Cabinet Approved Amendments to the Companies Law

To improve the ease of doing business, the Cabinet approved amendments to the companies law that do away with a mandatory declaration by a firm before commencing business.

The changes have also been cleared to fast-track the approval process for draft notifications aimed at granting exemptions from various provisions of the Companies Act.

The amendments were approved at a meeting of Union Cabinet, chaired by Prime Minister Narendra Modi this morning, and are now part of the Companies (Amendment) Bill,2014.

The amendments include “doing away with the requirement for filing a declaration by a company before commencement of business or exercising its borrowing powers”.

Besides, they will rationalise “the procedure for laying draft notifications granting exemptions to various classes of companies or modifying provisions of the Act in Parliament, in order to ensure speedier issue of final notifications,”

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