To further improve ease of doing business, the government is considering amendments to the Companies Act, Corporate Affairs Minister Arun Jaitley on Tuesday said.
The Companies Law Committee, which submitted its report to the government on February 1, has suggested amendments to 78 sections of the Act, excluding consequential amendments in other sections.
The panel had looked into issues arising from the implementation of the Companies Act, 2013.
To a query on whether the government is considering amending the Companies Act so as to make doing business easier, Jaitley replied in the affirmative.
He said around 1,200 comments were received on the report submitted by the Companies Law Committee (CLC).
“The comments were considered by the government while finalising its views on accepting the recommendations of the CLC. As per requirements, inter-ministerial consultation has to be completed before any further action,” Jaitley said in a written reply to the Lok Sabha on March 4.
Key recommendations made by the panel include simplifying private placement process, easing incorporation process and removing the restriction on layers of subsidiaries and investment companies.Most provisions of the Act came into force from April 1, 2014.
The Corporate Affairs Ministry has set up a Central Registration Centre (CRC) for faster processing of applications for availability of names and it is being planned to extend the services to incorporation of companies after necessary modifications in the MCA 21 system.
MCA 21 is the e-platform for companies to make their statutory filing to the ministry.
PTI
