Centre rejigs RoC framework to make it friendlier, efficient

The ministry of corporate affairs has passed orders to roll out a revamped compliance and oversight system for companies and LLPs starting 1 January 2026-the biggest administrative shakeup in years aimed at improving both ease of doing business as well as regulatory efficiency, a person with direct knowledge of the decision said.

- Gireesh Chandra Prasad [e-mail]

The shakeup will see the creation of six new registrars of companies (RoCs)-officers who monitor companies' compliance with the Companies Act and LLP Act and three new regional directors (RDs), who oversee the work of RoCs. It has also redrawn jurisdictions across states to make regulation more local, responsive, and business-friendly.

The move comes as India sees a surge in new entities-nearly 150,000 companies and 75,000 LLPs are incorporated every year-creating pressure on the existing oversight system.

"The expanded workforce and reallocation of jurisdiction make RoCs and RDs more accessible to local businesses," the person cited above said on condition of not being named.

While officials say the restructuring will make corporate regulators more accessible and efficient, experts call it a timely response to India's fast-expanding business landscape.

"The restructuring of the RoC and regional director framework represents a strategic response to India's rapidly expanding corporate ecosystem," said Vikash Thakur, associate director at Nexdigm, a consultancy.