MCA Draft Rules for Company Incorporation Propose Merging Multiple Forms Into Two To Ease Compliance Burden

Companies may soon be able to file just two forms instead of several specified incorporation-related filings, with the Ministry of Corporate Affairs proposing a significant overhaul to make compliance simpler.

The Ministry has put out the draft Companies (Incorporation) Amendment Rules, 2026, for public consultation, seeking feedback till May 9. The move follows a broader review of suggestions from stakeholders and is aimed at making incorporation processes smoother and less burdensome.

A key change is the plan to merge several existing forms into two streamlined e forms, E CHNG and E CON, to remove duplication and repetitive filings. E CHNG will handle changes such as registered office and name, while E CON will be used for conversions, approvals, and orders.

Some procedural requirements are also set to be eased. The draft removes the need for affidavits when converting into a One Person Company and drops provisions on criminal liability specific to such companies.

It also proposes to do away with the requirement of filing details of first directors separately, as this information is already captured through the SPICe plus system.

Rules around company names are also being reworked, with clearer language and more specific guidance on trademark-related objections.

Applicants may also be allowed to withdraw reserved names before incorporation or a change of name.

Documentation requirements at the time of incorporation are set to be simplified, with clearer norms for identity and residence proof. The list of acceptable documents for registered offices is also being widened to cover different types of premises, including rented spaces and coworking setups.

The draft introduces a new provision to deal with cases where a subscriber dies before paying for shares, making the legal representative responsible for the unpaid amount while allowing them to assume the rights attached to those shares.

Communication requirements are being updated as well. In several instances, sending notices by registered post is proposed to be replaced with speed post and email.

The approach to physical verification of registered offices is also being made more flexible, allowing checks to be carried out based on risk rather than as a routine requirement.

Rules for shifting registered offices across states are proposed to be eased in certain situations, including cases where inquiries are pending but no prosecution has been initiated. The draft also raises the limit on the allotment of Director Identification Numbers at the time of incorporation from three to five.