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. E-CHNG
2. E-CON

Objective:

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. 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. 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.