Building on earlier amendments to the Companies Act, 2013 (“Companies Act”), the recently introduced Corporate Laws (Amendment) Bill, 2026 (the “Bill”) is currently before a Joint Parliamentary Committee (“JPC”), after being tabled in the Lok Sabha. The Bill also seeks to amend the Limited Liability Partnership Act, 2008 (the “LLP Act”).
The Bill marks a clear shift from rigid compliance and the criminalisation of procedural errors to a more accommodating, trust-based approach.
Some of the key amendments proposed to the Companies Act are as follows:
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Decriminalisation of offences: Many offences under the Companies Act are being shifted from criminal liability (fine/prosecution) to civil penalties. This means companies will face fines instead of legal prosecution for technical or procedural lapses, making the regulatory environment more business-friendly.
