Lok Sabha Question No. 186 (STARRED), answered on 2024-12-09
Subject: Streamlining of Compliance Process for Companies
Ministry: CORPORATE AFFAIRS
Asked by: Smt. Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 186 ANSWERED ON MONDAY, DECEMBER 9, 2024 AGRAHAYANA 18, 1946 (SAKA)

## STREAMLINING OF COMPLIANCE PROCESS FOR COMPANIES

## QUESTION

*186.   SMT. SANGEETA KUMARI SINGH DEO:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the steps taken by the Government to streamline corporate compliance requirements in Odisha;
- (b) the impact of these steps on the ease of doing business and reduction in regulatory burden for companies in Odisha; and
- (c) the status of initiatives undertaken to digitize compliance processes for companies operating in Odisha and the progress achieved so far?

## ANSWER

THE MINISTER OF FINANCE & CORPORATE AFFAIRS

[SMT. NIRMALA SITARAMAN]

(a) to (c): - A statement is laid on the Table of the House

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. *186 FOR ANSWER ON 09.12.2024

- (a) to  (c):-  The  Government  of  India  has  undertaken  several  steps  to streamline corporate compliance requirements, promoting ease of doing  business,  reducing  the  regulatory  burden  and  to  digitize compliance  process  for  companies  which  includes  companies  in Odisha. Key initiatives include:
- (i) Implementation  of the MCA21  portal  for filing  eforms and accessing  approvals,  making  compliance  efficient  and  userfriendly.
- (ii) SPICe+ (Simplified Proforma for Incorporating Companies Electronically)  was  introduced  in  2016  for  seamless  company incorporation and registration processes. Linking MCA filings with other  platforms  to  give  services  like  Goods  and  Service  Tax Identification Number (GSTIN), Employees' Provident Fund Organisation (EPFO) registration, and Employees' State Insurance Corporation (ESIC) registration through SPICe+ to reduce repetitive data submissions and enhance inter-agency coordination.
- (iii) De-criminalization  of  technical  &  procedural  violations  under Companies  Act,  2013  has  been  carried  out  in  phased  manner. Through the Companies (Amendment) Act, 2019 and 2020, many compoundable  offences  under  the  Companies  Act,  2013  were shifted to an in-house Adjudication Mechanism (IAM).
- (iv) Allowing companies to conduct Annual General Meetings (AGMs) and Extraordinary General Meetings (EGMs) through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), especially post-pandemic.
- (v) Reduced  Compliance  for  Startups,  Small  companies  and  One Person Companies such as:
- •
- Abridged annual return prescribed for small companies.
- Zero fee is charged for incorporation of all companies with authorized capital up to Rs. 15 lakh or with up to 20 members for companies limited by guarantee.
- Small  companies  are  entitled  for  lesser  penalties  as  per section 446B of Companies Act, 2013.
- (vi) Setting up of the centralized centres for faster processing of forms and approval as follows:
- Central Registration Centre (CRC): Started in 2016, focuses on  the  incorporation  of  companies  and  registration  of Limited Liability Partnerships (LLPs). It ensures faster and more efficient approval of name reservations and incorporation forms.
- Central Processing Centre (CPC): Started in 2024, handles the processing of 12 Non STP e-forms filed by companies under  the  Companies  Act,  2013.  It  enables  centralized processing  of  forms,  ensuring  compliance  with  statutory requirements.
- Centre for Processing Accelerated Corporate Exit (C-PACE): Started in 2023, focuses on the disposal of applications for striking off of companies.

The above measures have reduced procedural delays, improved transparency, and lowered compliance costs, encouraging entrepreneurship  and  investment.  Number  of  Companies  incorporated  in Odisha in the last 6 years is given below:

|   S.No | Financial Year                     | Total number of Companies Registered in Odisha   |
|--------|------------------------------------|--------------------------------------------------|
|      1 | 2019-20                            | 27,233                                           |
|      2 | 2020-21                            | 30,394                                           |
|      3 | 2021-22                            | 33,634                                           |
|      4 | 2022-23                            | 36,458                                           |
|      5 | 2023-24                            | 39,687                                           |
|      6 | 2024-25 as of 30 th November, 2024 | 41,693                                           |

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