MCA Amendments 2025: Advancing Transparency and Digital Compliance

MCA has introduced major amendments w.e.f June 2025, which are discussed in details below:

Companies (Accounts) Second Amendment Rules, 2025 Companies (Audit and Auditors) Amendment Rules, 2025

MCA mandates corporate reporting with New Disclosure Norms and makes it effective from July 14, 2025. These amendments aimed to provide greater transparency, enhance governance and extend accountability and plans a structured reporting. Let us discuss the key changes in detail below:

Additional Disclosures in Director's Report

• Reporting on Sexual Harassment Complaints: Pursuant to section pertaining to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, companies are now mandated to provide specific data, including: Number of sexual harassment complaints received, disposed off during the year and the number of cases pending for a period exceeding ninety days.
• Statement on Maternity Benefit Compliance: Companies are now expected to observe compliance with the provisions of the Maternity Benefit Act, 1961and confirm the same by including reporting in the Director's Report.
• Initiative to digitalize and structure data filing, MCA has introduced web-based Forms AOC-4, AOC-4 CFS, AOC-4 XBRL etc. It's a shift from the primary financial Statement to machine-readable format, enhancing efficient analysis by the authorities.
• The rules have officially replaced references to "Form" with "e-Form" (e.g., "e-Form AOC-1," "e-Form AOC-2"), underscoring the MCA's commitment to a fully digital filing system.

Companies (Audit and Auditors) Amendment Rules, 2025

Newly issued Companies (Audit and Auditors) Amendment Rules, 2025 shall come into effect from July 14, 2025. Amendments have been made to Rule 13(2) of the 2014 Rules whereby it is mandated that the report shall now be submitted electronically using the Form ADT-4Further, the Forms ADT-1, along with ADT-2, ADT-3 and ADT-4 have also been substituted.

Companies (Cost Records and Audit) Amendment Rules, 2025

Ministry of Corporate Affairs (MCA) issued a notification amending the Companies (Cost Records and Audit) Rules, 2014. These amendments, known as the Companies (Cost Records and Audit) Amendment Rules, 2025, to come into effect on 14th July 2025.

The key changes include the revision of Forms CRA-2 and CRA-4. Form CRA-2, which is used by companies to notify the Central Government about the appointment of a cost auditor under Section 148(3) of the Companies Act, 2013, has been updated.

Likewise, Form CRA-4, which is filed for submitting the Cost Audit Report under Section 148(6), has also been modified. These revisions aim to enhance and simplify compliance procedures under the Companies Act, 2013.

Companies (Registration Offices and Fees) Amendment Rules, 2025

MCA has issued the Companies (Registration Offices and Fees) Amendment Rules, 2025, which will be effective from July 14, 2025. These amendments primarily introduce a revised Form GNL-1, used for filing applications with the Registrar of Companies (ROC)

The revised form simplifies the application process for a range of purposes, including compounding of offences, requests for extension of annual general meetings, and submissions related to schemes of arrangement or amalgamation.

The revised Form GNL-1 asks for comprehensive details about the applicant-

• whether a company, foreign company, or other entity-
• the exact purpose of the application, and, in cases involving compounding of offences, specific information about the default.
• supporting documents such as Board Resolutions and detailed descriptions of the application.
• Additionally, the form includes sections for verification by authorized signatories and certification by practicing professionals, thereby enhancing the accuracy and accountability of the submissions.

Companies (Management and Administration) Amendment Rules, 2025

MCA has introduced the Companies (Management and Administration) Amendment Rules, 2025. Pursuant to Section 469 of the Companies Act, 2013, the MCA has announced that these amendments will come into force on July 14, 2025. The key change involves replacing the existing e-forms MGT-7, MGT-7A, and MGT-15, as listed in the Annexure of the Companies (Management and Administration) Rules, 2014, with newly revised versions. This update requires companies to adopt the new electronic formats for certain filings concerning corporate management and administration, aiming to streamline and modernize compliance procedures through enhanced digital filing systems.

Key Changes in MGT-7/MGT-7A as follows

• Tab for selecting type of filing whether original or revised form is being filed.
• SRN of MGT-7 filed earlier for same financial years
• Table asking for details of name, registered office latitude and longitude as on filing date and year end date.
• Photograph of registered office of Company showing external building & name prominently visible.
• Detailed summary of indebtedness for Debentures issued by the Company.

• Gender and body type bifurcation of category of promoters and other than promoters
• Addition of disclosure w.r.t FII's (Foreign Institutional Investor) holding shares of the Company

• Date of Meetings of Board, Committee and members meetings to be provided in excel format.
• Excel template provided for the List of Shareholders, debenture holders etc.

Form MGT-15, used for reporting resolutions passed at the Annual General Meeting (AGM), will now require:

Financial Year Information - Companies must specify the financial year relevant to the AGM, enhancing traceability and ensuring greater accuracy in regulatory records and filings.

Conclusion

The MCA has implemented the following amendments to promote greater transparency through detailed disclosures and to improve efficiency by transitioning to e-forms for structured reporting and assessment.

MCA Forms Enhancements & Changes

Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement.