New Delhi: The MCA21 portal, on which about 1.5 million active companies file their statutory documents, has been rebuilt from scratch and is now making the transition to a high-security filing regime. After professionals like accountants complained about difficulties in filing documents, the ministry of corporate affairs held extensive public consultation across multiple cities in June and is closely monitoring the functioning of the portal revamped by a private service provider. So, has the new corporate reporting regime taken off? Mint takes a look.
What is the status of MCA21 portal upgrade?
Upgrading the corporate reporting platform is a key e-governance project of the government. The revamped version has been built from scratch by LTIMindtree and the filing of forms is being migrated to the new version, called V3. So far, over 50 important corporate reporting forms have been migrated to the new version and another 30 are to be shifted to the new version. Once that is done, the revamp will be complete. The new version of forms are web-based, compared to PDF documents uploaded earlier. These forms allow real-time validation of data at the time of filling of forms, based on information already available with the authorities.
How will the new version of the portal help?
V3 has deployed enhanced security features and makes use of artificial intelligence to process data. It entails 'two-factor' authentication for filing forms. Because of this, forms cannot be filed without the knowledge of the authorised person in a company which reduces the possibility of fraud. Also, the government can easily analyse data and detect trends in corporate practices and governance lapses for timely intervention. Any default in reporting requirements by the due date will be brought to the notice of the company concerned and the regulator immediately by the system. Once the revamp is completed, the government will introduce an e-adjudication facility for companies to settle disputes electronically.
What is the next set of forms to be migrated to V3?
The most important of the forms to be moved to the revamped portal are form AOC-4 for filing financial statements and form MGT-7 for filing annual returns. The government is expected to take a call on the timing of this shortly. These are to be filed in the October-November months.
Has the system stabilized?
According to information available from the ministry, 190,000 company incorporation forms have been filed in V3 between April and July this year compared to 160,000 in the previous version at the same time a year ago. Close to 2 million forms have been filed in V3 portal in the April to July period. Also, more LLPs have been incorporated this fiscal so far compared to the year-ago period. According to persons informed about the working of the portal, the platform has stabilized. However, given the scale of the project, some professionals still seek help in resolving difficulties. The ministry’s help desk is actively engaging with users of the platform on social media to resolve their grievances. Each active company has to file around 100 statutory forms under the Companies Act. The requirement for the IT system is huge given that there are 1.5 million active companies in the country.