MCA May Amend Companies Act To Support MSMEs Affected By Trade Tariffs

The Ministry of Corporate Affairs (MCA) is considering steps to reduce compliance requirements for medium, small, and micro enterprises (MSMEs) amid concerns over US trade tariffs, official sources said.

The initiative aims to strengthen local industry resilience by improving the regulatory environment for small businesses. Proposed measures include amendments to the Companies Act to simplify certification procedures and eliminate certain compliance obligations specific to MSMEs. These potential changes are aligned with recommendations made in the expert committee report on company law, focused on enhancing the ease of doing business. The MCA is also engaging with the MSME Ministry to ensure coordinated implementation of these reforms.