Lok Sabha Question No. 2595 (UNSTARRED), answered on 2026-03-09
Subject: Digital Modernisation of Corporate Compliance Framework
Ministry: CORPORATE AFFAIRS
Asked by: Shri Vishweshwar Hegde Kageri, Shri Damodar Agrawal, Shri Rajkumar Chahar, Shri Ravindra Shukla Alias Ravi Kishan, Smt. Kamaljeet Sehrawat, Dr. Bhola Singh, Shri Vijay Kumar Dubey

## 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]

- (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, eEnforcement, 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 Years   | Total no. of filings*   | Companies incorporated   | LLPs 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              |

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