The launch of action plan for startups in India on January 16th,
2016 ("Action Plan") has garnered an
overwhelming response from the startup community and the investors
alike. While the Action Plan had laid down a road map for wide
ranging reforms to give a boost to the startup culture in India,
the stakeholders eagerly awaited the fine print of these reform
measures. Our analysis of the Action Plan is available at
here. Soon after the announcement of Action Plan, the Ministry
of Corporate Affairs, vide its notification dated January 22, 2016,
had issued Companies (Incorporation) Amendment Rules, 2016
("Amendment Rules 2016") to the existing
Companies (Incorporation) Rules, 2014 ("Principal
Rules") which has brought few significant changes to
the Principal Rules. Amendment Rules 2016 is the second amendment
to the Principal Rules in furtherance to its objectives of ease of
business in India. Realizing the inefficiencies in the existing
systems causing inordinate
