 "MCA eases KYC compliance for directors, shifts filing to once in 3 years")
The Centre has relaxed KYC (know your customer) norms for directors of private companies and made it easier for ailing government companies to shut operations as part of its continued efforts to ease business compliance in the country.
According to a notification issued by the Ministry of Corporate Affairs (MCA), company directors will now have to file for KYC once every three years, instead of every year.
And in case there is a change in personal information of the director such as phone number, email or residential address, then the director has to submit the changes within 30 days of the change, MCA has notified.
“Every individual who holds a Director Identification Number as on 31st March of the financial year, shall file KYC intimation
in Form no DIR-3 KYC Web to the Central government on or before 30th June of the immediately following every third consecutive financial year,” the MCA notification dated December 31, 2025 said.
Siddartha Karnani, partner, King Stubb & Kasiva, Advocates and Attorneys, said, “This reflects a calibrated, risk-based regulatory approach. It eases the compliance burden on both customers and regulated entities, particularly where customer profiles and transaction patterns remain stable, without diluting the core objectives of anti-money laundering and counter-terrorist financing norms.”
The MCA, in a statement, said that the changes have been made on the recommendation made by the High Level Committee
on Non-Financial Regulatory Reforms and suggestions received from stakeholders, in consultation with concerned ministries.
“This amendment is aimed at providing significant ease of compliance to directors in all companies,” MCA said.
The MCA has also provided for easier procedures for closure of government companies filing applications with Registrar under Section 248(2) of the Companies Act.
The amendment provides that in such cases, the indemnity bond in respect of one or more directors appointed or nominated
by the Central government or state government shall be given by an authorised representative, not below the rank of Under Secretary on behalf of the Company.
“This amendment is aimed at faster closure of government companies which are eligible to apply for removal of their names from the register of companies as per provisions of section 248(2) of the Companies Act, 2013,” the ministry said.
On Wednesday, the MCA had announced the opening of three new Regional Directorates (RDs) and six new Registrar of Companies with effect from 16th February, 2026 for regulatory facilitation.
ICAI defers fourth phase of peer review mandate
The Institute of Chartered Accountants of India (ICAI) has pushed the date for a peer review certificate for auditors who propose to undertake audits of branches of public sector banks by a year to December 31, 2026.
Units (Auditors) rendering attestation services and having three or more partners also need to have a Peer Review Certificate before accepting any Statutory audit from December 31, 2026 instead of January 1, 2026, ICAI said.
The Peer Review Board was established in 2002, recognising the need to ensure the quality of services provided by practicing Chartered Accountants.
Sebi with effect from April 1, 2010, has made it mandatory for the listed entities that Limited Review or Statutory Audit Reports submitted to the concerned stock exchanges shall be given only by those auditors who have subjected themselves to peer review process and who hold a valid certificate issued by the Peer Review Board of the Institute. Suggested changes
Change in personal information has to be submitted by the director within 30 days
Those with a Director Identification Number should file KYC intimation on or before June 30
Amendment eases compliance without diluting anti-money laundering and counter-terrorist financing norms
MCA has also provided for easier procedures for closure of government companies