The Corporate Laws (Amendment) Bill, 2026 is being reviewed by the Joint Committee of Parliament (JPC), which has proposed a number of changes to streamline corporate compliance, make it easier to do business in India, and improve the country’s system of corporate governance. Having reviewed proposed changes to the Companies Act, 2013 and the Limited Liability Partnership (LLP) Act, 2008, the Committee submitted its findings to both Houses of Parliament.
A number of parties, including government agencies, regulators, trade groups, and legal professionals, were consulted by the panel before the recommendations were made. It supported efforts to make it easier for law-abiding businesses to comply, to encourage fair regulatory enforcement, and to make civil penalties the norm rather than criminal prosecution for some procedural infractions.
While maintaining strict action against offences involving fraud or problems harming public interest, the Committee backed the government’s plan to decriminalise minor procedural defaults. It claimed the strategy will make it easier for businesses to operate while also making sure regulators are held to account.
The panel also agreed with suggestions to give producer companies, small businesses, start-ups, and one-person companies more leeway in how they run their operations. It claimed the adjustments will lessen needless compliance burdens while increasing operating efficiency.
The Committee’s recommendation to streamline the incorporation process for limited liability partnerships (LLPs) is to limit the application of professional certification requirements to situations in which such experts are actively involved. It claimed the plan will lessen the need for procedures while keeping essential protections in place.
In addition, the Committee emphasised the need for an open and unified regulatory structure for LLP provisions pertaining to the International Financial Services Centre. The report urged that appropriate ministries, regulators, and stakeholders be consulted in order to draft subordinate laws and procedural guidelines in a timely manner.
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