India’s First Mission Mode e Governance Project under NeGP

AVINASH SRIVASTAVA
Joint Secretary
Ministry of Corporate Affairs
Government of India

1
 VISION OF THE MINISTRY

To facilitate corporate growth with

enlightened regulation.

2
 Vision MCA21

•Reposition MCA

•To fulfill the aspirations of its stakeholders

•To achieve global competitiveness for the

21st century

Foundation for a healthy business eco

system
 MCA 21 Showcase

• The session showcase three

will perspectives:
– Ministry’s
– Operator’s : by TCS
– and Registrar’s Officeby Registrar of
Companies Delhi

4
 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 External
• Change Management – Internal
and (Stakeholders)
• Benefits to Government, Business, Public, FIs
• Continuous Business Change 5
 Business Drivers - Need for MCA21
Ever-increasing corporates
• More than 700,000 corporates
• About 6 crore pages maintained in files
• One lakh charge registrations per year
Limited Access Points
• Mostly one office per state
• Ever-increasing stakeholder base
Physical Presence Limited Payment Options
• Payments were to be made in
• Millions of corporate representatives
person
visit ROC office every year
• Only cash or Demand Draft
• Physical presence of company
accepted not even cheque
representative required for all
transactions
Long Queues Record Rooms Maintained Manually
• Slow manual collection and verification
process • Information availability to
• Unmanageable situation during peak stakeholders was time consuming
filing season of Oct-Nov-Dec and inaccurate
Paper Based Transactions
• Paper overload doesn't permit
other value added service
• Paper sorting, storage and
retrieval was very cumbersome
and time consuming
6
MCA21 – Transformation (since Jan, 2007
across the whole country)

Previous Current

7
 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

8
 MCA21 Implementation Strategy

• Service Delivery based PPP Model

• Consultative and Team Approach
– Unambiguous technical specifications (including
prototypes)
– Cross-functional team including expert from business
domain, financial modeling, IT, legal professionals with
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)

9
 MCA21 Change Management
INTERNAL
• Policy : Amendments to Companies Act enabling and
mandating electronic filing
• Employees: A large scale training and transformational
exercise, ensuring participation of all levels of employees,
with tacit support of boot partner. Each of the field office
was made part of the team to carry out transformation within.
EXTERNAL
• Involvement of Professional Institutes (ICAI, ICWI, ICSI) &
Industry Chambers.
• Countrywide Facilitation centers
• Certified Filing Centers (> 900 in numbers)
• Extensive Media Campaign – Educative & Informa10tive
 Innovations Used

• Electronic payment methods like Credit Card,

Internet Banking & 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 Through
Straight additional cost
Processing of with system
filings approval
• Introduction of Electronic Stamp
• System of Role-Check to verify antecedent of
the signatory
11
 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

12
 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 1-2 day
2. Public – to get easy access to records and get
their grievances redressed effectively Company incorporations 15 days 1-3 days

3. Professionals - to be able to offer efficient BS / AR Filing 60 days Instantaneous

services to their clients
Change in directors 60 days 1 day
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

6. Employees - empower to deliver best of • Revenue Increase from 7000 to 14000

services
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
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 Recon13ciliation
 Overview : Statistics at a Glance
(as on 11-02-2012)
Active Companies 762,000
Public Limited Companies 58,000
Private Limited Companies 704,000
Dormant Companies 153,000
Foreign Companies 3183
Listed Companies – BSE 5086
Listed Companies – NSE 1552
Companies under Liquidation 4612
Number of Limited Liability Partnerships 7952
registered under LLP Act
14
 Growth of Company Incorporation
100000

92080
90000

80000

70000
68088
65899 65139
60000

52524
50000

40000

30000

20000

10000

0
2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010 2010 - 2011

15
 Growth of Company Filings
700000

596988
600000

500000

451830
393305
400000

344992
300000 294519

200000
143925 163617
132073
118844
98262
100000

0
2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010 2010 - 2011

Annual Returns Charges (eform 8,10 & 17)

16
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, replacing
documents, etc.)
• Establishment of a dependable data for effective compliance
management
• Platform for further processes refinement
• Empowerment of the citizen/investor with authentic data about
companies through the Internet

18
 Recent Improvements
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
etc. message 19
 Recent Improvements (Contd..)
 More than 1.5 Million filings were received in
the months of Oct & Nov without any
hindrance which is 17% more than last year
 An all time high of 79,000 filings was
recorded on 29th Oct 2011.

20
 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

21
 Company Registration
1. 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 online
5. 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
22
 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
 THANK YOU

A GREEN PROJECT
SAVES 100 MILLION PAGES EACH YEAR!

avinash.srivastava@mca.gov.in

24