FM Smt. Sitharaman emphasises simplification in processes and making systems more user friendly to facilitate Nation’s march towards Viksit Bharat 2047

Governance must be easy, transparent and facilitative, says FM; Stresses on MCA to adopt a futuristic approach

Frequent legislative reforms like IBC reflect India’s responsiveness to changing times: Union Finance Minister

MCA must follow motto of maximum governance and minimum government: MoS MCA Shri Harsh Malhotra

Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a meeting to review the Regional Directorates and Registrar of Companies, in New Delhi.

The review meeting was also attended by Union Minister of State for Corporate Affairs Shri Harsh Malhotra; Secretary, Ministry of Corporate Affairs (MCA); along with all the senior officers of MCA and all the subordinate offices under MCA.

During the meeting, detailed interactions and discussions were held with Registrar of Companies (ROCs) and Regional Directorates (RDs) on issues of processing of forms, fast track mergers, delivery of services like incorporation /voluntary exit of Companies/LLPs through the Central Facilities, e-governance, harmonisation of forms, matters related to adjudication, inquiries, inspection and investigation (3Is) manuals, prosecution, appeals against adjudication orders, compounding of violations  etc.

MCA Secretary informed the Union Finance & Corporate Affairs Minister that the MCA has standardised its manuals on enforcement and further process and rule simplification for transparent and timely delivery of services is already underway.

During the review meeting, the Union Finance Minister directed MCA that a live dashboard may be built to ensure that more transparency is brought to the systems in MCA.

By 2047, Smt. Sitharaman said, India needs to be a developed country as envisaged by Prime Minister Shri Narendra Modi. This vision can only be realised if timely modernisation of the systems and processes take place. The Union Finance Minister said that today is the era of governance, and therefore MCA's driving principle should be to make governance easy, transparent and with focus on facilitation. MCA must strive to be futuristic to be able to serve stakeholders in a time-bound manner.

Smt. Sitharaman stated that the MCA has taken out frequent and required amendments in The Act and Rules to keep up with changing times, Insolvency and Bankruptcy Board is one such example of a reform-driven law. This is done to ensure that the systems are responsive to the needs of today’s India.

FM Smt. Sitharaman credited Indian corporate governance for gaining the trust of citizens by providing transparent financial information. The Union Finance Minister emphasised the importance of MCA’s role in guiding and regulating companies to ensure their governance structures are well-managed.

As a way forward, the Union Finance Minister exhorted the MCA officials to find effective ways to convey legal requirements to stakeholders and also suggested holding frequent in house discussions to suggest measures for enhancing EODB

In his address during the interaction, Shri Malhotra said that MCA must follow the motto of maximum governance and minimum government, as guided by the leadership of Prime Minister Shri Narendra Modi.

Shri Malhotra stated that MCA must conduct exercise to rationalise and reduce the forms vis-avis compliance burden on people. He suggested that frequent interactions with stakeholders will help to resolve issues in time. He also suggested that MCA can explore to host a corpus of electronic guidance in the form of videos and presentations to help stakeholders further. Shri Malhotra also laid emphasis on time bound processes to benefit the end beneficiary.

MCA to simplify corporate compliance, harmonise forms, build live dashboard for transparency and ensure time bound processes for stakeholders. Directives emphasise simplifying corporate regulatory processes by harmonising forms, standardising enforcement and 3Is manuals, compounding procedures, faster processing of incorporation/voluntary exit and fast track mergers, reducing compliance burden, providing electronic stakeholder guidance, and building a live dashboard to enhance transparency and ensure time bound delivery of MCA services.