THEBUSINESSBYTES
BUREAU
NEW DELHI, AUGUST 3, 2026
A Parliamentary panel has
proposed a series of corporate law reforms aimed at strengthening ease of doing
business, including a fixed ₹50,000 penalty for select compliance violations,
in-kind CSR contributions for small companies, and easier relocation of foreign
firms to India's International Financial Services Centre (IFSC).
The Joint Committee on the
Corporate Laws (Amendment) Bill, 2026, chaired by BJP MP Sudheer Gupta,
submitted its report to the Lok Sabha on Monday, recommending that statutory
audit exemptions be limited to small businesses and not extended to public
companies.
The panel also proposed
allowing overseas companies to shift their domicile to the IFSC without winding
up operations in their home country, a move expected to boost India's appeal as
a global business hub.
Among other key recommendations are retaining the ₹10-crore net profit threshold for CSR applicability, permitting in-kind CSR spending by small firms, reducing the minimum age for managing directors to 18 years while raising the upper age limit to 75, and removing imprisonment provisions for non-compliance with NFRA orders as part of the government's decriminalisation drive.
The committee also called for dedicated Insolvency and Bankruptcy Code (IBC) benches at the NCLT, higher compounding limits of up to ₹1 crore, a fully digital compounding portal, and wider consultation with regulators, including Sebi, while framing corporate rules.
