MCA Proposes Merging 11 Incorporation Forms into 2: Draft Companies (Incorporation) Amendment Rules 2026 Explained
Key Takeaways
- MCA issued a public notice on April 8, 2026 proposing the draft Companies (Incorporation) Amendment Rules, 2026, with comments due by May 9, 2026.
- 11 incorporation-related forms will be consolidated into just 2 e-forms: “E-CHNG” (for registered office and name changes) and “E-CON” (for conversions, approvals, and orders).
- DIN allotment limit increased from 3 to 5, allowing individuals to hold up to 5 Director Identification Numbers.
- Registered office verification becomes more flexible, with physical verification no longer mandatory in all cases.
- Optional integration with EPFO, ESIC, and bank account opening at the time of incorporation will reduce post-incorporation compliance steps.
What Happened: MCA Proposes Biggest Overhaul of Incorporation Rules Since 2014
On April 8, 2026, the Ministry of Corporate Affairs (MCA) issued a public notice along with a detailed explanatory note, proposing the draft Companies (Incorporation) Amendment Rules, 2026. These amendments, if notified, will substantially modify the Companies (Incorporation) Rules, 2014, which govern how companies are formed, named, registered, and converted in India.
The draft has been published on the MCA website and through the official X (Twitter) account of the Ministry (@MCA21India). Stakeholders have been invited to submit comments through the MCA e-Consultation Module by May 9, 2026.
The proposals follow a comprehensive review of stakeholder suggestions, industry feedback, and internal recommendations gathered since the launch of the MCA21 V3 portal. The stated objective is to streamline company incorporation, reduce compliance burden, and promote ease of doing business in India.
Why This Matters: From 11 Forms to 2
Currently, companies need to file different forms for different types of changes, conversions, and approvals related to incorporation. This means navigating multiple form formats, paying separate fees, and managing multiple SRN (Service Request Number) tracking processes. The proposed consolidation into just two e-forms, E-CHNG and E-CON, represents the most significant simplification of corporate filing procedures since the original Companies (Incorporation) Rules, 2014 were notified.
For CAs, Company Secretaries, and founders, this means fewer forms to learn, fewer filings to track, and a more streamlined experience on the MCA21 V3 portal.
Detailed Analysis of All Proposed Changes
1. Form Consolidation: 11 Forms Merged into 2
The most impactful proposal is the consolidation of 11 existing forms into two simplified e-forms:
E-CHNG (Changes in Registered Office and Name)
This single form will replace:
| Current Form | Current Purpose |
|---|---|
| INC-4 | Change of name (new name allotment) |
| INC-22 | Notice of situation of registered office and verification |
| INC-23 | Application to Regional Director for shifting registered office |
| INC-24 | Application for approval of Central Government for change of name |
After the amendment, a company wanting to change its registered office address or its name will file a single E-CHNG form instead of navigating between four different forms.
E-CON (Conversions, Approvals, and Orders)
This single form will replace:
| Current Form | Current Purpose |
|---|---|
| INC-6 | One Person Company (OPC) conversion to private/public company |
| INC-18 | Application to Central Government for conversion of section 8 company |
| INC-12 | Application for licence under Section 8 |
| INC-20 | Intimation to ROC of revocation of licence under Section 8 |
| INC-27 | Conversion of public company into private company |
| RD-1 | Application to Regional Director |
| INC-28 | Filing of order of Regional Director or Central Government |
Whether you are converting an OPC to a private company, applying for a Section 8 licence, converting a public company to a private company, or filing a Regional Director’s order, a single E-CON form will handle all these scenarios.
2. DIN Allotment Limit Increased from 3 to 5
The current rules allow the allotment of a maximum of 3 Director Identification Numbers (DINs) at the time of incorporation through the SPICe+ form. The draft proposes increasing this limit to 5.
Practical impact: Startups incorporating with a larger founding team will no longer need to separately apply for DINs for additional directors after incorporation. A company can now have all 5 initial directors receive their DINs in a single incorporation filing. This saves time and eliminates the need for separate DIR-3 applications post-incorporation.
