BackAadhaar to become must for corporate filings soon
This requirement will apply to those registered as ‘business users’ on the MCA21 website and are authorized to file documents and forms on behalf of companies, a person familiar with the plan said, requesting anonymity.
PremiumThe government plans to mandate Aadhaar biometric verification for designated directors, and professionals such as company secretaries involved in filing statutory documents to bolster the security of statutory filings and ensure accountability.
This requirement will apply to those registered as ‘business users’ on the MCA21 website and are authorized to file documents and forms on behalf of companies, a person familiar with the plan said, requesting anonymity. The change is likely to be implemented following the completion of the website’s ongoing upgrade later this year.
The current upgrade of the ministry’s statutory filing system involves significantly enhancing authentication requirements for filers. This is achieved through two methods: first, by re-engineering the IT system from scratch while retaining the old filing system, and second, by gradually introducing new web-based statutory filing forms that enable real-time verification of information already available with the ministry when an authorized filer—a business user—inputs data on a new form before submission.
Know your customer (KYC) verification is mandatory for business users based on a unique digital signature, Permanent Account Number (PAN) issued by the income tax department, or Director Identification Numbers (DINs) issued by the ministry or identification numbers from professional institutes such as the Institute of Chartered Accountants of India, as well as phone numbers and emails.
This heightened security requirement now applies to most of the over 60 web-based forms rolled out in the third version of the filing portal. In addition, the ministry intends to introduce approximately 50 additional forms in the coming months, completing the transition to the new corporate statutory filing system. Upon achieving a seamless transition, the ministry plans to add Aadhaar-based biometric verification to the list of identification requirements, said the person cited above. This addition to the existing KYC requirements is expected to bolster authorities’ efforts to combat financial irregularities and money laundering associated with shell companies.
When the ministry introduced 56 new web-based forms for various company filings on 23 January, only about 30,000 company directors registered as business users with unique identities. Now, this figure, which also includes key managerial personnel of companies, has crossed 600,000, according to a second person who also spoke on the condition of anonymity. Since only those with unique identities in the system can file forms, it becomes easier for authorities to ensure accountability in corporate disclosures.
However, there is no requirement to become a business user of the portal when reserving names for a new company, which occurs prior to the entity’s incorporation. The number of form filings has also increased significantly, suggesting that the new filing system has stabilized.
The MCA21 system upgrade is a mission-mode e-governance project of the government. The ministry of corporate affairs did not respond to an email sent on Thursday seeking comments for the story by the time of publication.
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