e-Governance in companies

New Delhi, Sep 7 (UNI) The Ministry of Corporate Affairs has implemented an e-Governance Project called 'MCA21' with a view to improve the speed and certainty in delivery of MCA services in a transparent manner, the Lok Sabha was informed today.

Corporate Affairs Minister Prem Chand Gupta in a written reply said this improvement is ensured primarily through the mechanism of secure electronic filing (e-filing) and easy online payment for all the services provided by the Registrar of Companies.

It is, therefore, a significant step towards an end-to-end paperless delivery of the Government services with widespread use of Digital Signature to carry out e-filing in a secure manner in conformity with the Information Technology Act, 2000.

Starting with the launch of the first pilot on February 18, 2006 from Coimbatore and the major launch of the second pilot from Delhi by Prime Minister Manmohan Singh on March 18, 2006, the programme was rolled out at all the ROC locations in a phased manner by September 4, 2006.

He said electronic filing, using Digital Signatures, was made compulsory from September 16, 2006 with the amendment in the Companies Act, 1956. The facility for online payment through Credit Card and Internet Banking has also been provided on the portal through a secure payment gateway, to ensure prompt recognition of payment and delivery of services.

A total of 25.32 lakh documents have been filed online since the launch of this project and a significant improvement has been achieved in reduction of time in delivery of service. The stakeholders can now file their documents on-line at any time and from anywhere in a 24 X 7 X 365 time frame from the comfort of their offices or homes without physically visiting the ROC offices.

In reply to another question, the Minister said Section 11 of the Companies Act, 1956 provides that no company, association or partnership consisting of more than 10 persons (more than 20 persons in case of other than those which are doing the business of banking) shall be formed for the purpose of carrying on the business unless it is registered as a company under Companies Act, 1956 or is formed in pursuance of some other Indian Law.

However, no specific time frame for registration under Companies Act, 1956 has been provided, Mr Gupta and added that necessary legal action is initiated under section 11(4)&(5) of the Companies Act, 1956 as and when contravention of section 11(1)&(2) of the Companies Act comes to notice.

UNI