Overview of the MCA 21 Project (Mr. Avinash K. Srivastava, India)

1. MCA21 e-Governance Project
of
Ministry of Corporate Affairs
Government of India
Presentation for CRF 2011
09.05.2011-12.05.2011
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2. Vision and Charter
Vision
To facilitate corporate growth with enlightened regulation.
Charter
Administration of
-Companies Act, 1956
-Limited Liability Partnership (LLP) Act , 2008
-Competition Act, 2002
-MRTP Act, 1969
-Partnerships Act, 1932
-Societies Registration Act, 1861
-Chartered Accountants Act, 1949
-Cost & Works Accountants Act, 1959
-Company Secretaries Act, 1980 2

3. Organisation structure & Functions
Organisation set-up
1.MCA –Head Quarter
2.Office of DG(CA) -being established
3.Field offices
• 6 Regional Directorate
• 20 Registrars of Companies
• 19 Official Liquidators
Functions
1. Regulator
• Enforcement
• Inspections/Investigations etc.
2. Service delivery of regulatory action
• e-Governance
• Approvals
3. Develop Regulatory Framework
• Legislative proposals
4. Corporate Governance
5. Investor Education and Protection
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4. Corporate Growth (beginning 1956)
YearNumber
195729357
196026897
197029009
198056493
1990202128
2000542434
2010 (P)846434293572689729009
56493
202128
542434
846434
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1957196019701980199020002010
(P)
Number
4

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
services
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6. Advent of MCA21 on 3 propositions
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1.e-Governance is not about ‘e’
… but about Governance
2.e-Governance is not computerization
… it is the transformationof 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

7. Business Drivers –the 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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8. Previous Current
Cont…..
The Transformation
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9. 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 -enabled to deliver best of
services
Nature of Service Prior to MCA21AfterMCA21
Name Approval 7 days 1day
Company incorporations 15 days 1-3days
BS / AR Filing 60 days Instantaneous
Change in directors 60 days 3days
Inspection of public
documents
Visit to ROCOnline
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 700 to 1200+ Cr
•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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10. MCA21-Features
•AnytimeAnywhereservices(24*7*365)enabled
•Automatedpre-scrutinyofe-forms
•Verificationofcredentialsoftheauthorisedsignatory(DSCandrole
check)
•Convenientmultiplemodesofpayment(Creditcards,Internetbanking
andphysicalchallans)
•FIFObased,electronicworkflowdriven,paperlessBackoffice
•Electronicrecordmaintenancepreventingqualitydeterioration
•InstitutionalarrangementforProjectManagementandpublicinterface
(PMU)
•DefinedperformancemetricsforServiceLevelmaintenance
•Contractualenforcementofservicelevels,includingasystemof
incentivesandpenaltiesaspartofthecommercialterms
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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 13
th
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
process.
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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 29
th
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.
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16. 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.
Recent Improvements (cont..)

17. 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%.
Recent Improvements (cont..)

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 MCA21After 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
Focus on delivery of all business critical services in 48 –72 hours
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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 11
th
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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26. Thank You
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