Government Introduces Vishwas Bill 2.0 To Decriminalise Over 100 Provisions, Simplify Business Processes

Komal Bajpai

Author

Updated: 16-04-2025 at 12:51 PM

The central government plans to introduce the second version of the Vishwas Bill before Parliament to remove criminal penalties from over 100 provisions within various business laws. The proposed bill aims to eliminate regulatory restrictions, which will create a favourable business climate to encourage economic development. The government continues its measures to improve business conditions while seeking investments from domestic and international entities.

Key Objectives Of Vishwas Bill 2.0

The main purpose of this bill is to simplify legal procedures and diminish business penalties by transforming severe punishment provisions into monetary fines instead of jail sentences. Some key objectives include:

The new law should remove imprisonment penalties for dealing with procedural violations and small offences.
Businesses would transition from imprisonment sentences to face payment of financial fines instead.
The bill works to decrease business and entrepreneurial demands for compliance.
The regulatory framework in India seeks to increase investor trust in its regulatory structure.

Also Read: What Is The Jan Vishwas Bill 2.0 In Union Budget 2025?

Scope Of The Vishwas Bill 2.0

Multiple laws that affect business operations receive coverage in the bill through provisions that pertain to corporate governance as well as taxation and financial regulations plus labour laws. The government plans to modify several crucial laws among them including:

Companies Act, 2013 – Reducing criminal liabilities for procedural defaults.
Income Tax Act – Simplifying tax compliance for businesses.
GST Act – Relaxing penalties for minor compliance lapses.
Factories Act & Labour Laws – Easing legal provisions for business owners.

Impact On The Ease of Doing Business

India aims to enhance its position on the Ease of Doing Business Index through the pending Vishwas Bill 2.0. The bill will lead to two main benefits simplified compliance procedures and diminished legal complexity.

MSMEs and startups will start operating without anxiety about legal sanctions.
Foreign direct investment (FDI) attraction will increase through the establishment of a certain regulatory system.
This piece of legislation enhances Indian global business capabilities while reducing expenses for enterprising business owners.

Government’s Previous Reform Efforts

The government continues its regulatory reform initiatives alongside this particular measure.

Indian taxpayers can use the Vivaad Se Vishwas Scheme (2020) to settle disagreements with tax authorities efficiently.
The Labour Codes Reform (2020-21) functions to combine and streamline existing labour legislation.
Decriminalisation of LLP Act (2021) – Removing harsh penalties for compliance-related defaults.

Also Read: Understanding The New Income Tax Bill 2025

Reactions From Industry Experts And Business Community

The business community approves of Vishwas Bill 2.0 because several industry experts recognise its favourable impact on operations. Industry leaders have stated:

The legislation will strengthen entrepreneur confidence and develop policies that favour business operations.
Businesses will dedicate their efforts to growth initiatives after legal procedural penalties become decriminalised.
Companies would perceive India as more suitable for global investments when the risks associated with legal disputes decrease.

Conclusion

The Vishwas Bill 2.0 stands as a historical economic policy reform which reduces business legal challenges while protecting regulatory adherence. The government has introduced decriminalisation measures for over 100 provisions to develop an investor-friendly business environment. The expected outcome of this latest move is to advance economic growth and innovation together with fresh investment leading India toward becoming a stronger global financial leader.

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