Centre Looks to Simplify Company Filings as MCA Considers Major Compliance Overhaul

Companies in India could eventually spend less time filling repetitive forms and re-entering information already available with the government, as the Centre considers a revamp of the filing system under the Companies Act, 2013. 

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The Ministry of Corporate Affairs (MCA), through the Indian Institute of Corporate Affairs (IICA), is undertaking a filing-rationalisation exercise that could bring together overlapping forms, expand automatic processing and make greater use of information already held by government systems. 

The proposals are still under consultation. The IICA consultation document, published in April, lays out several changes being considered before final recommendations are submitted to the MCA. 

Fewer Forms Could Be the Starting Point 

One of the key proposals is to consolidate forms that ask for overlapping information or serve similar statutory purposes. 

The consultation asks stakeholders whether the overall number of forms should be reduced, whether forms seeking similar information could be merged and whether the system should move towards a modular model where information can effectively be filed once and reused elsewhere. 

The review covers a wide range of company filings, including incorporation, capital and securities, deposits and charges, governance, accounts and audit, directors, approvals, restructuring and closure. 

Not everything, however, may be suitable for consolidation. The consultation is also seeking views on filings that should remain separate because of their legal or regulatory importance. These include fraud reporting, charge filings, private-placement documents, IEPF returns, liquidation proceedings and certain auditor-related filings. 

More Routine Filings Could Be Processed Automatically 

The Centre is also considering expanding the use of Straight Through Processing (STP), allowing more eligible filings to be approved without manual scrutiny. 

The proposed expansion covers routine company filings as well as matters such as the appointment or removal of directors, changes in loans or charges, changes to share capital and shifts in a company’s registered office. 

Eligible applications to close companies with no business activity, pending cases or unpaid dues could also be considered for automatic processing. 

STP already handles a substantial share of activity on the MCA21 portal. Around 3.84 crore filings were made through MCA21 between 2021 and 2025. Of these, 3.33 crore were approved through STP, while 40.8 lakh were approved by Registrars of Companies and Regional Directors. 

Companies May Only Need to Report What Has Changed 

Another proposal could directly address repetitive data entry. 

The government is considering pre-filled and “delta-based” filings. Information already available with the registry would appear automatically, leaving companies to provide only what has changed since their previous filing. 

The information that could potentially be pre-filled includes company master data, details of directors and key managerial personnel, shareholding patterns, auditor information, charge status, previous-year financial parameters and CSR data. 

The idea forms part of a broader shift towards a more data-centric filing system that makes greater use of existing registry information. 

MCA Systems Could Connect With Other Regulators 

The proposed overhaul also looks beyond the MCA’s own database. 

API-based data sharing is being considered to allow MCA information to connect with other government and regulatory systems, potentially reducing instances where the same information has to be reported multiple times. 

Systems identified in the consultation include GSTN, CBDT, SEBI, RBI, UIDAI, EPFO, ESIC and CERSAI. 

Such connections could be used for purposes including validating GST registration and turnover, verifying PAN and income-tax information, checking foreign-investment compliance and synchronising information related to charges. 

For new company incorporation, the consultation has also examined the possibility of a single-window system integrating filings and registrations involving SPICe+, AGILE-PRO, PAN/TAN, GST, EPFO and ESIC. 

What Happens Next? 

For now, these remain proposals rather than final changes to the filing system. 

IICA will compile the final recommendations and submit them to the MCA. According to the consultation document, those recommendations will take stakeholder feedback, legal feasibility and regulatory considerations into account. 

If the proposals eventually move forward, the direction of the exercise is clear: fewer overlapping filings, more automated processing, greater reuse of existing data and compliance requirements that better reflect the type and size of the company.