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Content Overview [ Contact us ](#contact-us-sidebar) #### Content Overview #### Got questions about how the new incorporation rules affect your company? [Let's Talk](https://calendly.com/consulttreelife/20min?utm_source=blogbannertreelife) #### Get in touch with us Your information is confidential and secure Or [Book a CONSULTATION](https://calendly.com/consulttreelife) Δ Blog Content Overview - [1 What Is the MCA Proposing, and Why?](#What_Is_the_MCA_Proposing_and_Why) - [2 The 9-Into-2 Form Consolidation: E-CHNG and E-CON Explained](#The_9-Into-2_Form_Consolidation_E-CHNG_and_E-CON_Explained) - [3 What Changes to SPICe+, DIN, and Director Consent?](#What_Changes_to_SPICe_DIN_and_Director_Consent) - [4 How Does the Registered Office Rule Change Under Rule 25?](#How_Does_the_Registered_Office_Rule_Change_Under_Rule_25) - [5 What Happens to One Person Companies (OPCs)?](#What_Happens_to_One_Person_Companies_OPCs) - [6 What Is the New Rule 23B on Deceased Subscribers?](#What_Is_the_New_Rule_23B_on_Deceased_Subscribers) - [7 Is AGILE-PRO-S Registration Now Optional?](#Is_AGILE-PRO-S_Registration_Now_Optional) - [8 The Section 8 Company Unlock: What Most Summaries Miss](#The_Section_8_Company_Unlock_What_Most_Summaries_Miss) - [9 Digital Communication Replaces Registered Post](#Digital_Communication_Replaces_Registered_Post) - [10 Comparison Table: Key Changes at a Glance](#Comparison_Table_Key_Changes_at_a_Glance) - [11 What Are the Key Dates?](#What_Are_the_Key_Dates) - [12 What Should Founders, CS Professionals, and Practitioners Do Now?](#What_Should_Founders_CS_Professionals_and_Practitioners_Do_Now) - - [12.0.1 Filing a registered office change or OPC conversion before the rules shift? Let’s Talk](#Filing_a_registered_office_change_or_OPC_conversion_before_the_rules_shift_Let8217s_Talk) - [13 Treelife’s View: A Practitioner’s Perspective](#Treelife8217s_View_A_Practitioner8217s_Perspective) **Key Takeaways** - The Ministry of Corporate Affairs (MCA) has released draft Companies (Incorporation) Amendment Rules, 2026 on 08 April 2026, proposing the largest single reduction in incorporation-related paperwork since the Companies Act, 2013 came into force. - Nine existing e-forms are proposed to be merged into two consolidated forms – E-CHNG and E-CON – eliminating duplication across registered office changes, name changes, conversions, and approvals. - The DIN (Director Identification Number) cap at incorporation rises from 3 to 5, Form DIR-12 is being omitted, and MoA subscribers will be granted deemed consent as directors, streamlining the SPICe+ process. - Registered office verification shifts from mandatory physical inspection to a risk-based discretionary model under an amended Rule 25, with co-working spaces explicitly recognised alongside owned and leased premises. - The AGILE-PRO-S registrations (EPFO, ESIC, bank account) become optional at incorporation – a meaningful relief for early-stage companies that do not immediately need these registrations. - These are proposed changes and are not yet gazetted; stakeholders have until **9 May 2026** to submit comments via the MCA e-Consultation Module at [mca.gov.in](https://mca.gov.in). > ## **What Is the MCA Proposing, and Why?** The Ministry of Corporate Affairs (MCA) – India’s central regulator for company law under the Companies Act, 2013 – issued a public notice on 08 April 2026 (Reference: CL-V Section, Policy-01/2/2025-CL-V-MCA-Part(2)) proposing comprehensive amendments to the Companies (Incorporation) Rules, 2014. The draft notification, formally titled the Companies (Incorporation) Amendment Rules, 2026, is open for stakeholder comment until **9 May 2026** through the MCA’s e-Consultation Module at mca.gov.in. This is not a routine tweak. Taken together, the proposals represent the most substantive overhaul of the incorporation mechanics since SPICe+ was introduced. The changes affect every Indian company – from a two-founder private limited company filing its first registered office document to a professional CS managing a portfolio of OPC conversions. The proposals are part of a broader MCA push toward a fully digital, paperless corporate ecosystem, running parallel to the Corporate Laws (Amendment) Bill, 2026 introduced in Lok Sabha in March 2026 and the Company Fresh Start Scheme 2026 (CFSS 2026) running from 1 April to 30 September 2026. **Important caveat:** The draft amendments are not yet gazetted and are subject to change based on stakeholder feedback. Nothing