1. mca 21
DESCRIPTION
TRANSCRIPT
India’s First Mission Mode e Governance Project under NeGP
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AVINASH SRIVASTAVA Joint Secretary Ministry of Corporate AffairsGovernment of India
VISION OF THE MINISTRY
To facilitate corporate growth withenlightened regulation.
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Vision MCA21
Foundation for a healthy business eco system
•Reposition MCA
•To fulfill the aspirations of its stakeholders
•To achieve global competitiveness for the 21st century
MCA 21 Showcase
• The session will showcase threeperspectives:– Ministry’s– Operator’s : by TCS– and Registrar’s Office by Registrar of
Companies Delhi
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Ministry Perspective• Need, Vision & Strategy for MCA21
– PPP using BOOT model– Independent PMU– 3rd Party Audit– Certification by Project Consultant– Government committees: Empowered
Committee, Apex Committee• Policy Enablement & Legislative support• Change Management – Internal and External
(Stakeholders)• Benefits to Government, Business, Public, FIs• Continuous Business Change
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Business Drivers - Need for MCA21
• More than 700,000 corporates• About 6 crore pages maintained in files• One lakh charge registrations per year
• Millions of corporate representatives visit ROC office every year
• Physical presence of company representative required for all transactions
• Slow manual collection and verification process
• Unmanageable situation during peak filing season of Oct-Nov-Dec
• Mostly one office per state• Ever-increasing stakeholder base
Ever-increasing corporates
Limited Access Points
Physical Presence
Long Queues
• Payments were to be made in person
• Only cash or Demand Draft accepted not even cheque
• Information availability to stakeholders was time consuming and inaccurate
Record Rooms Maintained Manually
Limited Payment Options
• Paper overload doesn't permit other value added service
• Paper sorting, storage and retrieval was very cumbersome and time consuming
Paper Based Transactions
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Previous Current
MCA21 – Transformation (since Jan, 2007 across the whole country)
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Scope of Services – MCA21
• Name Approvals• Incorporation of new companies• Filing of annual statutory returns• Grant of all approvals• Easy access to public records of companies to all stakeholders• Grievance redressal• Compliance management & effective regulation• Platform for implementing value-added services• Interoperability with other Government Department /
Ministries/Regulators
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MCA21 Implementation Strategy
• Service Delivery based PPP Model• Consultative and Team Approach
– Unambiguous technical specifications (includingprototypes)
– Cross-functional team including expert from businessdomain, financial modeling, IT, legal professionalswith participation from professional institutes
• Modernization of offices• Process Re-engineering to adapt to a technology-
enabled environment• Migration of legacy data (45 Million pages digitized)
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MCA21 Change ManagementINTERNAL• Policy : Amendments to Companies Act enabling and
mandating electronic filing• Employees: A large scale training and transformational
exercise, ensuring participation of all levels ofemployees, with tacit support of boot partner. Each ofthe field office was made part of the team to carry outtransformation within.