3. Flexible Registered Office Verification
Currently, the ROC may require physical verification of the registered office address after incorporation. The draft proposes making this verification more flexible:
- Physical verification will no longer be mandatory in all cases
- Alternative verification methods may be accepted
- Documentation requirements for proving registered office occupancy may be relaxed
This is particularly beneficial for startups operating from co-working spaces or virtual offices where traditional utility bill and rental agreement documentation may not always be readily available in standard formats.
4. Streamlined Requirements for Section 8 Companies
Section 8 companies (non-profit entities incorporated under the Companies Act for promoting commerce, art, science, charity, or other useful objects) face specific additional compliance requirements. The draft proposes:
- Simplified documentation for Section 8 licence applications
- Streamlined conversion procedures for Section 8 companies
- Clearer rules for revocation of Section 8 licences
This will benefit NGOs, foundations, and social enterprises that are structured as Section 8 companies.
5. Liability of Deceased Subscribers
The draft introduces a new rule addressing the liability of deceased subscribers to a Memorandum of Association. Currently, the law is unclear on what happens to the subscription money commitment when a subscriber dies between the date of signing the MoA and the date of incorporation.
The new rule will provide clarity on:
- Whether the subscription commitment passes to the legal heirs or estate
- The timeline and process for settling the deceased subscriber’s obligations
- The impact on the incorporation process if a subscriber dies before the company is registered
6. Name Reservation Simplification
The draft proposes changes to the name reservation process:
- Clearer trademark objection handling: Enhanced clarity on how trademark-related objections to proposed company names will be processed
- Name withdrawal facility: Companies will be able to withdraw a reserved name, freeing it for other applicants
- Rationalised procedures: The overall name reservation process will be simplified
7. Optional Integration: EPFO, ESIC, and Bank Accounts
One of the most practically useful proposals is optional integration of the following registrations at the time of incorporation:
- EPFO (Employees’ Provident Fund Organisation) registration: Currently done separately after incorporation
- ESIC (Employees’ State Insurance Corporation) registration: Currently requires a separate application
- Bank account opening: Companies currently incorporate first, then separately approach banks
If this integration is implemented, a founder filing SPICe+ for incorporation could simultaneously apply for EPFO registration, ESIC registration, and initiate the bank account opening process. This could save 2 to 4 weeks of post-incorporation compliance time.
8. Electronic Communication Preference
The draft proposes replacing registered post with speed post and email as the preferred modes of communication. This modernises the communication framework and reduces the reliance on traditional postal services for official correspondence related to incorporation matters.
9. Rationalised Public Notice Timelines
Timelines for public notices related to incorporation matters (such as name change, registered office shifting, and company conversion) are proposed to be rationalised. This means shorter or more streamlined notice periods where feasible, reducing the overall time required to complete these corporate actions.
