MCA 21 An Overview 4 th December 2008

MCA 21 An Overview 4 th December, 2008 Electronic Administration Forum, Morocco 1

Project coveraage o MCA 21 is an e-governance solution covering all aspects of incorporation and regulation of companies in India o It offers its services through a secure portal to corporate entities, professionals and the public. o Covers all the companies that exist in India(over 900 thousand) o Provides online access to public to all the documents filed by the companies Electronic Administration Forum, Morocco 2

Vision Support establishment of a business environment combining service delivery for business facilitation with cost effective, efficient and transparent regulatory compliance Electronic Administration Forum, Morocco 3

Stakeholder Values Business Doing business simplified Public Online access to corporate data FIs Easy registration & charge verification Government Efficient service delivery & Effective regulation Employees Modern, productive work environment Electronic Administration Forum, Morocco 4

Legacy Paper System o MCA most authentic repository of all corporate data o Total of 600, 000 companies o Each company filed an average of 50 pages/year o Average paper retention is 7 -8 years o Over 10 Cr sheets of paper in archives o Charge Registration 1 lakh /pa o Physical appearance of ROC only way to interact – 3. 5 lakh representatives visit Electronic Administration Forum, Morocco 5

Archaic Processes o Limited number of MCA offices o Long, unmanageable queues o Slow manual collection & verification process o Payment options limited o Paper sorting, storing/retrieval are very cumbersome, timeconsuming and error prone o Information availability to stakeholder is time consuming and error prone o Inadequate compliance monitoring Electronic Administration Forum, Morocco 6

Transformation Electronic Administration Forum, Morocco 7

Radical Improvements o Secure, inter-operable electronic services through the MCA Portal o Digital Signature for electronic authentication in tune with IT Act 2000 o Physical Front Offices for customer facilitation o Multiple payment options including electronic and traditional Bank payments o Digitization of 5 Cr pages of legacy documents o Electronic workflow driven paperless MCA back office o Highly scalable IT solution Electronic Administration Forum, Morocco 8

Big-Bang Approach Modernization, not mere Computerization Re-engineering Holistic, service-focused approach Implemented on BOOT Basis with PPP Potential Managed computing infrastructure coupled with business-continuity plans o Service level agreements (SLA) with project operator o Pilot run to identify problems upfront o Institutional mechanism for project and SLA monitoring o o o Electronic Administration Forum, Morocco 9

Project Structure o o o o Concept Phase Proof-of-concept (for technical viability) Approval by Council of Ministers Bid Process & Partner Selection Solution Construction Pilot Phase: Coimbatore & Delhi National Rollout 6 year operation contract Electronic Administration Forum, Morocco 10

Project Scope o o o o Nationwide coverage All companies (Public, Private, Not-for-Profit) All aspects of Company Governance Nearly 100 Services Potential for ‘value added services’ Comprehensive MIS Compliance Management & Regulation All of the above in the electronic mode with 24 x 7 access Electronic Administration Forum, Morocco 11

Service Portfolio o Name Approvals and Incorporation of new companies o Filing of annual statutory returns o Corporate Governance related filings o Charge matters o Grant of all approvals under Companies Act o Registry access to public records of companies o Provision of certified copies of public records o Providing a forum for redressal of investors’ grievances Electronic Administration Forum, Morocco 12

Visible Achievements o o o o o Procedural uniformity across all offices Speed and certainty of service delivery, with ease of access Transparency – status of processing of filings and approvals Problem of malpractices inherent with a paper-based system addressed (such as ante-date filings, incomplete filings, replacing documents, etc. ) Establishment of a dependable data for effective compliance management Platform for further processes refinement (e. g. central registry) A channel to both understand be receptive to the stakeholders’ problems and emerging needs Viability of Public-Private Partnership model Empowerment of the citizen/investor with authentic data about companies through the Internet Electronic Administration Forum, Morocco 13

Impact on Service Delivery Efficiency Nature of Service Name Approval: Company Incorporation: Change of Name: Charge Regn. / Modification: Certified Copy: Prior to MCA 21 7 days 15 days 10 -15 days 10 days After MCA 21 1 -2 days 1 -3 days 2 days Registration of Other Documents Annual Return Balance-sheet Change in Directors Change in Regd. Office Address Increase in Auth. Capital Inspection of Public Documents 60 days 60 days Instantaneous -do 1 -3 days On-line Focus on delivery of all business critical services in 48 – 72 hours Electronic Administration Forum, Morocco

Operational Statistics o o o o o Average portal hits: Peak Portal hits: Avearge Annual filings : New Co. registered online: Total DIN issued till date: Company docs viewed online: E-filing rate (portal & CFC): Max filings on any day: Bank remittances: 3 mn/day 6. 5 mn (single day) 4 mn (approx) 200, 000 800, 000 600, 000 93% 42, 000 97% in T+3 days Electronic Administration Forum, Morocco 15

Challenges - Internal o o o Acceptance of change – mindset Involvement in Re-engineering Exercise Constant communication Handholding during & post implementation Employee Expectations – incentives Managing productivity & operational issues Electronic Administration Forum, Morocco 16

Challenges - External o o o o Clear identification of all stakeholders’ needs Constant involvement of stakeholders Close working with Professionals (key group) Media & Communication plan Extensive presentations and seminars nationwide Sensitiveness to user responses Addressing digital divide issues (RFO, CFC) Help Desk Electronic Administration Forum, Morocco 17

Innovation o o o o Service Delivery Gateway Transfer of data from e. Form to Database Automated form fill & pre-scrutiny Role Check Automated Approvals (STP) Multimodal methods of payment Database Linkages n DIN-CIN n PAN, Trademarks, etc. Electronic Administration Forum, Morocco 18

Institutional Mechanism o o o o Concept Development : NISG Selection of Project Partner: UTITSL Project Partner: TCS Audit & Certification: STQC Operations Monitoring: PMU Management Support: MCA e. Governance Cell Future Sustenance: SPV Electronic Administration Forum, Morocco 19

Recognitions o Golden Icon’ in 11 th Eleventh National e-Governance Conference 2008 o Dataquest IT Path Breaker Award 2006 o “Skoch Challenger Award 2008” o ‘Certificate of Excellence’ at Technology Sabha, 2008 o Recognized as “a revolutionary step by the Government” in a survey conducted by Ernst & Young Electronic Administration Forum, Morocco 20

MCA 21 – Role Model in Ne. GP o ‘Design First’ Approach – RFP Document o Holistic outsourcing – PPP viability o Digitization of legacy – factory approach o RFO – Addressing Digital Divide o DSC – largest usage worldwide o Back office workflow – productivity management o Gateway – simplifying interoperability o Green project – e. Form (paper elimination) Electronic Administration Forum, Morocco 21

Thank-you Electronic Administration Forum, Morocco 22