The Ministry of Corporate Affairs (“MCA”) has notified the Companies (Restriction on Number of Layers) Amendment Rules, 2025 (“Amendment Rules”). Effective from 14th July, 2025, the amendment rules replace the existing Form CRL-1 under the Companies (Restriction on Number of Layers) Rules, 2017 (“Principal Rules”). Companies having more than two layers of subsidiaries, as restricted under the Rules, must file the revised Form CRL-1 disclosing the number of subsidiary layers from 14th July, 2025.
The restriction on number of layers and the filing requirement do not apply to banking companies, NBFCs registered with RBI and deemed systemically important, insurance companies under the Insurance Act, 1938, and Government companies under the Companies Act, 2013.
Key Highlights:
- The new format replaces the earlier Form CRL-1, expanding required disclosures to include CIN, registered office, email ID, total layers, and detailed layer-wise particulars of all subsidiaries and holding companies.
- The return must be digitally signed by an authorised signatory (director, manager, CEO, CFO, or company secretary) supported by a Board resolution.
Source: Ministry of Corporate Affairs
