The ministry of corporate affairs on Monday started moving a large part of the corporate reporting process to the revamped compliance portal, MCA21, and has given more time for businesses to file key statutory documents without additional fees.
The ministry of corporate affairs on Monday started moving a large part of the corporate reporting process to the revamped compliance portal, MCA21, and has given more time for businesses to file key statutory documents without additional fees.
As part of the move, 45 statutory forms will be made available on the MCA21 portal by 22 January, out of which 10 forms related to the incorporation of companies were uploaded on Monday. The updated forms have tighter security and validation features.
According to an order published on the ministry's website, all the 45 forms will not be available on the old portal till the migration is completed on 22 January. Businesses have been given 15 days extra to file applications without additional fees if their due date falls during this period.
The portal replaces the PDF format forms with web-based forms, which use IT tools for improved user experience and ensures more efficient regulatory monitoring of businesses. It allows authorities to detect financial stress, as well as governance lapses in companies at an early stage.
The ministry said the deadline will be extended by 15 days at no extra cost for entities reporting an appointment or resignation of directors, requests for director identification number, declaration in starting a business, conversion of public company to private, and vice versa, and for changes in share capital.
The forms made available on the new system on Monday include applications for a name of a firm, change in name, and applications for incorporating a company, and request for registrations such as goods and services tax and professional tax, employees' state insurance scheme and employees' provident fund.
Experts said the present system was built on a one-factor authentication and was easy to access information. "The new system is more focused and is built with two-factor authentication, which seeks to fix the accountability of professionals and personnel involved in the incorporation as well as other filings," Amit Maheshwari, tax partner, AKM Global, a tax and consulting firm, said.
Experts welcomed the transition to a more sophisticated filing system and said initial teething issues faced by filers will be solved by relaxing the deadlines and through a real-time redressal mechanism.
Hemant Krishna, partner at Lakshmikumaran & Sridharn Attorneys, said there maybe a few initial glitches. Users may have problems with sign-ups, or abrupt time-outs, payment gateway errors and downloading forms after filling or submitting, he added. "Given how critical the forms are for 'ease of doing business', the ministry will do well to lend a keen ear to users after the forms are uploaded on the MCA21 portal so that the glitches can be remedied swiftly."