in this article should be acted upon as currently effective law. Readers should verify the final rules once notified. ## **The 9-Into-2 Form Consolidation: E-CHNG and E-CON Explained** The single most impactful proposal in the draft is the consolidation of nine existing MCA e-forms into two simplified forms. Currently, companies filing routine changes – a registered office shift, a name change, a conversion – must navigate a fragmented set of forms, each with its own attachment checklist and repetitive disclosure requirements. The draft eliminates that fragmentation. **Form E-CHNG** will consolidate four forms that relate to changes in registered office and company name: - INC-4 (intimation of change of situation of registered office) - INC-22 (verification of registered office) - INC-23 (application to Regional Director for change of registered office) - INC-24 (application for change of name) **Form E-CON** will consolidate seven forms covering conversions, approvals, and regulatory orders: - INC-6 (OPC conversion) - INC-12 (application for licence under Section 8) - INC-18 (application to Regional Director for conversion of Section 8 company) - INC-20 (intimation to Registrar for revocation of licence under Section 8) - INC-27 (conversion of public company to private company or private company to public company) - INC-28 (notice of order of court or tribunal) - RD-1 (application to Regional Director for various approvals) **Why this matters in practice:** A company changing its registered office from one state to another currently files INC-23 with the Regional Director and separately verifies the new office via INC-22, often with overlapping documents. Under the proposed framework, both steps fold into a single E-CHNG filing. The reduction in repetitive disclosures is not cosmetic – it materially shortens the compliance chain for routine corporate actions. ## **What Changes to SPICe+, DIN, and Director Consent?** The SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) framework – which currently combines name reservation, DIN allotment, PAN, TAN, GSTIN, EPFO, ESIC, and bank account opening in a single integrated filing – is being further streamlined under the draft. Three specific changes are proposed: 1. **DIN cap raised from 3 to 5.** Currently, a maximum of 3 new Director Identification Numbers (DINs) can be allotted at the time of incorporation through SPICe+. The draft raises this cap to 5, allowing companies with larger founding teams to complete DIN allotment for all proposed directors in a single filing. 2. **Deemed consent for MoA subscribers.** Under the current rules, subscribers to the Memorandum of Association (MoA) who are also proposed directors must separately file director consent (Form DIR-2). The draft introduces a “deemed consent” mechanism: signing the MoA as a subscriber will itself constitute consent to act as a director, removing the need for a standalone consent filing. 3. **Form DIR-12 (Rule 17) omitted.** Form DIR-12 was previously required to intimate the Registrar of Companies (ROC) about the appointment of first directors. Since SPICe+ already captures this information, the draft proposes to omit Rule 17 and Form DIR-12 entirely, eliminating a step that practitioners have long flagged as duplicative. ## **How Does the Registered Office Rule Change Under Rule 25?** Under the proposed amendment, Rule 25 of the Companies (Incorporation) Rules, 2014 is being updated to explicitly recognise three categories of registered office premises: owned, leased, and co-working spaces. This codification matters because the current rules are ambiguous on co-working arrangements, leading to inconsistent ROC treatment across different jurisdictions. The acceptable documents for registered office proof are also being broadened to include municipal khata extracts and utility bills, alongside the existing list of documents (lease deed, NOC, etc.). More significantly, the physical verification of registered office by the Registrar of Companies is shifting from a mandatory step to a **risk-based, discretionary model**. Under the proposed Rule 25B, the Registrar will conduct physical verification only where the circumstances warrant it, involving police or local witnesses only as necessary – rather than as a routine requirement. **Practical implication for co-working users:** Thousands of early-stage companies in India use co-working spaces as their registered office. The explicit recognition of co-working spaces in Rule 25, combined with discretionary rather than mandatory verification, removes a significant point of ambiguity and practical friction that has historically caused delays at incorporation and during registered office change filings. ## **What Happens to One Person Companies (OPCs)?