MCA Proposes Simplified Incorporation Rules | Cuts Compliance Burden

Policy-01/2/2025-CL-V-MCA-Part(2), Dated 08.04.2026

The Ministry of Corporate Affairs (MCA) has issued draft amendments to the Companies (Incorporation) Rules, 2014, aimed at streamlining the incorporation process and reducing compliance burden.

1. Consolidation of Forms

• Multiple existing forms are proposed to be merged into two simplified e-forms:

1. 1. E-CHNG
   2. E-CON

• Objective:

1. 1. Eliminate repetitive filings
   2. Simplify procedural requirements

2. Rationalisation of KYC and Documentation

The draft proposes:

• Simplified KYC norms
• Reduced documentation requirements
• Streamlined name reservation provisions

3. Removal of Certain Requirements

Key relaxations include:

• No affidavit requirement for conversion of One Person Company (OPC)
• Removal of DIR-12 filing at the time of incorporation

4. Flexibility in Registered Office Compliance

• Greater flexibility in:

1. 1. Registered office documentation
   2. Physical verification requirements

• Increased reliance on electronic communication

5. Updates to Specific Provisions

The amendments also:

• Revise provisions relating to:

1. 1. Shifting of registered office
   2. Section 8 companies

• Liberalise integration under SPICe+ framework, including increase in DIN (Director Identification Number) limits

6. Public Consultation

• MCA has invited comments from stakeholders
• Last date for submission: 9th May 2026

7. Conclusion

The proposed amendments reflect MCA’s intent to create a simplified, digital-first, and business-friendly incorporation regime, reducing procedural complexity while maintaining regulatory effectiveness.

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