Central processing centre sees better results on forms shifted from RoC

Processing of forms related to the Companies Act has shown a 10 per cent uptick in the first quarter of 2024-25 since the launch of the Central Processing Centre (CPC), compared to those processed at registrar offices in the corresponding period last year, revealed sources.

The CPC, launched in February this year, has centralised filings from registrar offices in one location. Currently, only 12 non-straight-through process forms requiring government approval are processed at the CPC. Between April and June this year, the CPC processed 23,000 forms.

The Ministry of Corporate Affairs plans to shift an additional 14 such forms from the Registrar of Companies (RoC) offices to the CPC by the end of this financial year, sources informed.

“The government has been working towards easier incorporation and exit processes for companies. This move also aims to improve the business environment,” a source said.

However, stakeholders, including company secretaries and chartered accountants, have raised concerns about delays in form processing at the CPC.

“The Ministry of Corporate Affairs’ initiative to centralise form filing at a CPC is a good initiative, but it currently faces several hiccups, mainly technological, causing anxiety in the corporate sector. Timely filing of forms such as name changes, authorized capital increases, or effectuating National Company Law Tribunal orders is crucial," said Ketan Dalal, managing director, Katalyst Advisors.

Sources counter that CPC, being a faceless entity, restricts industry stakeholders from direct interaction.

“Any issues with filings are communicated to companies. There are no delays. Since the CPC’s launch, we’ve observed faster processing times and increased form submissions,” a source clarified.

The Ministry of Corporate Affairs has also established a Central Registration Centre and Centralised Processing for Accelerated Corporate Exit (C-PACE) to expedite incorporation, closure, and regulatory compliance processes, eliminating the need for physical stakeholder interactions.

Forms processed at the CPC include alterations in capital, filing resolutions and agreements, name changes, conversions of one-person company (OPC), applications for dormant company status, active company status, buyback letter of offer, and declarations of solvency.

“There are no issues with straight-through process forms, but those requiring RoC’s approval face delays. Forms like name changes are backlogged at the CPC, possibly due to staffing shortages,” observed Amit Gupta, a senior chartered accountant.

EASING BID
 

>10%: Uptick in Q1FY25 in processing of forms related to the Companies Act

> Currently, only 12 non-straight-through process forms requiring government approval are processed at the CPC

>23,000: Forms CPC has processed between April and June this year