Finance Minister Nirmala Sitharaman announced in the Union Budget 2021 that the government would soon introduce a newer version of the MCA21 – to be called 'Version 3.0' (MCA21 V3) – in order to promote its ease of doing business initiative. Further, in April 2021 there were news reports that the government is also planning to launch a mobile app for corporate filings in consultation with the Ministry of Corporate Affairs (MCA) in order to reduce the compliance burden on companies in India.
MCA21 V3 is being rolled out in two phases, with the first phase having been rolled out on 24 May 2021. MCA21 V3 is the government's first mission mode e-governance project and will be a technology driven, forward-looking project which is focused on:
- strengthening enforcement;
- promoting ease of doing business;
- enhancing the user experience; and
- facilitating seamless integration and data exchange among regulators.
The government has planned to structure MCA21 V3 to align it with global best practices and equip it with emerging technologies (eg, AI and machine learning), so as to completely revamp the compliance mechanism for corporates and transform the corporate regulatory environment in India.
MCA21 V3 will be able to alert companies of any errors in filings, profile companies and assess companies' risk of default. The key features of MCA21V3 phase one are as follows:
The MCA website has been completely revamped. The homepage now has an enhanced user interface and navigation has been simplified, with tabs providing access to various MCA services. The top navigation bar now enables users to change the theme, font size and language of the website. Further, users can choose to view the website in light or dark mode and in English or Hindi.
MCA service cards
MCA service cards provide access to various services relating to the full lifecycle of a company or limited liability partnership (LLP). Among other things, users can simply register a company or LLP, download various company forms and close an LLP using service cards.
Important messages banner
A horizontal scrolling banner has been enabled to display urgent notifications, news, messages and updates of the MCA.
Frequently used services
The frequently used services section is the newest feature; it contains information cards enabling users to access the services most frequently used by them.
Notifications and updates corner
The notifications and updates corner has been reorganised to provide access to specific notifications and updates, such as 'What's new' and 'Latest news', as well as videos, notices and circulars, recent reports and press releases. Further, the content of each tab under the notification and updates section can be filtered using a sectional search or by date of the updates.
An e-books facility has been enabled, wherein all of the acts administered by the MCA are listed. Further, functionalities such as filtering, sorting and timelines have been introduced, which will help users to access updated information on applicable acts, rules and regulations.
A new platform has been introduced for stakeholders to provide comments, suggestions and feedback on any proposed legislation and amendments released by the MCA.
Phase one of the MCA21 V3 has provided various stakeholders with an enhanced user interface, whose features align with modern technology across the world. However, the second phase will allegedly bring a wide range of functionalities providing for complete compliance management. Phase two is expected to be rolled out in October 2021, and the mobile app may also be released by that time.
For further information on this topic please contact Neetika Ahuja or Tanuja Kaushik at Clasis Law by telephone (+91 11 4213 0000) or email ([email protected] or [email protected]). The Clasis Law website can be accessed at www.clasislaw.com.