MCA considers overhaul of compliance regime

A mobile app for company deposits, pre-filled forms and less compliance – after an exercise aimed at reducing the number of criminal offenses under company law, the Ministry of Corporate Affairs offers a complete overhaul of the compliance system for companies to facilitate their business operations.

A senior government official told ET that the new system with these features will be rolled out from October. This will drastically reduce compliance requirements for businesses and be a “more trust-based system,” the official added.

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

The new MCA21 V3 platform which replaces MCA21 V2 will be deployed in two phases. A revamped website with features like e-viewing and e-books will launch in April-May, while more comprehensive features like pre-filled web forms and the mobile app will roll out by October, a declared the responsible.

“Major elements such as the business module, LLP (limited liability partnership), application module, compliance management system, everything will go live in October, ”said another official.

Although some fields such as balance sheet and profit and loss account figures will need to be filled in manually, most of the portal forms will be converted to pre-filled web forms from the current PDF versions, which should reduce the time. and the resources devoted to compliance.

The update will signal a shift to a more trust-based regime by removing attachments from various reports for verification, but with adequate controls.

The mobile application would be equipped with features such as e-consultation allowing users to provide comments on bills directly online, an e-book for instant reference and sharing of all laws and rules relating to the affairs of the country. business and access to the master data registry, officials said.

Most of the website’s front-end functionality would be built into the app, but these would only include simpler forms as it would be difficult to place digital signature certificates via mobile, the senior official said.

This would be further facilitated by the recently amended disclosure rules in Schedule III of the Companies Act, which require companies to disclose aging debt schedules, according to Ankit Singhi, partner at consultancy firm Corporate Professionals.

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