Corporate Laws (Amendment) Bill, 2026 introduced in Lok Sabha, aims to ease compliance and modernise business rules

The Corporate Laws (Amendment) Bill, 2026 was introduced in the Lok Sabha on Monday, proposing wide-ranging changes to India’s corporate regulatory framework with a focus on improving ease of doing business and reducing compliance burdens for companies.

‎The Bill, moved for introduction by Finance Minister Nirmala Sitharaman, seeks to amend the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. It incorporates key recommendations of the Company Law Committee’s 2022 report and is intended to address regulatory gaps, simplify procedures, and align corporate governance standards with evolving business requirements.

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‎According to available details, the proposed amendments focus on reducing compliance requirements, shifting certain offences from criminal to civil categories, and rationalising penalties for procedural violations. The Bill also promotes wider use of digital processes in corporate filings, continuing the government’s push toward digitisation of regulatory systems.

‎A key component of the legislation relates to Corporate Social Responsibility (CSR) provisions. Based on recommendations of the high-level committee on non-financial regulatory reforms led by Rajiv Gauba, the Bill is expected to introduce relaxations, including exemptions for certain categories of companies from mandatory CSR obligations. This is aimed at easing compliance pressure, particularly for smaller firms and businesses with limited operational capacity.

‎The proposed law also seeks to revise CSR thresholds and spending norms, indicating a broader restructuring of how corporate contributions to social development are regulated and monitored.

‎The Union Cabinet had approved the Bill on March 10, 2026, clearing the way for its introduction in Parliament. The reforms are part of an ongoing policy approach that prioritises decriminalisation of minor business-related offences, building on initiatives such as the Jan Vishwas framework, which aims to promote trust-based governance and reduce regulatory burden on businesses.

‎The government has said the changes are intended to make India a more attractive destination for investment by streamlining regulatory processes, reducing litigation risks, and encouraging entrepreneurship, while maintaining safeguards for transparency, accountability, and corporate governance standards.