Govt Plans Single E-compliance Window To Aid Ease Of Doing Business

SUMMARY

The Ministry of Corporate Affairs is in talks with relevant ministries for creating a single online platform for all kinds of compliance forms for companies

By integration databases of MCA with other ministries, the move will cut down on duplication of filing

Currently, companies have to make multiple filings, since different departments have different requirements

To enable India Inc’s seamless compliance with the various regulatory requirements, the government is planning to launch a single e-compliance window.

Sources told Economic Times that the Ministry of Corporate Affairs (MCA) is in talks with the Department for Promotion of Industry and Internal Trade (DPIIT), the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), to discuss the possibility of creating a single online platform for compliance forms with common data sources.

The objective of the move is to bring down duplication of filing and integrate databases of MCA with other concerned ministries. This is expected to enhance ‘ease of doing business’ for the companies.

Currently, companies have to make multiple filings, since different departments have different requirements and formats for submission of the required documents.

From easing the tax burden on angel investors to initiating the faceless assessment scheme as part of its ‘Transparent Taxation – Honouring the Honest’ platform, the government has introduced a slew of measures in recent times to further the ease of doing business for India Inc.

Earlier this year, Finance Minister Nirmala Sitharaman, while addressing concerns regarding the potential impact of the Covid-19 pandemic on companies’ finances, relaxed MCA filings for startups till September.

With respect to the MCA-21 registry, a moratorium was issued from April 1 till September 30, 2020. Sitharaman said there would be no additional fees on late filings.

Further, the FM relaxed the requirement to file declaration for the commencement of new business within six months, with six more months given to startups and businesses, making it one year from the commencement of business, among a slew of other measures to ease the burden of the financial disruption on companies amid the pandemic.

In June, MCA also amended the Companies (Share Capital and Debentures) Rules, 2014, allowing start-ups to issue sweat equity shares not exceeding 50 per cent of its paid-up capital.