Union finance minister Nirmala Sitharaman is set to introduce the Corporate Laws (Amendment) Bill, 2026 in the Lok Sabha on Monday. The bill aims to further ease of doing business, decriminalise minor offences, and reduce compliance burdens for small firms, startups, and producer companies.
The bill seeks to amend the Limited Liability Partnership (LLP) Act, 2008 and the Companies Act, 2013 to provide greater flexibility and ease of compliance. The amendments are expected to propose several changes, including decriminalisation of several provisions, regulatory ease for small firms, startups, and producer companies.
The bill is based on the recommendations of the Company Law Committee (CLC) constituted by the government to facilitate greater ease of doing business for business entities. The CLC has submitted its last report to the government, and the amendments are expected to strengthen the National Financial Reporting Authority (NFRA) and prohibit conversion of co-operative societies into a company.
