Centre To Introduce New Company Registration System Next Month: Report

The Central government is reportedly planning to introduce a new system for the registration of companies. As per a report, this new company registration system is expected to be introduced next month, in December itself. The main idea behind introducing this system is to transform the compliance and statutory filing architecture for several businesses. 

According to a report in Livemint.com, the new system for company registrations will replace the filing of over 50 forms in PDF with web-based ones. Once introduced, the new forms will reportedly cover every reporting requirement of the companies. These include registered office details, names of directors, various disclosures and so on. 

The report also adds that the once the new system of company registration gets introduced, the current forms (old ones) are likely to remain suspended for almost a fortnight. While the new system is expected to deploy new IT tools for better user experience, the suspension of the current system is expected to aid the transition process. 

As per the publication’s report, the Centre is expected to come out with a public notice about this transition and when it does, during that time, the existing forms will remain suspended. It adds, “Relief is likely to be offered to businesses in terms of extra time for fulfilling their compliance obligations so that the absence of forms for a brief period during the transition does not affect them in any manner.”

The new system for company registration is also a part of the version three of the MCA21 portal, one that the Ministry of Corporate Affairs has started implementing, as per the report. The ministry is also doing this to reduce reliance on manual work and make it more automated. However, once the new system is introduced, it is likely for other corporate filing requirements to also undergo change.