Dear all
The professionals are facing lot of problem with MCA . Kindly go through newspaper article in this regards
Will concerned authorities look into the same and arrange to resolve the issue.
regards
New Companies Act: Technical issues force many firms to seek for limited liability partnership structures
MUMBAI: Kishor Ved, a practicing company secretary in Mumbai, has been trying to register a company for his client on the corporate affairs ministry's website since May 13. "There are some technical issues," says Ved.
"Even after uploading all the forms online, we are not receiving an online acknowledgement. Even after registering an online complaint with the MCA helpdesk, the website says the forms are not resubmitted."
The new Companies Act, which came in to effect on April 1, demands much more information as well as disclosures, making the entire process tedious and time-consuming. This, said company secretaries, has slowed registrations, promoting other structures like limited liability partnerships (LLPs). In comparison, companies can be incorporated in a day in several developed countries. The technical issues are forcing many companies to seek for LLP
structures, which are easier and faster. "Though the LLP structures are managed by MCA on a state-to-state basis, it is easier and faster," says Ved, adding that enquiries to such structures have increased in the past fortnight. Though the process may be faster compared to the old days when entrepreneurs took months to float a company (Biocon and Pantaloon RetailBSE -6.42 % were incorporated in three months), the new Companies Act has further added to the woes.
India has been
has been ranked lower at 179 among 189 countries in terms of ease of starting a business in 2014, way behind several emerging markets like Mexico, Brazil, Russia and China, World Bank data showed. "When other countries are promoting incorporation within a day, India is moving to an era where incorporation will be considered a hectic process and likely to be opted less in times to come," said Kaushal Dalal, company secretary at Kaushal Dalal & Associates.
"The old Companies Act of 1956 had simplified the procedure but the new Act has totally gone in contrast, making the incorporation process a very complicated task."
While the old Act just required details of subscribers and directors, the new Act also wants an affidavit from each of the subscribers to the memorandum and from persons named as first directors, the director's interest in other companies, specimen signature and latest photograph verified by a notary, among others.
"By putting additional weightage on disclosures, it has made the incorporation process a cumbersome activity," said the company secretary of a diversified conglomerate.
Industry analysts said the amount of time consumed in floating companies is a huge deterrence for entrepreneurial growth. It takes 12 procedures and an average 27 days to start a new company in India, says the World Bank's 'Ease of Doing Business' report.
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