MCA eyes revamp of compliance regime – The Economic Times

Clipped from: https://economictimes.indiatimes.com/news/economy/policy/mca-eyes-revamp-of-compliance-regime/articleshow/82037786.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23Synopsis

A senior government official told ET that the new system with these features would be rolled out from October. It will significantly bring down compliance requirements for companies and will be a “more trust-based system”, the official added.

mobile app for corporate filings, pre-filled forms and fewer compliances — after an exercise to cut down on the number of criminal offences under company laws, the Ministry of Corporate Affairs is proposing a complete revamp of the compliance system for corporates to ease doing business for them.

A senior government official told ET that the new system with these features would be rolled out from October. It will significantly bring down compliance requirements for companies and will be a “more trust-based system”, the official added.

The proposed system would be able to alert companies of any errors in filings and also be able to profile a company and assess its risk of defaulting. The ministry has been conducting a study to explore ways to rationalise the number of compliance forms. Based on its findings, changes would be incorporated in the October rollout.

The new MCA21 V3 platform that replaces MCA21 V2 will be deployed in two phases. A revamped website with features including e-consultation and e-books will be launched during April-May, while more comprehensive features like pre-filled web-based forms and the mobile app will be rolled out by October, the official said.

“Major things like the company module, LLP (limited liability partnership) module, enforcement module, compliance management system, everything will come online in October,” another official said.

While certain fields such as the balance sheet and profit and loss account figures will have to be manually filled in, most forms on the portal will be converted into pre-filled web forms from the current PDF versions, which is expected to bring down the time and resources spent on compliance.

The update will signal a shift to a more trust-based regime by doing away with attachments of various reports for verification, albeit with adequate checks.

The mobile app would come with features like e-consultation allowing users to provide feedback on draft bills directly online, an e-book for instant reference and sharing of all Acts and rules relating to company affairs and access to the registry of master data, the officials said.

MCA Eyes Revamp of Compliance Regime

Most of the front-facing features of the website would be incorporated in the app, but these would include only simpler forms since placing digital signature certificates via mobile would be difficult, the first official said.

This would be further aided by the recently amended disclosure rules under Schedule III of the Companies Act, which require firms to disclose debt ageing schedules, according to Ankit Singhi, partner at consultancy firm Corporate Professionals said.

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