MCA Revises Form CRL-1 to Strengthen Subsidiary Disclosure Norms

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  • Last Updated on 3 July, 2025

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Form CRL-1 Amendment 2025

Notification No. G.S.R. 427(E); Dated: 27.06.2025

1. Background – Regulation on Number of Layers of Companies

The Companies (Restriction on Number of Layers) Rules, 2017, issued by the Ministry of Corporate Affairs (MCA), aim to curb the misuse of complex corporate structures and prevent the creation of multiple layers of subsidiaries that may hinder transparency and regulatory oversight. Companies are required to report their layered structures through Form CRL-1, ensuring compliance with the prescribed limits.

2. Amendment Notified – 2025 Update to the Rules

The MCA has now notified the Companies (Restriction on Number of Layers) Amendment Rules, 2025, bringing changes to the compliance reporting format. This amendment specifically focuses on improving disclosure requirements related to the reporting of subsidiary structures.

3. Substitution of Form CRL-1

As part of the amendment, Form CRL-1 has been substituted with a revised version that mandates additional disclosures to enhance transparency and ease of data verification.

4. Key Additions in the Revised Form CRL-1

Under the new format, companies filing Form CRL-1 must now provide the following additional information:

  • Details of Subsidiary Companies – Including the name, CIN, and ownership details of each subsidiary.
  • Details of Holding Companies – Disclosure of parent entities and their control structures.
  • Registered Office Address – The full address of the company’s registered office is now a required field.
  • Company Email ID – The official email ID of the company must also be submitted.

These disclosures aim to create a more comprehensive compliance record, enabling regulators to better monitor complex corporate networks.

5. Objective and Impact of the Amendment

The revised form strengthens the oversight mechanism by:

  • Enhancing transparency in reporting corporate structures
  • Enabling data traceability for regulators and stakeholders
  • Supporting the Government’s efforts to prevent shell companies and illicit financial flows

6. Conclusion

With the introduction of the amended Form CRL-1, the MCA continues its efforts to promote corporate transparency and accountability. Companies must ensure timely and accurate filings under the revised framework to remain compliant and avoid regulatory consequences.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied