fast-track merger framework under Section 233 of the Companies Act has been progressively expanded—from small companies and holding-subsidiary mergers to start-ups, cross-border reverse flipping, and eligible unlisted companies. The framework now also allows deemed approval, ensuring eligible mergers are cleared within 60 days, making corporate reorganisations faster and more cost-effective.