5. Rapid Corporate Growth - Issues
Limited number of MCA offices and
manpower against rapid growth of
companies
Long, unmanageable queues
Slow manual collection & verification
process
Payment options limited
Paper sorting, storing/retrieval are
very cumbersome, time-consuming
and error prone
Information availability to stakeholder
is time consuming and error prone
Inadequate compliance monitoring
Quality deterioration in delivery of
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services
6. Advent of MCA21 on 3 propositions
1. e-Governance is not about ‘e’
… but about Governance
2. e- Governance is not computerization
… it is the transformation of the
way Government serves its
citizens & businesses
3. e-Governance involves adoption of a
holistic approach to provide services
MCA21 is designed to be a true
e-Governance project in all respects
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7. Business Drivers – the need for MCA21
Ever-increasing corporates Physical Presence Limited Payment Options
• More than 700,000 corporates • Payments were to be made
• Millions of corporate representatives in person
• About 6 crore pages maintained in files visit ROC office every year
• Only cash or Demand Draft
• One lakh charge registrations per year • Physical presence of company accepted not even cheque
representative required for all
transactions
Limited Access Points Long Queues Record Rooms Maintained
Manually
• Mostly one office per state • Slow manual collection and
• Ever-increasing stakeholder base verification process • Information availability to
• Unmanageable situation during peak stakeholders was time
filing season of Oct-Nov-Dec consuming and inaccurate
Paper Based Transactions
• Paper overload doesn't permit
other value added service
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• Paper sorting, storage and
retrieval was very cumbersome
and time consuming
9. Project Objectives and Realization
1. Business – enabled to register a company
Nature of Service Prior to MCA21 After MCA21
and file statutory documents quickly and
easily
Name Approval 7 days 1 day
2. Public – to get easy access to records and
Company incorporations 15 days 1-3 days
get their grievances redressed effectively
3. Professionals - to be able to offer efficient BS / AR Filing 60 days Instantaneous
services to their clients
Change in directors 60 days 3 days
4. Financial Institutions – to find registration Inspection of public Visit to ROC Online
and verification of charges easy documents
5. MCA – to ensure proactive & effective
compliance and corporate governance
• Revenue Increase from 700 to 1200+ Cr
6. Employees - enabled to deliver best of
• ZERO Revenue Leakage
services
• National Charge Database Established
Facilities for On-line end-end interaction with • Used by all Banks & FIs before loan
MCA services on portal disbursal to companies
Provides Any Time, Any Where access to MCA • Automation of all Internal Functions
services on a 24X7 basis
• Transaction-wise Payment Reconciliation
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10. MCA21-Features
• Anytime Anywhere services (24*7*365) enabled
• Automated pre-scrutiny of e-forms
• Verification of credentials of the authorised signatory (DSC and role
check)
• Convenient multiple modes of payment (Credit cards, Internet banking
and physical challans)
• FIFO based, electronic workflow driven, paperless Back office
• Electronic record maintenance preventing quality deterioration
• Institutional arrangement for Project Management and public interface
(PMU)
• Defined performance metrics for Service Level maintenance
• Contractual enforcement of service levels, including a system of
incentives and penalties as part of the commercial terms
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11. Milestones
Sep, 2002: Project concept initiated
Oct, 2003: Bidding process initiated
Feb, 2004: Formal issue of RFP Document
Feb, 2005: Cabinet Approval
Mar, 2005: TCS Contract Signed
Feb, 2006: Coimbatore pilot launched
Mar, 2006: Delhi pilot launched
Jul, 2006: Completed Nationwide rollout
Sep, 2006: e-Filing mandated
Jan, 2007: Scanning/digitization completed
Jan, 2007: Provisional certification Accorded
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12. Visible 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, replacing
documents, etc.)
Establishment of a dependable data for effective compliance
management
Platform for further processes refinement (e.g. central registry)
Empowerment of the citizen/investor with authentic data about
companies through the Internet
Introduced e-stamping from 13th Sept 2009 making incorporation
completely paperless
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13. Recent Improvements (2009-10)
E-Stamping:
Introduced E-Stamp from September 2009 as secure, fast and clean
system of stamp duty collection
Joint initiative – MCA, States/ UT and Banks
Dispensed with effort and cost to physically visit the treasury and
saved time
A prominent Green initiative in MCA21 leading to reduction in paper
usage to the extent of 40 lakh pages so far
Emerged as a Model program for replication
New e-Form for rectification of error:
Introduced new e-form (Form-68) in Mar’10; enables corporate to
rectify mistakes in Incorporation documents through electronic
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process.
14. Recent Improvements (cont..)
“Company Law Settlement Scheme, 2010” gives
opportunity to the defaulting Companies to enable them to make their
default good by filing belated documents and to become a regular
compliant in future.
