It seeks to consolidate several forms required for incorporation into just two e-forms to cut multiplicity of filings and repetitive disclosures, according to the draft Companies (Incorporation) Amendment Rules, 2026, floated by the ministry. Similarly, four forms for changes in company name and registered office will be merged into just one, and another seven for company conversions and various approvals and orders will be consolidated into one. The ministry has sought stakeholder comments on the draft rules by May 9.
Separately, the ministry also put out a concept note seeking stakeholder consultations for rationalising various filings under the Companies Act. The ministry has also proposed to rationalise the KYC (know-your-customer) and other document requirements for subscribers at the time of company incorporation through amendment in rule 16. The draft rule proposes to liberalise provisions on company incorporation through SPICe+, an integrated web form, and allotment of the Director Identification Numbers.
The cap on the number of directors for whom the DIN can be applied at the time of company incorporation is proposed to be raised to five from three.
Relief for non-profit cos
The government proposes to amend rules to allow the conversion of a Section 8 company (non-profit) limited by guarantee to the one limited by shares.
“This marks a substantive reform in the non-profit corporate framework,” said Anjali Malhotra, Partner (Regulatory), at Nangia Global.”The introduction of a statutory mechanism for conversion between these two forms is intended to provide a recourse to existing Section 8 companies limited by guarantee to raise share capital while retaining their non-profit character,” said Malhotra.
Clauses that currently warrant manual attachment of memorandum of association or articles of association of these non-profit companies are proposed to be removed. The ministry has also proposed easier rules for filing of registered office-related documents, and the shifting of such offices from one state to another. It wants risk-based and need-based verification of the registered office of a company instead of mandatory visits by the company registrar. “Overall, the proposed amendments aim to simplify procedures, reduce the number of forms and duplicate filings, enable wider use of electronic communication, align with other regulatory frameworks (such as GST and IBC), and clarify grey areas like liability of deceased subscribers and documentation for registered offices,” the ministry said.