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MCA-21 is India's largest e-governance initiative by the Ministry of
Company Affairs and a mission project under the Government of India's National
e-Governance plan (NeGP). In February last year, MCA-21 was formally launched on
a pilot basis with a comprehensive online portal to enable e-Filing under the
project in Coimbatore. Currently, the initiative is functional nationwide across
20 offices of the Registrar of Companies, including New Delhi, Mumbai, Chennai,
Bangalore, Kolkata and Hyderabad.
The MCA-21 initiative is a flagship program being executed by the Ministry of
Company Affairs in partnership with TCS on a build, operate, own and transfer
model. Under the project framework, TCS is responsible for design and
implementation of the project; owning, operating and maintaining the system for
a period of six years after successful roll out at all sites.
What makes the MCA-21 a landmark project is that it is the largest full-scale
deployment of Information Technology, in the shortest possible time frame, and
will revolutionize the way corporate India interfaces with the government. The
primary purpose of the MCA-21 program will bring about a service transformation
in terms of ease of use and is slated to be a benchmark e-governance project in
the country.
Supporting the Boom
The Indian economy is growing at a huge pace. The growing size of the Indian
economy is exerting institutional pressures and challenges in dealing with
increasing transactions involving the corporate entities. The Ministry of
Company Affairs was not equipped to the desired level in terms of institutional
arrangements and processes to support the growth of the economy. There was no
technology-enabled solution to ease the work pressure as well as streamline the
conventional paper-based working system.
In terms of capacity, the burden appeared to be awesome. The number of
organizations registered with the RoCs and the MCA head office and Regional
offices of MCA has seen increasing number of transactions in terms of
registration, fillings, billings and so on. The number of companies in India
stands at over 7 lakh. Among these, more than 5 lakh have been constituted in
the last 12-15 years, and the figure is going to escalate further. With this,
transactions and activities have increased many folds.
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MCA-21:
The Features |
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No longer would it
require visiting the regional Registrar of Company Offices by various
corporations, professionals and the public. Instead they can interact
with the MCA offices via the nationwide portal from anywhere, anytime
or through facilitation centers.
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Multiple options
are made available for users for payment of bills, fee etc especially
online either through credit cards or by availing Internet banking
facilities. Besides this, the traditional payment through demand draft
would be accepted against a system-generated challan at more than 200
bank branches across the country.
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The concept of
Director Identification Number (DIN) has been introduced, that is a
unique and lifetime identification number issued to all current and
prospective directors. The ministry has made it mandatory for all
directors who wish to interact with the ministry in future to acquire
a DIN.
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Users and
stakeholders need to take recourse to a Service Request Number (SRN)
to enable them to track any service request.
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Electronic
submission of forms has been facilitated, for which a unique Digital
Signature Certificate (DSC) is required. It is mandatory for all
stakeholders and users who would interact with the ministry to have a
DSC. In the absence of DSC, it would not be possible to file the
returns and other statutory compliance related filings.
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The system has been
secured well and a lot of redundancies built inside to make sure that
the services are continuously available in a 24x7 time frame.
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A separate and full
functionality disaster recovery system being implemented along with
the primary data center to deal with any contingencies. In event of a
man-made or a natural disaster, the system would switch over to the
disaster recovery set-up within 12 hours.
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New e-forms to be
notified for firms and companies.
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The Corporate
Identification Number (CIN) is a prerequisite for e-filing.
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Provisions for
cross-referencing of financial statements of companies.
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A one-stop filing
window has been created for companies/corporate bodies and firms to
file just once for all government-related purposes and commitments.
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Number of locations
for interfacing with the Registrar of Companies has been enhanced
through more physical front offices.
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Every authorized
signatory and practicing professional needs to obtain digital
signature certificates.
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Facilitating Compliance
Through e-enabling of various services, the project is poised to facilitate
creation of single windows for clearance of projects and schemes, and evaluation
of the same. This way business and governance could be made easier for the
governments. With the corporate sector soon to align with new processes more
closely, compliance to relevant norms and procedures will be made easier and
faster through integrated service delivery and reengineered existing processes.
While enabling a one-stop filing window the project will enable companies and
corporate bodies and firms to file just once for all government-related purposes
and commitments.
Transparency and efficiency are seen as twin hallmarks of the project. It is
also expected to make Indian businesses more competitive globally.
While the electronic information and transaction system is expected to cut
upon the hurdles of space and time significantly, it would also fill the
loopholes of circumspection and red tape imposed by the finite nature of a
manual and paper-operated system. Costs incurred in nationwide trade and
official trade transactions are also expected to come down significantly through
creating virtual offices on the web. The services of back and front offices are
fundamental in the entire process.
All business processes and services of the office of the Registrar of
Companies are made available on the e-Governance Mode. These services can be
accessed only through the MCA portal. The MCA-21 program will bring about a
service transformation in terms of ease of use and is slated to be a benchmark
e-Governance project in the country.
Banks and financial institutions are likely to benefit extensively from
online availability of information relating to companies. They can avail the
advantages of this information in improving credit evaluation procedures and the
quality of credit extended to the corporate sector and the like. Further, the
project will have the facility to provide for cross-referencing of financial
statements of companies filed with the registrar of companies and other
regulatory institutions like the tax authorities, RBI and SEBI.
The Road Ahead
Several issues have been identified that have the potential to make trouble
for MCA-21 and its implementation across the board. The success of projects of
this nature depends on the successful and smooth management of change:
procedural, technological and cultural.
Getting into a working mode with the new system especially filling up
e-forms, using digital signatures, dealing with Director Identification Number
(DIN), Corporate Identification Number (CIN) is likely to create some initial
hiccups. For instance, to get a DIN will not be easy. The database of directors
of all companies is presently being processed only at Noida (Uttar Pradesh)
without any other alternate route.
The success depends on speeding up plans to enable outreach through virtual
front offices that are being created under the project. Also these offices
should be in a position to provide Internet-based services at work and home of
potential clients.
Another challenge is scanning and digitization of such large volumes of
documents (60 mn company documents). The task is time and schedule demanding.
To effectively change from paper-based transaction to electronic ones, there
is need for a transformation in the mindsets of those who will be handling the
project. Adaptation to the new mode of operation and transactions based on
electronic processes is quintessential to reap the multiple benefits associated
with MCA-21.
Other issues include identifying and earmarking space for setting up scanning
stations close to the record rooms at each of the RoC offices, weeding out
records, preparing record files, segregating documents to be scanned, preparing
an index of the same, restoring documents into the company files and so on.
Under the contract, TCS is making sure that the initiative is successful. The
vendor has opened centers called Physical Front Offices (PFO) at 53 locations
throughout the country. At these PFOs, authorized facilitation personnel will be
deployed to help stakeholders switch over to the new system.
Bhaswati Chakravorty
bhaswatic@cybermedia.co.in Page(s) 1
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