** The draft proposes two significant changes for One Person Companies (OPCs) registered under Section 2(62) of the Companies Act, 2013: **Removal of affidavit requirement for conversion.** Currently, when an OPC converts to a private limited company (or vice versa), the director must file an affidavit as part of the conversion documentation. The draft proposes to remove this requirement, simplifying the conversion process. **Omission of criminal liability under Rule 7A.** Rule 7A currently prescribes criminal penalties for an OPC that fails to convert to a private limited company once it crosses the prescribed thresholds (paid-up capital exceeding ₹50 lakh or average annual turnover exceeding ₹2 crore for three consecutive financial years). The draft proposes to omit Rule 7A entirely, replacing the threat of criminal prosecution with civil penalties for procedural defaults. This shift from criminal to civil liability is consistent with the broader decriminalisation thrust of the Corporate Laws (Amendment) Bill, 2026, which proposes to omit or convert over 20 criminal provisions in the Companies Act, 2013. ## **What Is the New Rule 23B on Deceased Subscribers?** New Rule 23B proposed in the draft addresses a gap that practitioners and courts have long grappled with: what happens when a subscriber to the Memorandum of Association passes away before paying for their subscribed shares? Under the current framework, there is no explicit provision governing this scenario. The draft resolves the ambiguity by providing that the legal representative of the deceased subscriber steps into their position and is required to fulfil the subscription obligation – i.e., pay for the shares subscribed in the MoA. This is a narrow but important clarification. Without it, companies faced uncertainty about whether the subscription remained valid, whether a fresh MoA was required, and what the ROC’s position on the company’s incorporation would be. Rule 23B eliminates that uncertainty with a clear succession mechanism. ## **Is AGILE-PRO-S Registration Now Optional?** Yes, under the proposed amendment. The AGILE-PRO-S (Application for Goods and Services Tax Identification Number, ESIC Registration, EPFO Registration, Profession Tax Registration, and Opening of Bank Account) form currently enables companies to obtain EPFO registration, ESIC registration, and a bank account at the time of incorporation through SPICe+. The draft proposes to make these registrations **optional** at the incorporation stage. Companies that do not require EPFO or ESIC registration at the time of incorporation – which is the case for most early-stage companies that have not yet hired employees – can defer these registrations to a later stage when they actually become relevant. **What this means for founders:** The current mandatory AGILE-PRO-S filing occasionally creates complications for founding teams that are not ready to open a corporate bank account or register for EPFO at the time of incorporation. Making it optional removes a source of friction and allows founders to sequence these registrations based on operational readiness rather than regulatory compulsion. ## **The Section 8 Company Unlock: What Most Summaries Miss** One change in the draft that has received relatively little attention is the proposed amendment relating to Section 8 companies (not-for-profit companies licensed under Section 8 of the Companies Act, 2013). The draft proposes two changes for Section 8 companies: 1. **Streamlined licence documentation.** The requirement to attach the memorandum and articles of association, as well as estimates of future income and expenditure, to the licence application under INC-12 is proposed to be removed. 2. **Conversion from guarantee basis to share basis.