New Delhi : Ministry of Corporate Affairs has simplified the process for corporate reporting, doing away with the requirement of approval by the Registrar of Companies (ROC) in most cases and allowing companies to meet their reporting obligations with online acknowledgment Granted, two people informed of the development said.
The new system, dubbed “file and forget” by policymakers, is part of the government’s ongoing reform of the statutory filing website, MCA21, said one of the two people cited above, requesting anonymity. Companies can now complete most of their statutory filings. Obligation with an online acknowledgement, equivalent to approval by RoCs.
Of the nearly 100 forms that companies are required to file as part of compliance requirements under the Companies Act on filing obligations linked to various transactions and statutory requirements, 56 were shifted to a new web-based version in January. has been given, and an additional 30 web-based forms will be launched soon.
“Most of these important ones, such as allotment of securities or shares, are now out of RoC approval requirement. Online acknowledgment is sufficient, and they are taken on record under the auto-approval process. Earlier, barring a few, most forms filed by companies used to go to the RoC for their approval,” said the first person.
The ministry is also setting up a Centralized Processing Center for corporate filings under the Companies Act, similar to the Centralized Processing Center in Bengaluru of the Income Tax Department.
“With the scaled-up use of Straight Through Processing, there will be reduction in interference of officers on corporate filings. Naturally, this will provide convenience to the stakeholders and improve the ease of doing business,” said Noorul Hasan, a partner at Lakshmikumaran & Sreedharan Attorneys.
An email sent to the Ministry of Corporate Affairs on Friday seeking comment for the story remained unanswered at the time of publication.
The move to remove a layer of regulatory control is part of the government’s idea of ”minimum government and maximum governance”. A key factor helping this is the use of know-your-customer (KYC) requirements under the new filing system. , which identifies a login credential in the ministry’s portal with an individual’s email address and identity provided by Permanent Account Number (PAN) issued by the Income Tax Department, Director Identification Number issued by the ministry or professional identity issued by professional institutions .
The new system, with improved security features and two-factor authentication for incorporation of companies and other filings, does not allow multiple login credentials to be maintained by an individual. This has inconvenienced some professionals and prompted Finance and Corporate Affairs Minister Nirmala Sitharaman last week to set up a special team to address grievances and monitor daily issues.
The second person cited above, who has been informed of the website’s functioning, said filings have now stabilized, and the number of filings this fiscal year is at or better than last year’s level. In some filings, such as reservation of names of companies, the FY23 figures are better than the previous year’s figures despite the transition.
The change in the certification process to make statutory filings would help check attempts to create shell companies with fake directors, said the second person. “The web forms ensure real-time validation of data by matching it with the MCA database. If something is wrong, you can’t move forward,” the person said.
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