All about E-Governance

Theoretical studies state that E-Governance is the procedure of change of the correlation of government with its ingredients, the citizens, the businesses, and its own organs, through the use of tools of information and communication technology. India is today globally acknowledged as an IT Superpower. Indian software companies have carved a niche for themselves in the global markets. Being an IT superpower is one thing. But the real challenge is how to leverage the strengths and skills of India's globally competitive and recognised software companies to improve the lives of people through e-Governance MCA 21 is a step in this direction.

• Corporates agonise over having to waste a lot of unproductive time on filing information with the Registrar of Companies.
• There is a plethora of forms to be filed with ROC in hard copy format Very often, these forms involve duplication of effort and time.
• Under the manual system, ROC can not provide scrutiny of forms at the point of acceptance itself.
• Companies exist basically to do business and compliance with formalities should not consume a disproportionate portion of their time. Only then, companies can be productive The ROC offices are not open 24 X 7 365 days in a year and cannot be kept open on a 24 X 7 basis to provide the facility of filing forms at one's own convenience. Banks also cannot be kept open 24 X 7 to accept filing fees.

THE SOLUTION

A solution to all the above-mentioned difficulties cannot be found within the framework of the manual filing system.So, the need for e-Governance. Realising the need for e-Governance, the Ministry of Corporate Affairs has embarked on an ambitious e-Governance project. The MCA has launched a new portal MCA 21 on 20th February, 2006. The MCA deserves to be complimented for this bold initiative. in a couple of months from the launch, physical filing of documents under the Companies Act, 1956 has been discontinued and e-Filing of documents through the new portal is made compulsory.

What are the Elements of E-Governance?

Ans - Basic elements of e-governance are:

• Government
• Citizens
• Investors/Businesses

E-GOVERNANCE MEANING

It refers to the performance of governance via the electronic medium in order to provide an efficient, speedy & transparent process & performing government administration activities. The system aims at moving from paper based to nearly paperless environment.

ADVANTAGES OF E-FILING

Electronic filing is becoming increasingly popular because of the wide array of benefits

1. Convenient and flexible
2. Saves time and money
3. Increased accuracy
4. Less room for manipulation of records and window dressing
5. Increased authenticity and accountability

HIGHLIGHTS OF THE SYSTEM

• The filing of forms with ROC can be done from the comforts of one's home t office through the internet. There is no need to visit the ROCs offices for filing various documents.
• The payment of filing fees can also be made over the internet through credit card/ banking without queuing up at the banks.
• The filing will be valid only when filing fee is paid.
• Pre-scrutiny of filled-up forms is done in the portals before final submission.
• Many of these eForms require certification by CA/CWA/CS (in whole-time practice) Certification must be done by signing digitally.
• DIN (Directors Identification Number) is compulsory for all directors.
• Every signatory of eForm must obtain DSC(Digital Signature Certificate).

Which domain does MCA21 e-Governance project focus upon?

Ans - MCA21 system is the first Mission Mode e-Governance project of Government of India. MCA21 V3 Project is a technology-driven forward-looking project, envisioned to strengthen enforcement, promote Ease of Doing Business, enhance user experience, facilitate seamless integration and data exchange among regulators.

SERVICES AVAILABLE UNDER MCA 21

• Registration and incorporation of new companies
• Filing of Annual Returns and Balance Sheets
• Filing of forms for change of names/address/ Director’s details
• Registration and verification of charges
• Inspection of documents
• Applications for various statutory services from MCA
• Investor grievance redressal

ORGANIZATION OF ROC OFFICE UNDER MCA

The RoC office working from its present address will virtually become the Back Office of the Ministry. Since number of companies/ entities may find it difficult to switch over to eFiling at the initial stage, Facilitation Centres known as Physical Front Offices (PFOS) have been set-up throughout the country to provide requisite comfort for eliling to such companies.

Front Office (FO) - It means interaction between system & user in order to file a form or other documents with the authority concerned .

Further -

a) Virtual front office -

• Online filing at MCA portal through the use of one's own devices & information.
• Virtual Front Office refers to a situation where a user has equipped with all the necessary resources. required for e filing.
• Under this Concept e-filing can be done for the Convenience of user & there is no time Boundation."
• There is no intermediary below the? user & MCA as there is a direct link.

b) Physical front office -

• It refers to a process of e-filing with the help of physical Centers established by CG for all those user who is not equipped with the resources required for e-filing
• But filing under this Concept is time bound that is only done during working hours.
• E-filing through this process can only be done by gaining or Visting these physical front officers.

CORPORATE IDENTITY NUMBER

A Corporate Identification Number (CIN) is a unique identification number that is assigned by the Registrar of Companies (ROC) to the companies registered in India. The ROC gives the CIN to the companies while issuing their Registration Certificate.Corporate Identification Number (CIN) is a 21 digits alpha-numeric code -

• 1st Digit - Listing Status
• Next 5-digits - Economic Activity (industry)
• Next 2 digits - State
• Next 4 digits - Year of Incorporation.
• Next 3 digits - Ownership
• Last 6 digits -Sequential number assigned by ROC (Registration Number)

CIN is provided to all companies registered in India, which include:

• Private Limited Companies (PLCs)
• One-Person Companies (OPCs)
• Companies owned by the Government of India
• State Government Companies
• Not-for-Profit Section 8 Company
• Nidhi Companies, etc.

