Parliament Question: Digital Modernisation of Corporate Compliance Framework

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 2595 ANSWERED ON Monday, March 9, 2026/ Phalguna 18, 1947 (Saka) Digital Modernisation of Corporate Compliance Framework QUESTION 2595. Shri Vijay Kumar Dubey: Dr. Bhola Singh: Shri Damodar Agrawal: Shri Vishweshwar Hegde Kageri: Smt. Kamaljeet Sehrawat: Shri Ravindra Shukla Alias Ravi Kishan: Shri Rajkumar Chahar: Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) the status of implementation of digital modernisation initiatives under the Ministry of Corporate Affairs (MCA) compliance framework, including the MCA V3 platform, centralised processing of filings and e-adjudication systems; (b) the key measures taken to simplify incorporation, statutory filings and compliance processes for companies and Limited Liability Partnership (LLP) through digital modes; (c) the extent to which these initiatives have reduced turnaround time, compliance costs, improved transparency, physical interface and facilitated ease of doing businesses; and (d) whether any assessment has been undertaken by the Government to evaluate the impact of digital compliance reforms on ease of doing business, regulatory efficiency and voluntary compliance and if so, the details thereof? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA] Page 1 of 2(a) Version-3 of MCA21 (MCA21 V3) has been launched to promote Ease of Doing Business, strengthen compliance and enhance transparency. Through MCA21 V3, functionalities like Web filings, LLP Module, Company module, e- Enforcement, e-Adjudication, e-Consultation, e-Book, Learning Management System have been implemented. All filings are now being made through V3 and the portal provides for real time validation with pre-filled master data reducing manual errors, re-submissions and compliance timelines. (b) For simplifying the incorporation, MCA has deployed an integrated ‘SPICe+’ Web Form for incorporation of companies and, FiLLip for LLPs which provides services including Name reservation, Incorporation, Director Identification Number (DIN) allotment, Mandatory issue of Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN), etc. The key measures taken regarding statutory filings and compliance processes through digital modes are as mentioned in the reply to part (a) above. (c) &(d) The average turnaround time over the last five years for company incorporation and name reservation has been between 1 to 2 days. Many forms are processed through the Straight Through Process (STP) mode, enabling approvals in a transparent manner without any physical interface, thereby facilitating ease of doing business. During 2024-25, a total of 12.68 Lakh MGT -7/7A forms were approved through STP. AOC-4 is conditional STP and is approved subject to the form meeting all statutory validations. During 2024-25, out of the total 10.73 Lakh AOC-4 forms filed by stakeholders, 98% were processed Straight Through Process. The Ministry has introduced the Multi-factor authentication to verify the identity of users accessing the system. Additionally, measures such as masking private information from public view have been implemented to maintain the confidentiality and integrity of the data. The impact of digital compliance reforms is reflected in the increased number of filings and incorporation of companies/LLPs being made over the years as per the details given below: Financial Companies LLPs Total no. of filings* Years incorporated Incorporated 2020-21 67,10,304 1,55,379 42,187 2021-22 73,16,911 1,67,086 43,054 2022-23 75,32,709 1,59,302 36,249 2023-24 80,77,210 1,85,318 58,991 2024-25 87,79,125 1,81,138 68,974 * Filings figures are as on 28.02.2026 ***** Page 2 of 2