MCA Notifies Amended Form CRL-1 Under Companies (Restriction on Number of Layers) Amendment Rules

The Ministry of Corporate Affairs (MCA) has formally notified the Companies (Restriction on Number of Layers) Amendment Rules, 2025, including an amended Form CRL-1. These updated rules aim to further regulate corporate structures by possibly limiting the number of subsidiary layers a company can maintain. Form CRL-1 is specifically designed for reporting compliance with these layering restrictions. The objective behind such regulations is typically to enhance corporate transparency, mitigate risks associated with complex structures (like money laundering or tax evasion), and improve overall corporate accountability. Companies will need to carefully review these amendments to ensure their organizational structures align with the revised legal framework.