According to two people who were informed of the development, the ministry of corporate affairs has streamlined the procedure for corporate reporting by removing the need for Registrars of Companies (RoCs) approval in the majority of cases and allowing companies to fulfil their reporting obligations with an online acknowledgement.
One of the two individuals described above who asked to remain anonymous stated the new approach, called “file and forget” by policymakers, is a part of the government’s continuing reform of the statutory filing website, MCA21. The majority of a company’s statutory filings can now be finished. An obligation that requires an online acknowledgement and is equivalent to a RoCs approval.
Out of the almost 100 forms that businesses must submit in order to comply with the Companies Act’s filing requirements related to various transactions and regulatory requirements, In January, 56 were switched to a new web-based version. has been given, and 30 more web-based forms will soon be up.
The majority of these significant transactions, like the allocation of equities or shares, are no longer subject to RoC clearance. These can be acknowledged online and are recorded as part of the auto-approval process. Prior to a few, the majority of forms submitted by corporations went to the RoC for their approval,” stated the first individual.
Similar to the Income Tax Department’s Centralized Processing Center in Bengaluru, the ministry is likewise establishing a Centralized Processing Center for business filings under the Companies Act.
“Officer interference with company business will decrease with the expanded usage of Straight Through Processing.” filings. Understandably, this will make things easier for everyone involved and make doing business easier, according to Noorul Hasan, a partner at Lakshmikumaran & Sreedharan Lawyers.
At the time of publication, the Ministry of Corporate Affairs had not responded to an email requesting comment on the report that was received on Friday.
The administration’s policy of “minimal government and maximum governance” is reflected in the decision to eliminate a layer of regulatory oversight. Know-your-customer (KYC) requirements, which link a login credential in the ministry’s portal with a person’s email address and identity provided by a Permanent Account Number (PAN) issued by the Income Tax Department, Director Identification Number issued by the ministry, or professional identity, are a key factor in assisting with this. issued by reputable organisations. The updated system does not let an individual to maintain numerous login credentials due to better security measures and two-factor authentication for company incorporation and other filings. Because of the inconvenience this has caused some professionals, Nirmala Sitharaman, the minister of finance and corporate affairs, established a special team last week to handle complaints and keep an eye on ongoing problems.
The second source mentioned above, who is aware with how the website works, claimed that filings have steadied and that current fiscal year’s total is on par with or higher than last year’s level. The FY23 results are stronger than the FY22 figures in several filings, such as company name reservations, notwithstanding the shift.The modification to the certification procedure The second person said that making statutory filings would aid in thwarting attempts to form shell corporations with false directors. The online forms validate input in real-time by comparing it to the MCA database. You can’t move forward if something is incorrect, the guy said.
