Business Reform Action Plan: Driving State-Level Change
The Business Reform Action Plan (BRAP), launched in 2014, became the cornerstone of India’s Ease of Doing Business reforms. Implemented by DPIIT, BRAP evaluates States and Union Territories on regulatory efficiency, transparency and investor facilitation through evidence-based assessments and user feedback.
Seven editions of BRAP have been completed so far, encouraging competitive federalism and pushing state governments to streamline approvals, reduce timelines and digitise services at the grassroots level.
Corporate Law Reforms and Decriminalisation
Significant amendments to the Companies Act, 2013 between 2015 and 2020 addressed long-standing industry concerns. Technical and procedural violations were decriminalised, easing pressure on courts and the National Company Law Tribunal while promoting a compliance-based rather than punitive regime.
These changes were particularly beneficial for startups, small companies, One Person Companies and producer companies, allowing them to focus on growth rather than legal complexities.
LLP Reforms and Reduced Compliance Burden
The Limited Liability Partnership (Amendment) Act, 2021 further strengthened ease of doing business by decriminalising minor offences and introducing the concept of “Small LLPs”. This move lowered compliance costs and encouraged formalisation among small enterprises.
Private companies, government companies, charitable entities, Nidhis and IFSC companies also received targeted exemptions under Section 462 of the Companies Act, simplifying operations across diverse sectors.
Digital Governance and Faster Incorporation
Technology-driven reforms have been a major enabler. The Central Registration Centre, operational since 2016, offers time-bound incorporation services. The SPICe+ and AGILE PRO-S forms integrate multiple registrations, enabling businesses to begin operations immediately after incorporation.
For LLPs, the FiLLiP form provides a similar single-window experience, reinforcing India’s commitment to digital-first governance.
Fast-Track Mergers and Corporate Exit
The scope of fast-track mergers was expanded in 2021 and further broadened in 2025, allowing more companies to restructure efficiently. Enhanced “deemed approval” mechanisms have reduced procedural delays.
Meanwhile, the Centre for Processing Accelerated Corporate Exit (C-PACE), launched in 2023, offers a streamlined process for voluntary closure of companies and LLPs, ensuring ease of exit alongside ease of entry.
Jan Vishwas Act and Compliance Reduction
The Jan Vishwas (Amendment of Provisions) Act, 2023 marked a landmark step by decriminalising 183 provisions across 42 Central Acts. This reform reinforced trust-based governance and significantly improved Ease of Living and Ease of Doing Business.
Additionally, over 47,000 compliances have been reduced across ministries and states through simplification, digitisation and removal of redundant provisions.
Rising Number of Active Companies
The impact of these reforms is visible in corporate data. Active companies increased from 9.52 lakh in March 2014 to 18.5 lakh by March 2025, nearly doubling within a decade.
Data analytics under MCA21 V3, including Early Warning and Compliance Management Systems, now enable risk-based monitoring, ensuring transparency while supporting honest businesses.
Government’s Vision Ahead
The reforms, outlined in a written reply by Minister of State Shri Harsh Malhotra in the Lok Sabha, underscore the government’s long-term vision of creating a globally competitive business environment.
With continued focus on decriminalisation, digital processes and regulatory certainty, India aims to strengthen its position as a preferred destination for investment and entrepreneurship.
