Corporate Laws (Amendment) Bill Introduced in Lok Sabha
The Union Cabinet had already okayed the proposed Bill, aimed at further easing the compliance burden on businesses and advancing the government's agenda of decriminalising minor corporate offences
New Delhi: Union finance minister Nirmala Sitharaman on Monday introduced the Corporate Laws (Amendment) Bill, 2026, in the Lok Sabha, and later it was referred to the joint parliamentary committee (JPC) for further scrutiny. The bill, however, aims to amend the Limited Liability Partnership (LLP) Act, 2008 and the Companies Act, 2013. The decision was taken following a voice vote after the finance minister suggested it in the House.
The Union Cabinet had already okayed the proposed Bill, aimed at further easing the compliance burden on businesses and advancing the government's agenda of decriminalising minor corporate offences. The proposed amendments are expected to rationalise penalties, shift several minor procedural lapses from criminal liability to monetary penalties, and streamline regulatory processes to promote ease of doing business.
Sitharaman said that this legislation has been brought after two years of full deliberation. The finance minister further said that the recommendations of the Company Law Committee (CLC) and its reports have been fully taken on board. “The CLC had representatives from industry chambers and professional institutes, legal and accounting experts. The report was also placed on the website for public comments, and comments were received and then examined,” she added.
As per the government, the reforms are also aimed at improving the overall corporate compliance framework while reducing litigation and encouraging a more facilitative regulatory environment for companies and LLPs. “The Bill is aimed at promoting further ease of doing business and ease of living for corporates by decriminalising more provisions and amending certain other provisions,” Sitharaman said.
In the bill’s statement of objects and reasons, the minister also said, it is aimed at providing ease of compliance for ‘one person companies’, small companies, startups and producer companies.
The finance minister strongly refuted the allegations made by the Opposition members and said that the Bill has been introduced after two years of deliberations. “The apprehensions of the members were unfounded as the Bill seeks to amend only the criteria of net profits, not the entire clause related to corporate social responsibility (CSR),” she said.
Earlier, before its introduction, the opposition members, including Congress MP Manish Tewari, Sougata Ray of TMC and Dr T Sumathy of DMK, opposed the introduction of the bill. They alleged that the proposed legislation dilutes the provisions of Corporate Social Responsibility. However, Sitharaman replied, saying that the proposed amendment will not only attract more investments but also facilitate corporate governance.
