MCA Public Notice: Explanatory Note on Amendment in Companies (Incorporation) Rules, 2014
The Ministry of Corporate Affairs (MCA) has issued a public notice proposing to amend the Companies (Incorporation) Rules, 2014, to ease the process of setting up companies. Stakeholders can give their suggestions on these changes by May 9, 2026.
The main aim is to reduce paperwork, save time and reduce the compliance burden on stakeholders. Further, the ministry wants to advance the goal of facilitating Ease of Doing Business.
As a part of the amendment, many old incorporation-related forms will be combined into just two new forms, so companies do not have to fill out so many documents again and again. For example, forms like Forms INC-4, INC-22, INC-23 and INC-24 are proposed to be combined into a single form called “E-CHNG”. Additionally, forms like INC-6, INC-18, INC-12, INC-20, INC-27, RD-1 and INC-28 are proposed to be merged into a single form for “E-CON”
Some rules are also being removed to make things simpler. For example, directors may not need to submit affidavits for converting into a One Person Company (OPC), and certain penalties for OPCs may also be removed.
The provisions related to Name availability and name reservation will also become easier and clearer. KYC and document requirement rules for subscribers at the time of incorporation are being simplified, too.
Also, the notices can be sent through email and speed post instead of only registered post. Under the amendment, the companies will also get more choices. They can decide later whether they want registrations like EPFO, ESIC, and bank accounts.
The proposed amendments aim to simplify the current rules, reduce the number of forms, and encourage digital mode for communication.
For more information, refer to the Official Notification.
