India’s business environment is undergoing a remarkable transformation. Strategic policy shifts, regulatory simplification, and digital-first initiatives are transforming the way companies operate. Whether it’s global tech giants or homegrown exporters, these updates impact a broad spectrum of stakeholders. As 2025 unfolds, here’s a closer look at the reforms shaping a more agile and competitive India incorporation process.
Equalisation Levy on Online Ads to Be Abolished from April 2025
In a significant policy reversal, the Indian government has proposed scraping the 6% Equalisation Levy (EL) on online advertisements. The move is expected to benefit global digital companies and streamline tax compliance.
The Equalisation Levy, introduced in 2016, applied to non-resident advertising service providers without a physical presence in India. It was levied when payments to these providers exceeded ₹1,00,000 annually.
Proposed Change:
The levy will be abolished effective April 1, 2025. This will directly benefit companies like Google, Meta, and Amazon, which dominate the global digital advertising market.
Impact on Agencies:
Larger agencies serving global clients may benefit from reduced costs and increased efficiency. However, smaller, domestically focused firms may face tougher competition from international players.
Administrative Relief:
The change reduces quarterly compliance burdens and documentation. Industry players have welcomed it as a step toward simplified taxation.
This reform aligns with India’s broader strategy to promote cross-border trade and digital cooperation with key global partners, particularly the United States.
MCA V3 Portal: A Digital Leap in Corporate Filing
The Ministry of Corporate Affairs (MCA) will roll out the final batch of 38 forms on the MCA V3 portal by July 14, 2025. This upgrade will bring India closer to fully digitised, transparent corporate compliance.
The new portal reflects the government’s commitment to reducing friction in business processes and increasing efficiency in governance.
Web-Based Forms:
Manual uploads are being replaced with streamlined web forms, which reduce redundancy and standardise data capture.
Pre-Filled Fields:
Automatic field population improves consistency and reduces manual errors, speeding up the overall filing process.
File Handling & Linked Reports:
Larger uploads (up to 10 MB per form) are now accepted. Linked filings allow for seamless submission of related documents.
Other updates bring further enhancements to compliance and usability.
Expanded Attachments:
Shareholder files can now be uploaded up to 300 MB for MGT-7, accommodating more complex submissions.
Visual Documentation:
MGT filings will now require interior and exterior photos of office premises. This adds an extra layer of verification.
Complaint Integration:
The ICP and SCP complaint forms are merged into a single non-STP form, simplifying grievance reporting.
CSR Updates:
CSR-1 has been redesigned with enhanced local data fields. CSR-2 remains an online-only form.
AGM Defaults:
GNL-1 now includes fields for AGM-related defaults and compounding disclosures. This provides deeper regulatory visibility.
The V3 portal is a decisive step toward real-time compliance and paperless governance. Businesses can expect greater clarity, faster turnarounds, and fewer regulatory hurdles.
RoDTEP Benefits Reinstated for Exporters from June 2025
India has reinstated the RoDTEP scheme for exporters starting June 1, 2025. This move aims to improve India’s global trade competitiveness and ease the burden of unrecovered embedded taxes.
The policy brings relief to various exporting industries and supports long-term trade growth.
Wider Eligibility:
Exporters under Advance Authorisation, EOUs, and SEZs now qualify for RoDTEP. This expands the benefit base significantly.
Financial Commitment:
₹182.33 billion (US$2.13 billion) has been allocated for FY 2025–26, covering multiple product categories.
Sectoral Coverage:
Industries like textiles, chemicals, pharma, agriculture, and automobiles are eligible. Refunds are granted via transferable e-scrips.
Application Process:
Exporters must declare their RoDTEP claim while filing shipping bills. Credits are transferred post-export through the ICEGATE portal.
Industry stakeholders have welcomed this move, but caution that consistency in policy is critical. Frequent changes can dilute exporter confidence and affect long-term competitiveness.
The reintroduction of RoDTEP for SEZs and EOUs marks a strong shift toward making Indian exports more viable globally.
India May Open Government Procurement to Foreign Companies
The Indian government is considering opening its central procurement market to foreign firms. This proposal comes amid ongoing trade discussions with the United States.
The move could attract more investment and competition in public projects.
Expanded Access:
Foreign companies may bid for federal procurement contracts. However, state and local contracts will remain closed to overseas firms.
Trade Precedent:
A similar provision was introduced in India’s recent FTA with the UK. British firms gained limited access to central procurement.
MSME Safeguard:
Despite reduced barriers to entry, 25% of public procurement will still be reserved for small Indian enterprises. This protects domestic industry interests.
If implemented, this change could improve transparency and efficiency in public procurement. However, it also raises concerns among MSMEs about increased competition from global players.
India’s balancing act liberalising trade while protecting domestic capability- will determine the success of this bold step.
India Launches SPMEPCI Scheme to Boost EV Manufacturing
On June 2, 2025, India launched the SPMEPCI scheme to encourage domestic electric vehicle (EV) production. This move aims to reduce import dependence and position India as an EV manufacturing hub.
The initiative sets clear investment benchmarks and offers strong incentives.
Investment Mandate:
Approved firms must invest at least ₹41.5 billion (approx. US$485.9 million) within three years. Funds must go toward eligible EV manufacturing assets.
Import Duty Relief:
Companies can import up to 8,000 EVs annually at 15% customs duty. This is a sharp reduction from the existing 110%.
Domestic Value Addition (DVA) Targets:
Companies must achieve 25% DVA within three years. This must rise to 50% within five years of operations.
Spending Guidelines:
Only plant, machinery, R&D, and infrastructure expenses count. Land and most building costs are excluded or capped.
Bank Guarantee Clause:
A bank guarantee equal to the duty saved or ₹41.5 billion whichever is higher is mandatory. It must remain valid throughout the scheme period.
Several automakers, including Skoda-Volkswagen, Hyundai, Kia, and Mercedes-Benz, have shown interest. Tesla, however, has chosen to opt out of manufacturing under the scheme.
By setting clear investment targets and offering attractive incentives, SPMEPCI is designed to strengthen India’s EV ecosystem and attract global manufacturers.
Conclusion
The latest policy moves reaffirm India’s focus on building a business-friendly, globally competitive environment. From simplifying compliance to opening new trade opportunities, the reforms are strategically designed to balance ease of business with economic resilience.
Each change signals progress. They represent India’s shift toward more innovative governance, stronger trade ties, and sustainable industrial growth.
As the global economy evolves, India is not just adapting, it’s leading with intent. For businesses eyeing Asia, the message is clear India is open, agile, and ready for the future. Exploring India Company incorporation now can be a strategic entry point for those looking to establish a strong presence in this dynamic market.
