The Ministry of Corporate Affairs (MCA) issued notification G.S.R. 427(E) on June 27, 2025, introducing the Companies (Restriction on number of layers) Amendment Rules, 2025. These rules, which come into force on July 14, 2025, are enacted under the authority granted by Section 2, clause (87), and Section 469, sub-sections (1) and (2) of the Companies Act, 2013. The key change brought by this amendment is the substitution of Form CRL-1 in the Annexure of the Companies (Restriction on number of layers) Rules, 2017, with a new form. This update aims to modify the reporting requirements related to the number of layers of subsidiaries that companies can have, reflecting ongoing adjustments to corporate governance regulations.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 27th June, 2025
G.S.R. 427(E).— In exercise of the powers conferred by proviso to clause (87) of section 2 and subsections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules to amend Companies (Restriction on number of layers) Rules, 2017 namely:—
1. Short title and commencement. – (1) These rules may be called the Companies (Restriction on number of layers) Amendment Rules, 2025.
(2) They shall come into force on the 14th day of July, 2025.
2. In the Companies (Restriction on number of layers) Rules, 2017, in the Annexure, for Form CRL-1, the following form shall be substituted, namely: —
Form No. CRL-1
Return regarding number of layers
[Pursuant to proviso to section 2(87) of the Companies Act, 2013 and rule 2(4)(i) of the Companies (Restriction on number of layer) Rules, 2017]
[F. No. 01/13/2013-CL-V (Vol.V)]
BALAMURUGAN D, Jt. Secy.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide notification number G.S.R. 1176(E), dated the 20th September, 2017.