10. Removal of Redundant Provisions
The draft proposes removing several provisions that are no longer practically necessary:
- Affidavit for OPC conversion: The requirement for filing an affidavit during One Person Company conversion is proposed to be eliminated
- Certain director-related filings: Redundant director-related documentation requirements are proposed to be removed
What This Means for Different Stakeholders
For Chartered Accountants and Company Secretaries
- Fewer forms to master: Instead of tracking 11 different forms, you will need to learn 2 new consolidated forms
- Faster client service: One filing instead of multiple filings for common corporate actions
- Submit comments by May 9: If you have practical suggestions based on your filing experience, submit them through the MCA e-Consultation Module
For Startup Founders
- Faster incorporation: With DIN allotment for 5 directors and optional EPFO/ESIC/bank integration, the incorporation-to-operational timeline could be significantly shortened
- Lower compliance cost: Fewer separate filings mean fewer professional fees for each individual filing
- Flexible registered office rules: Easier to incorporate with a co-working space or virtual office address
For MSMEs and Existing Companies
- Simpler name changes: Single E-CHNG form instead of multiple forms
- Easier conversions: Converting from OPC to private company or public to private will require just one E-CON form
- Electronic communication: Reduced reliance on postal correspondence with ROC
Timeline and Next Steps
| Date | Action | Who Should Act |
|---|---|---|
| April 8, 2026 | Public notice and draft rules published | MCA |
| By May 9, 2026 | Submit comments via MCA e-Consultation Module | All stakeholders (CAs, CS, industry bodies, founders) |
| After May 9, 2026 | MCA reviews comments and finalises rules | MCA |
| Date TBD | Final notification of amended rules | MCA |
| Date TBD | MCA21 V3 portal updated with new forms | MCA/NIC |
How to Submit Your Comments
- Visit the MCA website: mca.gov.in
- Navigate to the e-Consultation Module
- Select the draft Companies (Incorporation) Amendment Rules, 2026
- Submit your suggestions and comments
- Deadline: May 9, 2026
Comparison: Current Rules vs. Proposed Rules
| Feature | Current Rules (2014) | Proposed Amendment (2026) |
|---|---|---|
| Forms for changes (name, office) | 4 separate forms (INC-4, 22, 23, 24) | 1 form (E-CHNG) |
| Forms for conversions/approvals | 7 separate forms (INC-6, 12, 18, 20, 27, 28, RD-1) | 1 form (E-CON) |
| DIN allotment at incorporation | Maximum 3 | Maximum 5 |
| Registered office verification | Physical verification may be required | Flexible verification methods |
| EPFO/ESIC integration | Separate post-incorporation process | Optional at incorporation |
| Communication mode | Registered post | Speed post and email |
| OPC conversion affidavit | Required | Proposed to be removed |
| Name withdrawal | Not available | Proposed |
Frequently Asked Questions (FAQ)
Q1: Are these changes already in effect?
No. The MCA has published a draft notification dated April 8, 2026 for public consultation. These rules are not yet in force. They will take effect only after the MCA finalises the rules based on stakeholder feedback and issues the final notification in the Official Gazette.
Q2: When is the deadline to submit comments?
Stakeholders must submit their comments through the MCA e-Consultation Module at mca.gov.in by May 9, 2026.
Q3: Will E-CHNG and E-CON replace SPICe+ for new incorporations?
No. SPICe+ (INC-32) remains the form for new company incorporation. E-CHNG and E-CON replace post-incorporation forms used for changes, conversions, and approvals. They handle modifications to existing companies, not the creation of new ones.
Q4: How does the DIN allotment increase benefit startups?
Currently, only 3 directors can receive DINs during incorporation via SPICe+. If a startup has 4 or 5 co-founders who all need to be directors, the additional directors must file separate DIR-3 applications after incorporation. With the proposed increase to 5, all founding directors can receive their DINs in a single filing, saving time and fees.
Q5: What is the practical impact of optional EPFO/ESIC integration?
If implemented, a company could complete EPFO registration, ESIC registration, and bank account opening as part of the incorporation process itself. Currently, these are separate post-incorporation steps that can take 2 to 4 weeks. The integration could cut the incorporation-to-operational timeline significantly.
Q6: Does this affect LLPs?
No. The Companies (Incorporation) Rules, 2014 and the proposed amendments apply only to companies incorporated under the Companies Act, 2013. LLP incorporation is governed by separate rules under the Limited Liability Partnership Act, 2008.
Need guidance on company incorporation, conversion, or compliance under the Companies Act? The advisory team at A S Banka Advisors Private Limited helps startups, MSMEs, and established businesses navigate MCA filings, corporate restructuring, and regulatory compliance. Get expert guidance to stay ahead of these changes.
Disclaimer: This article is for informational purposes only and does not constitute legal or professional advice. The proposed rules discussed are in draft stage and subject to change based on stakeholder feedback. Please consult a qualified professional for advice specific to your situation. Information is current as of April 14, 2026.