Corporate Law Amendments: Enhancing Ease of Doing Business

The Ministry of Corporate Affairs (MCA) has been active in decriminalizing minor offenses under the Companies Act, aiming to promote the ease of doing business. However, governance standards have been tightened. The introduction of stricter KYC norms for directors and the requirement for dematerialization of shares for private companies are significant steps. Companies must ensure their statutory registers are up to date and that they are compliant with the significant beneficial ownership (SBO) rules. Regular secretarial audits are more important than ever to identify and rectify gaps.