EXTERNAL• Involvement of Professional Institutes (ICAI, ICWI, ICSI)
& Industry Chambers.• Countrywide Facilitation centers• Certified Filing Centers (> 900 in numbers)• Extensive Media Campaign – Educative & Informative10
Innovations Used
• Electronic payment methods like Credit Card, InternetBanking & recently introduced NEFT type of payment
• Elimination of repetitive data using ‘pre-fill’• Automated pre-scrutiny to ensure accuracy of data• Authentication of forms via DSC• Utilization of publicly available software so that end-user
did not incur any additional cost• Straight Through Processing of filings with system
approval• Introduction of Electronic Stamp• System of Role-Check to verify antecedent of the
signatory11
MCA21 – Best Practices ‘Blue print’ Approach – RFP Document Holistic outsourcing – PPP Model Digitization of legacy – assembly line approach RFO – Addressing Digital Divide Outcome (SLA) based monitoring Back office workflow – productivity management Straight through approval process PMU for strategic and operational monitoring Green project – eForm & eStamp
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1. Business – enabled to register a company and file statutory documents quickly and easily
2. Public – to get easy access to records and get their grievances redressed effectively
3. Professionals - to be able to offer efficient services to their clients
4. Financial Institutions – to find registration and verification of charges easy
5. MCA – to ensure proactive & effective compliance and corporate governance
6. Employees - empower to deliver best of services
Nature of Service Prior to MCA21 After MCA21
Name Approval 7 days 1-2 day
Company incorporations 15 days 1-3 days
BS / AR Filing 60 days Instantaneous
Change in directors 60 days 1 day
Inspection of public documents
Visit to ROC Online
Facilities for On-line end-end interaction with MCA services on portal
Provides Any Time, Any Where access to MCA services on a 24X7 basis
• Revenue Increase from 7000 to 14000 Million Rupees
• ZERO Revenue Leakage• National Charge Database Established
• Used by all Banks & FIs before loan disbursal to companies
• Automation of all Internal Functions• Transaction-wise Payment Reconciliation
Project Objectives and Realization
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Overview : Statistics at a Glance (as on 11-02-2012)
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Active Companies 762,000Public Limited Companies 58,000Private Limited Companies 704,000Dormant Companies 153,000Foreign Companies 3183Listed Companies – BSE 5086Listed Companies – NSE 1552Companies under Liquidation 4612Number of Limited Liability Partnerships registered under LLP Act
7952
Growth of Company Incorporation
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52524
65899 6513968088
92080
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010 2010 - 2011
Growth of Company Filings
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294519
344992
393305451830
596988
98262118844 132073 143925 163617
0
100000
200000
300000
400000
500000
600000
700000
2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010 2010 - 2011
Annual Returns Charges (eform 8,10 & 17)
MCA Website
MCA21 – Key Achievements
• Procedural uniformity across all offices• Speed and certainty of service delivery, with ease of access• Transparency – status of processing of filings and approvals• Problem of malpractices inherent with a paper-based system
addressed (such as ante-date filings, incomplete filings, replacingdocuments, etc.)
• Establishment of a dependable data for effective compliancemanagement
• Platform for further processes refinement• Empowerment of the citizen/investor with authentic data about
companies through the Internet
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Recent Improvements
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Trouble free Peak Filing:October and November each year are the peakfiling season for Balance Sheets and AnnualReports
The Ministry set in motion advance readinessaction plan
software optimization
hardware augmentation
appeal to corporates to stagger filingsthrough media campaigns, portal messageetc.
Recent Improvements (Contd..)
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More than 1.5 Million filings were received inthe months of Oct & Nov without anyhindrance which is 17% more than last year
An all time high of 79,000 filings wasrecorded on 29th Oct 2011.
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MCA21 adds new PARADIGM - XBRL
Companies mandated to file in XBRL mode in Phase I (FY 2010-11 onwards i.e. balance sheet date as 31.03.2011 or onwards)–• All listed companies and their Indian subsidiaries, • All companies having a paid up capital of Rs 50 Million or
more, • All companies having a turnover of Rs 1000 Million or above
Banking companies, insurance companies, power companies and NBFCs registered with RBI exempted from XBRL filing for this financial year as their respective taxonomies are under development
As on Date more than 23500 companies have successfully filed their documents in XBRL
Company Registration1. Obtain Director Identification Number (DIN) online by giving
name, fathers’ name, date of birth, address, and Income Tax permanent account number of the proposed director
2. Foreign national has to give passport details in place of Income Tax permanent account number
3. Obtain Name of the proposed company by filing application online. Normally Name is made available online / within 24 hours.
4. Process developed to give Name immediately online5. File Incorporation documents such as
Memorandum, Articles, particulars of promoters, directors and place of registered office of the company.
6. Incorporation Certificate is now issued online between 24-48 hours
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AWARDS WON
DATAQUEST Path breaker
Award for 2006
National e-Governance Award
for 2007 for Business
Process Re-Engineering
DATAQUEST e-Governance
vendor award for 2007
Prime Ministers Award for
excellence in Public
Administration