MCA amends Form CRL-1 for Companies Restriction on number of layers Rules

The latest amendment by MCA replaces Form CRL-1 under the Companies Act, 2013, easing company-to-LLP conversions and revising the layer restrictions.

MCA Notifies New Rules for Company-to-LLP Conversion and Layer Restrictions

Saloni Kumari | Jul 2, 2025 |

MCA amends Form CRL-1 for Companies Restriction on number of layers Rules

MCA amends Form CRL-1 for Companies Restriction on number of layers Rules

The Ministry of Corporate Affairs (MCA) has recently issued an official notification dated June 27, 2025, informing that the Central Government of India has introduced amendments into certain rules of the Companies (Restriction on Number of Layers) Rules, 2017, in exercise of its powers granted under proviso to clause (87) of section 2 and subsections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013). The amendments are as follows:

  • These new revised rules will be officially called the Companies (Restriction on Number of Layers) Amendment Rules, 2025.
  • The amended rules will come into effect on July 14, 2025.

The main amendment introduced in the existing Form CRL-1 is now being replaced with a new and updated version. Form CRL-1 is a legal document used under Section 230(1) of the Companies Act, 2013, in India, when a company wants to convert itself into a Limited Liability Partnership (LLP). Basically, the form is used when a company wants to shift its structure from a regular company to an LLP (which offers more flexibility and less compliance); the company is required to take approval from the central government. To inform the government, companies file Form CRL-1 with the Registrar of Companies (RoC). This form is ultimately a formal request made to the government asking for permission to convert the company into an LLP.

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 September 20, 2017.

Refer to the official notification to know the detailed amendments introduced in Form CRL-1.

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