Parliament Question: Corporate compliance simplification and MCA21 portal upgradation

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS RAJYA SABHA STARRED QUESTION NO. 265 ANSWERED ON TUESDAY, MARCH 17, 2026 Corporate compliance simplification and MCA21 portal upgradation QUESTION *265. SHRI TEJVEER SINGH: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) the key changes made under the recent upgrades of the MCA21 system and digital filing improvements to simplify company registration and statutory compliance processes. (b) the impact on company registration time, compliance costs and pending filing cases, after the commencement of upgraded portal; and (c) the current status of rationalisation of penal provisions and decriminalisation reforms for small and startup companies? ANSWER MINISTER OF FINANCE AND CORPORATE AFFAIRS [SMT. NIRMALA SITHARAMAN] (a) to (c): A Statement is laid on the Table of the House. *******STATEMENT REFERRED TO IN ANSWER TO PART (a) (b) and (c) OF RAJYA SABHA STARRED QUESTION NO. *265 FOR 17TH MARCH 2026 REGARDING ‘CORPORATE COMPLIANCE SIMPLIFICATION AND MCA21 PORTAL UPGRADATION’.` (a): MCA has undertaken several measures to simplify key processes and enhance transparency on the MCA21 portal, including company incorporation, statutory filings, and compliance processes. For company incorporation, the SPICE+ B form is integrated with several other regulators like income tax department, GSTN, EPFO and ESIC for generation of PAN, TAN, GST, EPFO and ESIC registration numbers and other services at the time of incorporation. In MCA21 V3, Web based filings have been introduced with real time validations and pre-filled master data to reduce manual errors, re-submissions and compliance timelines. Further, LLP Module, Company module, e-Enforcement, e-Adjudication, e-Consultation, e-Book, Learning Management System have already been implemented as part of V3. (b): The average turnaround time in last five years for Company incorporation and name reservation is between 1 to 2 days. Of the total number of e-forms to be filed under the Companies Act/LLP Act, about 57 % of e-forms are processed through the Straight Through Processing (STP) and conditional STP mode. The total number of filings including the number of annual statutory filings for last four years is at Annexure. (c): The process of de-criminalization of technical & procedural violations under Companies Act, 2013 has been carried out in phased manner. In the first phase, through the Companies (Amendment) Act, 2019, 16 compoundable offences under the Companies Act, 2013 were shifted to an In-house Adjudication Mechanism. In the second phase, through the Companies (Amendment) Act, 2020, 35 more compoundable offences under the Companies Act, 2013 were de-criminalized. In addition, through this amendment, in case of 11 compoundable offences, provisions for imprisonment were removed and only fines were retained. This initiative has reduced litigation burden and compliance costs of all companies including small and start-up companies. Further, under section 446B of the Companies Act 2013 lesser penalties are applicable for small companies and One Person Companies in cases of default in compliance of the provisions of the Companies Act 2013 for which penalty is payable. ******Annexure Attachment referred to in answer to Part (b) of Rajya Sabha Starred Question No. *265 for 17th March, 2026 Regarding ‘Corporate Compliance Simplification and MCA21 Portal Upgradation’. The total number of filings including the number of annual statutory filing for last four years. Financial year Total number of forms filed FY 21-22 73,16,911 FY 22-23 75,32,709 FY 23-24 80,77,210 FY 24-25 87,79,125