However, CIN is not given to the Limited Liability Partnerships (LLP) registered in India. For the LLPs, the ROC gives the LLPIN (Limited Liability Partnership Identification Number) that acts as a unique 7-digit identification number of the LLP.

DIRECTOR IDENTIFICATION NUMBER

The concept of a Director Identification Number (DIN) has been introduced for the first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act, 2006. DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company, upon making an application in form DIR-3 pursuant to section 153 & 154 of the Companies Act, 2013.

• It is an 8-digit unique identification number that has lifetime validity
• Any person intending to become a director in an existing company shall have to make an application in eForm DIR-3 for allotment of DIN and should follow the prescribed procedure.
• As per Section 154 of the Companies Act, 2013, Central Government shall allot a DIN to the applicant within 1 month from the date of receipt of application.
• Section 155 of the Companies Act, 2013 prohibits a person from having more than one Director Identification Number (DIN).

Does DIN expire?

Ans - If the application for a regular DIN is not made within a period of 60 days, the provisional DIN becomes invalid. However, once a regular DIN is allotted, it remains valid for the life-time of an individual.

DIGITAL SIGNATURE CERTIFICATE

Digital certificates help to validate the holder of a certificate. Digital certificates contain the public key of the sender and are digitally signed by a Certificate authority. A
digital signature is the electronic signature duly issued by a certifying authority that shows the authority of the person signing the same. It is an electronic equivalent of a written signature. Every user who is required to sign an e-form for submission with.

Benefits of DSC

• Reduced cost and time
• Data integrity
• The authenticity of documents
• Quick Processing

What is the need for DSC?

Ans - DSC help in authenticating the identity and the personal information details of the certificate holder while conducting online transactions.

With a growing number of businesses and transactions conducted online, the use of DSC becomes invariably important. The DSC’s are now asked by the various government agencies to cross-check and verify the authenticity of the individual conducting online transactions.

FOREIGN COMPANY REGISTRATION NUMBER

Every Foreign Company has been allotted a Foreign Company Registration Number (FCRN).It is a Six-digit number. Foreign Company Registration Number (FCRN) is generated consequently upon approval of eForm FC-1.

Corporate Identity Number (CIN), works as a unique identifier of an Indian company. Foreign Company Registration Number (FCRN) is a unique identifier in the case of a Foreign Company.

IMPORTANT TERMS RELATING TO E-FILING

Pre-fill: It is a functionality in an e-Form that is used for filling automatically, the requisite data from the system without repeatedly entering the same.

For example, by entering the CIN of the company, the name and registered office address of the company shall automatically be pre-filled by the system without any fresh entry.

Attachment: An attachment refers to a document that is sent as an enclosure with an e-Form by means of an attached file. The objective of the attachment is to provide details relevant to the e Form for processing. While some attachments are optional some are mandatory In nature.

Check form: By clicking "check form", the user will be in a position to find out whether the mandatory fields in an e-form are duly field-in. For example, if the user enters alphabets in "Date of appointment of Director" field, he/she will be asked to correct the entered information.

If the size of e-Form including attachment is of bigger size then the attachment may be filed through an addendum. If the size of attachment is even more bigger in size then the details may be submitted in a floppy or compact disc at the ROC office.

Modify: Once the user has done 'Check Form', the form gets locked and it cannot be edited . If the user wishes to make any alteration, the form can be overwritten by clicking "Modify" button. If the user wants to modify the form after pre-scrutiny failure, that user can get the e-form and whichever fields have to be changed only those may be modified by using the 'Modify' button.

Pre scrutiny: Pre-scrutiny is a functionality that is used for checking whether certain core aspects are properly filled the-e-Form. The user has to make the necessary attachments, in PDF before submitting the e-Form for pre-scrutiny.

Service Request Number (SRN): Each transaction under e-filing is uniquely identified by a Service Number (SRN). On filing of an e-form, the system will generate and provide a Service Request Number (SRN). A user can check the status of the document/ transaction, by entering the SRN.

How to Affix Digital Signature?

The process of affixing digital signature is as follows

(a) User clicks the provision provided (signature affixing icon) on the eForm, against his role, to digitally sign it.
(b) Utility to sign the e-Form opens, where user selects the intended certificate to digitally sign the e-form.
(c) After selecting the certificate, utility digitally signs the e-Form with the certificate, and the certificate information gets embedded in the e-form.

SIGNIFICANCE OF MCA21

• It will leverage the use of latest technologies to further streamline Corporate Compliance and stakeholders experience.
• It will help in improving Ease of Doing Business in India.
• It will enhance the trust and confidence in the Corporate regulatory and governance system.
• It will strengthen enforcement, enhance user experience, facilitate seamless integration and data exchange among Regulators.
• Will enable Easy access to the updated legislations along with a tracking mechanism.

E-filing is popular because of the wide array of benefits it offers. An e-form is a re-engineered conventional form, represents a document in electronic format. The project marked a new era of responsive, customer-oriented, transparent and efficient governance. All filings done by the companies/LLPs under MCA21 e-Governance programme are required to be filed using Digital Signatures by the person authorized to sign the documents.