“Easy Exit Scheme, 2010” and “Easy Exit
Scheme, 2010” gives opportunity to the defunct companies to
get their names struck off from the register under Section 560 of the
Companies Act, 1956. The EES 2011 was closed on 30.04.2011. Total
36 thousand companies has applied for struck off under section 560 of
the companies Act, 1956 in both the schemes.
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15. Recent Improvements (cont..)
Trouble free Peak Filing:
•October and November each year are the peak filing season for
Balance Sheets and Annual Reports
•The Ministry set in motion advance readiness action plan –
• software optimization
• hardware augmentation
• appeal to corporates to stagger filings through media campaigns, portal
message etc.
•More than 12.87 lakh filings were received in the months of Oct & Nov without
any hindrance which is 20% more than last year
•An all time high of 70,000 filings was recorded on 29th Oct 2010 that includes
22,000 balance sheets.
Integration with other regulators:
End-to-end integration with Trademarks Authority through NSDG for informed
regulation is nearing completion. 15
16. Recent Improvements (cont..)
DIN process re-engineering
Application for DIN is being made on eForm
and there is no need for submitting
documents physically scanned documents
along with verification by the applicant will be
attached with the eForm and if the eForm is
digitally signed by professional or by MD /
Director / Secretary of the existing company,
DIN shall be granted online. This will reduce
the time taken for allotment of DIN from 7-10
days to 1-2 days.
17. Recent Improvements (cont..)
Challan Payment is not allowed for payment
upto Rs.50000/-
From 2, 3, 18, 32 are made as STP (State
through put process) w.e.f. 01.05.2011 and
eForms are to be added in this category. This
will reduce the ROC workload by around
40%.
18. Recent Improvements (cont..)
Introduction of refund Process
There is no refund process in MCA21 for
refund of fee wrongly paid by the user till
recent. Now w.e.f.01.05.2011 the MCA has
allowed refund by way of filing a new refund
eForm for cases of Multiple payments,
incorrect payment or excess payments.
19. Operational Statistics (as on 31.01.2011)
Average portal hits/ pages viewed per day – 40 lac/ 5 lac
Total filings through the system – 126.76 lac
Peak filing on a single day (on 29.10.2010) – 70,034
Number of companies registered online – 3.42 lac
Company records viewed online – 15.58 lac
Total DIN issued – 20.02 lac
Number of E-stamp transactions – 1.65 lac
Amount of E-Stamp collected – Rs. 25837 lac
E-filing through VFO (Virtual Front Office) – 93%
Online payment transactions (by volume) – 64%
Revenue collection multiplied three fold
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20. Impact on Service delivery efficiencies
Nature of Service Prior to MCA21 After MCA21
Name Approval: 7 days 1-2 days
Company Incorporation: 15 days 1-3 days
Change of Name: 15 days 3 days
Charge Regn./ Modification: 10-15 days 2 days
Certified Copy: 10 days 2 days
Registration of Other Documents
Annual Return 60 days Instantaneous
Balance-sheet 60 days -do-
Change in Directors 60 days 1-3 days
Change in Regd. Office Add. 60 days 1-3 days
Increase in Auth. Capital 60 days 1-3 days
Inspection of Public Documents On-line
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Focus on delivery of all business critical services in 48 – 72 hours
21. Regulatory efficiency
Easily accessible disclosures of corporate processes and
decisions
Speedy and more effective enforcement action including
scrutiny and inspections without harassment.
Analysis of financial information of companies to detect
accounting and disclosure compliance
Easy to access registry of charges providing critical credit
information about the company.
Analysis of company data to develop risk management
systems to detect abnormalities in financial information
filed by companies and assessment of possibility of fraud.
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22. MCA21 – Best Practices in e-
Governance
‘Blue print’ Approach – RFP Document
Holistic outsourcing – PPP viability
Digitization of legacy – assembly line approach
RFO – Addressing Digital Divide
DSC – largest usage worldwide
Back office workflow – productivity management
Gateway – simplifying interoperability
Green project – eForm & eStamp (paper elimination)
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23. Recognitions
Golden Icon’ in 11th National e-Governance
Conference 2008
Dataquest IT Path Breaker Award 2006
“Skoch Challenger Award 2008”
‘Certificate of Excellence’ at Technology
Sabha, 2008
Recognized as “a revolutionary step by the
Government” in a survey conducted by Ernst
& Young
Prime Minister Award for Excellence of Public
Administration – 2009
The World Bank in its report has acclaimed E-
stamping initiative of the Ministry as one of
the significant achievement globally.
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24. Current Issues
Finalisation of Exit Management Plan
Changing role of PMU
Formation of SPV
Government Secure Repository (GSR)
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25. The Way Ahead
Integration with the other regulators - Income Tax,
Trade Mark
Expansion to new services – LLP, OL
Early alerts – aid in prevention of corporate frauds
Data Mining
XBRL for annual statutory filing
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