New Facility for fast Company Registration & Company Strike Off

As per the sources, plans are underway to implement a centralization of decision-making for all regulatory forms filed by companies.

Thus, the responsibility for these decisions, currently held by Registrars of Companies (RoCs), will be transferred to a centralized facility by December.

Presently, only decisions regarding applications for voluntary company strike off are centralized, facilitating the exit process for companies without assets or liabilities.

New Centralized System for Processing Regulatory Forms

According to the source, by December, all regulatory forms will undergo centralized processing.

The objective is to ensure a business-friendly environment that promotes easy entry through Company Registration, smooth exit.

Furthermore ensuring overall convenience for enterprises.

This shift is expected to be a significant milestone in enhancing the ease of doing business.

The Ministry of Corporate Affairs is presently finalizing the necessary changes in regulatory processes to implement this project.

It is important to note that this initiative is separate from the ongoing technological upgrade of the MCA21 portal.

The technological upgrade involves upgradation of portal companies and limited liability partnerships (LLPs) currently file their regulatory forms.

Centralized Processing of Regulatory Forms Expected

While companies will continue to file their submissions through the same portal, the proposed centralization of decision-making for company registration or company strike off involves transferring the backend processing of forms from RoCs to the new facility.

Certain regulatory forms have already been streamlined into a “straight-through-process” (STP) or “file-and-forget” mode, which eliminates the need for RoC approvals and only requires an acknowledgment.

The objective of centralizing the processing is to enhance uniformity and objectivity in decision-making, while also improving efficiency and speed.

This initiative was announced by Nirmala Sitharaman, the finance and corporate affairs minister, in this year’s Union budget.

Conclusion

The establishment of this new facility for company registration and company strike off will result in accelerated processing of forms, ensuring uniformity and clarity for users. The absence of a user interface will contribute to a reduction in corruption. Moreover, this will alleviate the workload of RoCs, allowing them to concentrate on other tasks such as conducting inquiries, inspections, and investigations. Ultimately, this initiative will greatly enhance the business environment and promote the ease of doing business in India.