The Corporate Laws (Amendment) Bill, 2026, that proposes changes to the Limited Liability Partnership (LLP) Act, 2008, as well as the Companies Act, has been introduced at the Parliament by Finance Minister Nirmala Sitaraman on Monday.
The Union Cabinet has already cleared the Bill, which seeks to further lighten the compliance load on companies while pushing forward the government’s agenda of decriminalising minor corporate violations.
It has now been sent to joint parliamentary committee (JPC) comprising members from both Houses of Parliament for a detailed analysis and recommendations.
“The Corporate Laws (Amendment) Bill, 2026 has now come here after two years of full deliberation. The recommendations of the Company Law Committee (CLC) and its reports have been fully taken on board. CLC had representatives from industry chambers and professional institutes, legal and accounting experts. The report was also placed on the website for public comments, and comments were received and then examined,” said Nirmala Sitharaman while presenting the bill.
The amendments are likely to recalibrate penalty provisions, replace criminal consequences for several minor procedural lapses with financial penalties, and simplify regulatory procedures, thereby supporting a more business-friendly environment.
The Corporate Laws (Amendment) Bill, 2026 also looks to revise the Limited Liability Partnership (LLP) Act, 2008, and the Companies Act to enhance the ease of doing business and plug gaps identified by the Company Law Committee in its 2022 report.
The bill has been opposed by the opposition and according to them the legislation sought to dilute the provisions of law under which companies mandatorily have to pay 2% of their profits towards corporate social responsibility (CSR).