** Currently, a Section 8 company limited by guarantee cannot convert itself into a Section 8 company limited by shares. The draft proposes to expressly permit this conversion, which has historically required either a circuitous restructuring or an MCA-level policy exception. This second change is material for NGOs, foundations, and impact organisations that started life as guarantee companies but now want the flexibility of a share-based structure – for instance, to issue ESOPs to key employees or to bring in investors with a quasi-equity stake. ## **Digital Communication Replaces Registered Post** The draft also proposes replacing the requirement to serve notices by “Registered Post” with Speed Post and Email. This is a practical alignment with the way companies and professionals actually communicate, and it eliminates delays caused by physical mail delivery requirements for statutory notices. ## **Comparison Table: Key Changes at a Glance** **Table: Summary of Key Proposed Changes – Companies (Incorporation) Amendment Rules, 2026** AreaCurrent PositionProposed ChangeImpact LevelE-forms9 separate forms (INC-4, INC-6, INC-12, INC-18, INC-20, INC-22, INC-23, INC-24, RD-1)Merged into 2 forms: E-CHNG and E-CONHighDIN cap at incorporation3 DINs per SPICe+ applicationRaised to 5 DINs per SPICe+ applicationMediumDirector consentSeparate DIR-2 consent filing requiredDeemed consent via MoA subscriptionMediumForm DIR-12 (Rule 17)Required for first director intimationOmitted (duplicative of SPICe+)MediumRegistered office verificationMandatory physical verificationRisk-based, discretionary modelHighCo-working spacesAmbiguous recognitionExplicitly recognised in Rule 25MediumOPC conversionDirector’s affidavit requiredAffidavit requirement removedLow-MediumOPC non-conversion liabilityCriminal liability under Rule 7ARule 7A omitted; civil penalties onlyMediumDeceased subscriberNo explicit ruleNew Rule 23B: legal rep steps inLow-MediumAGILE-PRO-S (EPFO/ESIC)Mandatory at incorporationOptional at incorporationMediumSection 8 conversionGuarantee-to-share conversion not permittedExplicitly permittedMediumNotice serviceRegistered Post requiredSpeed Post and Email permittedLow## **What Are the Key Dates?** - **08 April 2026:** MCA issues draft Companies (Incorporation) Amendment Rules, 2026 via public notice. - **09 May 2026:** Last date for stakeholder comments on the draft via MCA e-Consultation Module at mca.gov.in. - **15 May 2026:** Last date for comments on the IICA filing framework rationalisation consultation (iica.nic.in/mcaeodbform) – a parallel consultation covering entry, operations, and exit under the Companies Act, 2013. ## **What Should Founders, CS Professionals, and Practitioners Do Now?** The draft is open for comment, and the breadth of the proposals means that practical implementation questions will shape how useful these changes are in practice. Here are three areas where stakeholder comment is likely to be most valuable: 1. **E-form transition timelines.** The proposed E-CHNG and E-CON forms do not yet appear on the MCA V3 portal. The gap between gazettal and portal availability has historically caused compliance delays. Comments requesting a clear transition timeline and parallel-running period for old and new forms are directly relevant. 2. **Co-working space documentation standards.** While the draft explicitly recognises co-working spaces, it does not specify a standardised document format (e.g., a Letter of Authorisation from the co-working operator). Without standardisation, ROCs may apply inconsistent requirements. This is a gap worth raising. 3. **Risk-based verification criteria.** The shift to discretionary physical verification of registered offices is welcome, but the draft does not define the criteria that trigger a verification. Greater specificity here would reduce arbitrary ROC discretion. #### Filing a registered office change or OPC conversion before the rules shift? [Let’s Talk](javascript:void(0)) [ ](https://treelife.in/services/secretarial-compliance/) ## **Treelife’s View: A Practitioner’s Perspective** In the incorporation and corporate change engagements we handle at Treelife, the friction is rarely conceptual – it is almost always procedural. A registered office change that should take two weeks stretches to six because INC-22 and INC-23 are filed separately, one attachment overlaps, and the ROC sends a notice asking for the same document in a different format. A conversion OPC trips on the affidavit requirement that serves no real verification purpose. The scale of the form consolidation proposed here – nine into two – is genuinely significant. It is not a cosmetic rebranding of forms; it is a structural reduction in the number of touch-points between a company and the ROC for the most common corporate events. If implemented cleanly on the MCA V3 portal with clear attachment checklists, this will reduce turnaround times on registered office changes and company name changes materially. The registered office change is where we see the most client pain on the ground. The explicit recognition