Explore Business Standard
The government has notified rules expanding the scope of fast track mergers under the Companies Act, 2013, bringing in more categories of companies within the simplified route for amalgamations and demergers, an official statement said on Thursday. The move will provide quicker turnaround for corporate restructuring. The framework will particularly benefit unlisted entities and groups looking at internal reorganisations without the need for lengthy tribunal approvals. The Ministry of Corporate Affairs (MCA) has amended the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016, through a notification issued on September 4, 2025, following stakeholder consultations. The changes flow from the Union Budget 2025-26, which promised measures to ease doing business and cut delays in approvals. Under the revised framework, fast track mergers or demergers can now be undertaken two or more unlisted companies (other than section 8 companies) which meet prescribed thresholds of ..
More than 28 lakh companies are registered in the country and only 65 per cent of them or little over 18.1 lakh companies are active, according to official data. Among those registered under the Companies Act, 2013, just 5,216 are foreign companies and out of those, 63 per cent or 3,281 entities were active at the end of January. Latest data from the corporate affairs ministry also showed that a total of 16,781 companies were registered with a collective paid up capital of Rs 816.14 crore last month. "A total number of 28,05,354 companies were registered in the country as on 31st January, 2025, of which 65 per cent (18,17,222) companies stand active. There is an increase of 0.14 per cent in the total proportion of active companies with respect to registered companies when compared to December 2024," the ministry said in its latest monthly information bulletin. As many as 9,49,934 companies have been shuttered. In terms of sectors, the maximum number of active companies were in ...