In a significant move, Parliament passed the new Companies Bill on 5th December 2023, ushering in a new era for business regulations. The updated legislation focuses on streamlining the formation, registration, and dissolution processes of companies, with the primary objective of removing barriers to economic growth. This forward-looking bill aligns with best practices observed in major economies, reflecting a comprehensive overhaul of our existing Companies Act, which has been in force since 1996.
Here are some key amendments that come with this transformative change:
This new legislation aims to create a favorable environment for businesses, encouraging investment for economic productivity, managing risks, and delivering economic and social benefits. By modernizing legal concepts and principles, this Companies Bill propels our legal system into the future, aligning with contemporary needs and aspirations. Upon the President's ratification, the Companies Bill is set to take effect on January 1, 2024.