The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for moving of the following Official Amendments in the Companies (Amendment) Bill, 2014 :-

i. Doing away with the requirement for filing a declaration by a company before commencement of business or exercising its borrowing powers and

ii. rationalizing the procedure for laying draft notifications granting exemptions to various classes of companies or modifying provisions of the Act in Parliament, in order to ensure speedier issue of final notifications.

These Official Amendments will address issues related to ease of doing business and put in place a speedier process for approval of draft notifications for providing exemptions etc. from specific provisions of the Act to a class of companies.

Removal of pre-commencement declaration speeds company start-up; streamlined exemption notification procedure accelerates regulatory relief for ease of doing business The proposal removes the requirement for companies to file a declaration prior to commencement of business or exercising borrowing powers, and rationalizes the procedure for laying draft notifications granting class-wide exemptions or modifying Act provisions to ensure speedier issuance of final notifications, thereby promoting ease of doing business.