New Delhi, March 23 (NationPress) On Monday, the Lok Sabha granted its endorsement for the Corporate Laws (Amendment) Bill, 2026 to be forwarded to the Joint Parliamentary Committee (JPC) for in-depth examination. The Finance Minister, Nirmala Sitharaman, presented the Bill, which seeks to modify the Limited Liability Partnership Act of 2008 and the Companies Act of 2013, proposing its submission to the JPC for a thorough review.

The intention behind this Bill is to enhance the ease of doing business, decriminalize minor infractions, substitute certain criminal penalties with civil fines, and lessen compliance obligations for small enterprises, startups, and agricultural companies established by farmers.

Prior to this, opposition members, including Congress's Manish Tewari, Sougata Ray from Trinamool Congress (TMC), and the DMK's Dr. T. Sumathy, voiced their dissent against the Bill's introduction. They contended that the proposed legislation undermines the principles of Corporate Social Responsibility. In response, the Finance Minister asserted that this amendment would not only draw in more investments but also improve corporate governance.

Sitharaman emphasized that this legislation was formulated after two years of extensive discussions. She noted that insights were gathered from industry representatives, professional organizations, legal and accounting specialists, and the general public before the Bill was introduced in the House.

The amendments are derived from the recommendations of the Company Law Committee (CLC), which was established by the government to enhance the ease of doing business for corporate entities. The 11-member CLC was formed in September 2019 and included notable figures such as former Lok Sabha Secretary General T.K. Viswanathan, Uday Kotak, Managing Director of Kotak Mahindra Bank, Shardul S. Shroff, Executive Chairman of Shardul Amarchand Mangaldas & Co, chartered accountant G. Ramaswamy, and Sidharth Birla, Chairman of Xpro India.

The CLC submitted its final report to the government on March 21, 2022. The CLC's recommendations were discussed by various stakeholders and reviewed by the High-Level Committee on Non-Financial Regulatory Reforms (HLC-NFRR), chaired by former Cabinet Secretary and current NITI Aayog member Rajiv Gauba.

In her budget speech for 2025-26, the Finance Minister announced the establishment of this committee, stating, “A High-Level Committee for Regulatory Reforms will be formed to review all non-financial sector regulations, certifications, licenses, and permissions,” on February 1 of the previous year.