India’s MCA Cuts Down Company Registration Time
Aug. 25 – The Ministry of Corporate Affairs has cut down measures under MCA-21 to facilitate the registration of a company within 24 to 48 hours where there is no complexity about availability of names.
The different fundamentals of this process are:
- Director Identification Number is allotted online on the basis of a verification certificate given by the practicing Chartered Accountant, Company Secretary or Cost Accountant.
- New national guidelines 2011 have been issued whereby the name can be obtained online from the MCA-21 systems if the application is certified by the practicing professionals that the proposed name is in conformity with the “Name Guidelines”
- Application and payment of fees is made online
In order to stop the registration of companies by fake promoters, the Companies Act, 1956 commands obtaining of Director Identification Number (DIN) by an entity before becoming a director of the company.
For acquiring a DIN, one has to pertain in an e-form giving their full identification such as name, father’s name, address, date of birth and permanent account number (PAN) with a copy of documentary proof. The application has to be further certified by a professional. There are integral checks in the system such as checking of given particulars with the PAN database to prevent fake promoters from obtaining the DIN.
Apart from the above criteria, after the allotment of a DIN and name online, all such approvals are further re-checked manually by the “back office” and in case any discrepancies are found later on, the process of revocation of the DIN and/or company’s name are initiated.
All incorporation e-forms are filed online but checked and approved manually by the Registrar of Companies.
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