Karnataka firms ready with e-filing system

The Union ministry of company affairs' (MCA) exercise to bring in transparency and efficient corporate governance among Indian companies through its project 'MCA-21' is nearing completion in Karnataka.

MCA-21 seeks to improve speed and certainty in delivery of MCA services. Through this initiative the ministry intends to achieve electronic filing for all the services rendered by the 'registrar of companies' (RoC) like incorporation of a company, annual return filing, registration charges and other event-based filing.

According to Gopalakrishna Hegde, chairman, Institute of Company Secretaries of India (ICSI), Bangalore, in Karnataka a majority of the companies are ready in e-filing mode.

"With June 30 being the last date for becoming e-filing compliant, Karnataka leads other states with many IT companies completing the MCA-21 programme. With this, doing business in the state becomes more transparent and easy," he added.

For implementing the MCA-21 project, the ministry has roped in Tata Consultancy Services (TCS) and has opened physical front offices (PFO) in various cities wherever there are RoC offices and the e-forms are filed through these PFOs unless the companies or the professionals are able to file directly.

According to M R Gopinath, a practising company secretary, MCA-21 primarily requires the use of digital signatures by the directors and officers of the company and also by professionals like chartered accountants, company secretaries and cost accountants.

It also requires obtaining identification numbers for all directors (DIN) and professionals.

While DIN numbers are allotted by the MCA through its DIN cell, digital signatures are certified by accredited agents for one to two years.

Now with the filing issues addressed, MCA is likely to take up the next crucial issue of practice of limited liability partnerships in the country, Hegde said.