of co-working spaces in Rule 25, combined with risk-based rather than mandatory physical verification under the proposed Rule 25B, directly addresses the situation of hundreds of startups we work with that operate from co-working addresses like WeWork, Awfis, and IndiQube. The current framework forces these companies into a verification process that treats a legitimate co-working arrangement with the same scrutiny as a potential shell company address – which makes no operational sense. The one change I would flag as needing close monitoring post-gazettal is the OPC non-conversion position. Removing Rule 7A criminal liability is the right call – criminal penalties for what is essentially a procedural default were disproportionate. But civil penalties need to be specified clearly, and companies that are already in breach of conversion timelines need clarity on whether a regularisation pathway exists alongside the CFSS 2026 amnesty that is currently running. Practitioners and founders should submit comments before 9 May 2026 – particularly on transition timelines and the registered office documentation standards – to help shape the final rules in a way that translates good intent into clean implementation. [ Read as Markdown](https://treelife.in/legal/mca-draft-incorporation-amendment-rules-2026/?format=markdown) ### Related posts: 1. [Angel Tax Exemption – Eligibility, Declaration, How to Apply](https://treelife.in/legal/angel-tax-exemption/ "Angel Tax Exemption – Eligibility, Declaration, How to Apply") 2. [All About Advisor Equity – Types, Granting Process, Benefits](https://treelife.in/legal/all-about-advisor-equity/ "All About Advisor Equity – Types, Granting Process, Benefits") 3. [Importance & Applicability Of Labour Laws for Startups](https://treelife.in/legal/importance-applicability-of-labour-laws-for-startups/ "Importance & Applicability Of Labour Laws for Startups") 4. [De-Coding the Co-Founders Agreement](https://treelife.in/legal/de-coding-the-co-founders-agreement/ "De-Coding the Co-Founders Agreement") ## FAQs on MCA Draft Incorporation Rules 2026 1. #### What are the new forms E-CHNG and E-CON, and when will they be available? E-CHNG is the proposed consolidated form for registered office and company name changes, merging INC-4, INC-22, INC-23, and INC-24. E-CON is the proposed consolidated form for conversions and approvals, merging INC-6, INC-12, INC-18, INC-20, INC-27, INC-28, and RD-1. Neither form is yet available on the MCA V3 portal. Form availability will depend on the gazettal date and MCA portal deployment timelines, which will need to be monitored separately. 2. #### Does the DIN cap change affect existing directors? No. The change raises the cap for new DIN allotments at the time of incorporation from 3 to 5. It does not affect DINs already allotted to existing directors, and the DIR-3 KYC annual filing obligation for existing DIN holders remains unchanged. 3. #### Can an OPC now avoid converting to a private limited company without consequences? The draft proposes to remove criminal liability for failure to convert under Rule 7A. However, the conversion obligation under the Companies Act, 2013 itself (Section 18 read with Section 2(62)) is not being removed – only the criminal penalty mechanism is being replaced with civil penalties. Companies that have crossed the conversion thresholds (paid-up capital over ₹50 lakh or annual turnover over ₹2 crore for three consecutive FYs) should still comply with the conversion obligation and seek professional advice on regularisation if they are in default. 4. #### If a co-working space address is used as the registered office, what documents will be required? Under the proposed amendment, Rule 25 will explicitly recognise co-working spaces, and acceptable documents include the co-working agreement or Letter of Authorisation from the space operator, municipal khata, and utility bills. However, the final standardised document list will depend on the gazetted rules. Treelife recommends maintaining a complete documentation package (co-working agreement, operator NOC, latest utility bill) in any event, as ROC practice may vary. 5. #### What is the Section 8 guarantee-to-share conversion, and who does it affect? Section 8 companies licensed under Section 8 of the Companies Act, 2013 can be structured either as companies limited by shares or companies limited by guarantee. The draft proposes to permit conversion from a guarantee-basis Section 8 to a share-basis Section 8 – a route that was previously unavailable. This is relevant for NGOs, foundations, and impact organisations that wish to move to a share-based structure for governance, equity compensation, or quasi-investment purposes. 