What To Expect From the Revamping of the MCA’s Corporate Filing System?February 13, 2023
The Ministry of Corporate Affairs (MCA) has been revamping the corporate filing system for the past couple of years. This revamping has allowed corporations to get some relief from the strict compliance rules as the transition to a more virtual platform has let the filing processes become easier to navigate. This year, by March-end, the ministry aims to complete the reconfiguration of MCA21 portal and launch key features such as e-adjudication, e-consultation, and compliance management before this financial year ends.
Another portal in talks is a new national centre – the Centre for Processing Accelerated Corporate Exit – being set up for companies that wish to voluntarily exit the business. The e-adjudication system will help relieve the burden off the National Company Law Tribunal by dealing with corporate law violations, specifically ones compoundable in nature. The ministry has mentioned the introduction of artificial intelligence and machine learning to further facilitate ease of doing business.
Back in January, the MCA made statutory forms available for businesses on the revamped portal with tighter security and validation protocols. These forms include applications for a name of a firm, change in name, and applications for incorporating a company. Requests for registrations, such as goods and services tax and professional tax, employees’ state insurance scheme and employees’ provident fund are also available on the portal with these forms.
Previously built on a one-factor authentication system, the MCA21 portal adopted a two-factor authentication system to allow for greater accountability of professionals and personnel involved. Experts have welcomed these transitions as long as the ministry is receptive to feedback from the users to ensure a quick seamless functionality.
However, it would be a good idea to be a little careful as with any new system, there are bound to be some snags on the way to a perfect system. Even though the ministry did provide a reprieve of 15 days when the new portal was initially rolled out without any penalty for companies that had original filing dates during that period, it is best to be on the lookout for any issues that might cause a delay.