Finance Minister Nirmala Sitharaman is scheduled to introduce the Corporate Laws (Amendment) Bill, 2026 in the Lok Sabha on Monday. The proposed legislation seeks to overhaul India’s corporate regulatory framework to improve ease of doing business and reduce compliance burdens.
The Bill proposes amendments to the Companies Act, 2013 and the Limited Liability Partnership Act, 2008, drawing on key recommendations made by the Company Law Committee in its 2022 report. It aims to plug regulatory gaps, simplify procedures and align corporate governance practices with the changing needs of businesses.
Officials said the proposed changes focus on easing compliance requirements by reclassifying certain offences from criminal to civil in nature and rationalising penalties for procedural lapses. The legislation also seeks to boost digitisation by expanding online filing processes, in line with the government’s broader push for technology-driven governance.
Corporate Social Responsibility (CSR) provisions form a key part of the proposed reforms. Based on suggestions from a high-level panel on non-financial regulatory reforms led by Rajiv Gauba, the Bill is expected to introduce relaxations, including exempting certain categories of companies from mandatory CSR obligations. The move is aimed at reducing compliance pressure, particularly on smaller and less resource-intensive firms.
At the same time, the Bill proposes adjustments to CSR thresholds and spending norms, indicating a shift in how corporate contributions to social development are structured and monitored.
The Union Cabinet cleared the proposed legislation on March 10, 2026, setting the stage for its introduction in Parliament. The reforms build on the broader approach of decriminalising minor business-related offences, a process advanced under the Jan Vishwas Act, which seeks to promote trust-based governance and reduce regulatory overreach.
The proposed amendments come as part of ongoing efforts to make India a more business-friendly destination by streamlining regulations, lowering litigation risks and encouraging entrepreneurship, while ensuring transparency and accountability in corporate functioning.