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Central Processing Centre at Indian Institute of Corporate Affairs, Manesar.

MCA to Establish CPC for processing of E-Forms

The Ministry of Corporate Affairs (MCA) has notified the establishment of the Central
Processing Centre (CPC) for processing of E-Forms via issuing Notification.

The Notification Read as follows:

In exercise of the powers conferred by sub-sections (1) and (2) of section 396 of the Companies Act,
2013 (18 of 2013), the Central Government hereby establishes a Central Processing Centre at Indian
Institute of Corporate Affairs, Plot No. 6,7,8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin
Code- 122050 having territorial jurisdiction all over India, for the purpose of the provisions of the said
section.

The Central Processing Centre shall process and dispose of e-forms filed along with the fee as provided
in the Companies (Registration of Offices and Fees) Rules, 2014.

The jurisdictional Registrar, other than the Registrar of the Central Processing Centre, whose
jurisdiction includes the company’s registered office, shall retain jurisdiction over the companies
whose e-forms are processed by the Registrar of

the Central Processing Centre under all other provisions of the Companies Act, 2013 and the rules
enacted thereunder.

This notification shall come into force from the 6th February 2024.
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New Delhi: India’s upcoming central data processing centre will ensure quick and
objective approval of corporate filings by taking over the task from scattered regional
offices, a person aware of the development said, freeing up the latter for more
investigation and enforcement work.

The centralized data processing unit will come up at the Indian Institute of Corporate
Affairs (IICA) premises in Haryana’s Manesar, the person cited above said on
condition of anonymity. The IICA is an institution attached to the ministry of
corporate affairs that trains personnel, conducts research and keeps records of people
who have qualified to become directors on company boards.

Union finance and corporate affairs minister had announced the data processing
centre in the Union budget 2023-24, but details on its implementation have not been
made public so far.

This entails a change in the process flow of the existing approval system, where files go
to RoCs across the country. Under a separate exercise, several corporate disclosures
have been exempted from the need for RoC approvals in favour of an online
acknowledgement to be considered compliant under what is called straight- through
processing. All other forms will go to the centralized facility for approvals," the person
cited above said.

Currently, companies make such filings with the local Registrar of Companies (RoCs)
office. India has 25 RoCs across the country overseeing registrations of companies and
limited liability partnerships (LLPs) and their compliance. Once the faceless
processing centre is set up, all information disclosures and statutory forms that require
approvals will go to this facility instead. With this, most of the work of RoCs will be
automated, freeing their time and resources to focus on investigation and enforcement.
The centralization of the approval process is also expected to bring more objectivity to
regulatory decisions.

Experts said this is a welcome move but required safeguards for a smooth rollout.

“The thought process of having a centralized processing centre for company law-
related filings is excellent. In order to be able to achieve the objectives of this measure,
it is also important to put in place guidelines, train officers and also have regional help
desks so that professionals can understand the reasons behind decisions of the
centralized processing centre and also explain their position," said
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Experts said this is a welcome move but required safeguards for a smooth rollout.

“The thought process of having a centralized processing centre for company law- related filings is
excellent. In order to be able to achieve the objectives of this measure, it is also important to put in
place guidelines, train officers and also have regional help desks so that professionals can understand
the reasons behind decisions of the centralized processing centre and also explain their position," said
D. Nagendra Rao, former president of the Institute of Company Secretaries of India (ICSI).

Rao also said that the government’s intention of freeing up RoCs’ time and resources for
enforcement through automation of form processing is a great idea, as it will also raise the
bar for professionals and help improve the governance in companies.
The Companies Act, 2013 is implemented by the corporate affairs ministry and the
IEPF Authority also comes under the ministry.

"A Central Processing Centre will be set up for faster response to companies through centralised
handling of various forms filed with field offices under the Companies Act," Sitharaman said.

According to the minister, for investors to reclaim unclaimed shares and unpaid dividends from the
IEPF Authority with ease, an integrated IT portal will be established.

Over the years, the government has been taking various measures to improve the ease of doing business
in the country.

"For enhancing ease of doing business, more than 39,000 compliances have been reduced
and more than 3,400 legal provisions have been decriminalised. For furthering the trust-
based governance, we have introduced the Jan Vishwas Bill to amend 42 Central Acts. This
Budget proposes a series of measures to unleash the potential of our economy," Sitharaman
said.

by Sr. Executive Legal (ABNP & Co. LLP)