In continuation of its efforts to enhance ease of doing business in India and the decision taken by the Union Cabinet on December 2, 2014 had decided to introduce the Companies (Amendment) Bill, 2014 (“Bill”) suggesting certain amendments to the Companies Act in Parliament (covered in our earlier newsletter of December 2014), the Union Cabinet in its meeting held on April 29, 2015, granted approval to move certain amendments to the Bill.

The approved amendments include discarding of the requirement of filing a declaration with the Registrar of Companies by a company before commencement of business or while exercising its borrowing powers. It is also proposed to rationalise a procedure for formulating draft notifications exempting certain classes of companies from specific provisions of the Companies Act or in the alternate modifying the Companies Act to ensure swifter issuance of final notifications.

Relaxations as were proposed by the Bill late last year have been eagerly awaited by the industry to smoothen the process of doing business in India.