6. #### Should I submit a comment to MCA before 9 May 2026? If you are a company secretary, startup founder, or legal or compliance professional who regularly handles incorporation-related filings, submitting comments is worthwhile – particularly on transition timelines, co-working documentation standards, and the criteria for risk-based registered office verification. Comments can be submitted via the e-Consultation Module at mca.gov.in. 7. #### Is the parallel IICA consultation related to these amendments? The IICA consultation (deadline 15 May 2026 at iica.nic.in/mcaeodbform) is a broader exercise covering the rationalisation of the overall filing and compliance framework under the Companies Act, 2013 – covering entry, operations, and exit. It runs parallel to but is separate from the specific incorporation rules consultation. ###### About the Author ###### Share - Link copied to clipboard! https://treelife.in/legal/mca-draft-incorporation-amendment-rules-2026/ [ ![share-icon](https://treelife.in/wp-content/themes/treelife/assets/images/vector-black.svg) ](javascript:void(0)) - [ ![mdi_linkedin](https://treelife.in/wp-content/themes/treelife/assets/images/linkedin-black.svg) ](https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Ftreelife.in%2Flegal%2Fmca-draft-incorporation-amendment-rules-2026%2F&title=MCA+Draft+Incorporation+Amendment+Rules+2026%3A+Guide+for+Founders+and+CS "Share on LinkedIn") - [ ![whatsap-share](https://treelife.in/wp-content/themes/treelife/assets/images/whatsap-black.svg) ](https://api.whatsapp.com/send?text=MCA+Draft+Incorporation+Amendment+Rules+2026%3A+Guide+for+Founders+and+CS+https%3A%2F%2Ftreelife.in%2Flegal%2Fmca-draft-incorporation-amendment-rules-2026%2F) - [ ![twitter-share](https://treelife.in/wp-content/themes/treelife/assets/images/twitter-black.svg) ](https://twitter.com/intent/tweet?url=https%3A%2F%2Ftreelife.in%2Flegal%2Fmca-draft-incorporation-amendment-rules-2026%2F&text=MCA+Draft+Incorporation+Amendment+Rules+2026%3A+Guide+for+Founders+and+CS) - [ ![facebook-share](https://treelife.in/wp-content/themes/treelife/assets/images/facebook-black.svg) ](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Ftreelife.in%2Flegal%2Fmca-draft-incorporation-amendment-rules-2026%2F) ![Treelife](https://cdn.treelife.in/2024/09/treelife-icon.jpg) ##### Treelife [ ![social-linkedin](https://treelife.in/wp-content/themes/treelife/assets/images/linkedin.svg) ](https://in.linkedin.com/company/treelife-consulting) ###### Treelife Team | support@treelife.in We are a legal and finance firm with a deep focus on the startup ecosystem. We offer a wide range of services, including **Virtual CFO, Legal Support, Tax & Regulatory, and Global Expansion assistance**. Our goal at Treelife is to provide you with peace of mind and ease in business. ###### Reviewed By ![Garima Mitra](https://cdn.treelife.in/2024/09/Garima-Mitra.webp) ##### Garima Mitra [ ![linkedin](https://treelife.in/wp-content/themes/treelife/assets/images/linkedin.svg) ](https://in.linkedin.com/in/garimamitra) ###### Co-founder Spearheads Transactions, Contracts, and Compliance verticals at Treelife, combining expertise in business law with a focus on startup legal and governance. ![Pooja Savla](https://cdn.treelife.in/2024/11/Pooja-Savla.webp) ##### Pooja Savla [ ![linkedin](https://treelife.in/wp-content/themes/treelife/assets/images/linkedin.svg) ](https://www.linkedin.com/in/pooja-savla-60142b7b/) ###### Principal Associate | Transactions Specialises in transaction advisory, mergers and acquisitions, investment structuring, and corporate legal matters for startups and growth-stage companies. ## We Are Problem Solvers. And Take Accountability. 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[Learn More![Learn More](https://treelife.in/wp-content/themes/treelife/assets/images/learn-more-up-arrow.svg)](https://treelife.in/compliance/lei-registration-in-india/) ![Increase Authorised Share Capital: Process, Form SH-7 & Stamp duty](https://cdn.treelife.in/2026/09/Increase-Authorised-Share-Capital-Process-Form-SH-7-Stamp-duty.jpg) ##### [Increase Authorised Share Capital: Process, Form SH-7 & Stamp duty](https://treelife.in/legal/increase-authorised-share-capital/) Authorised share capital is the ceiling on how many shares a company is legally permitted to issue, and it is... 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