🏢 Company Law Update: Amendment to Rules on Number of Layers of Companies | Effective from July 14, 2025
The Central Government has notified the Companies (Restriction on Number of Layers) Amendment Rules, 2025, in exercise of its powers under Section 2(87) (Proviso) and Section 469(1) & (2) of the Companies Act, 2013.
🚨 Key Highlights:
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🆕 Form CRL-1 has been revised. The updated version substitutes the existing format in the Annexure of the 2017 Rules.
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📅 The amendment shall come into effect from 14th July 2025.
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This change is expected to enhance transparency and improve the regulatory reporting framework regarding the structure of corporate layers.
🔗 Purpose: The amendment aims to streamline disclosures relating to the number of layers of subsidiaries that a company can have and ensure compliance with the prescribed limits.
