MCA21

1. MCA21 An Overview 4th December, 2008 Electronic Administration Forum, Morocco

2. Project coveraage • MCA21 is an e-governance solution covering all aspects of incorporation and regulation of companies in India • It offers its services through a secure portal to corporate entities, professionals and the public. • Covers all the companies that exist in India(over 900 thousand) • Provides online access to public to all the documents filed by the companies Electronic Administration Forum, Morocco

3. Vision Support establishment of a business environment combining service delivery for business facilitation with cost effective, efficient and transparent regulatory compliance Electronic Administration Forum, Morocco

4. Stakeholder Values Business Doing business simplified PublicOnline access to corporate data FIs Easy registration & charge verification Government Efficient service delivery & Effective regulation Employees Modern, productive work environment Electronic Administration Forum, Morocco

5. Legacy Paper System MCA most authentic repository of all corporate data Total of 600,000 companies Each company filed an average of 50 pages/year Average paper retention is 7-8 years Over 10 Cr sheets of paper in archives Charge Registration 1 lakh /pa Physical appearance of ROC only way to interact – 3.5 lakh representatives visit Electronic Administration Forum, Morocco

6. Archaic Processes Limited number of MCA offices Long, unmanageable queues Slow manual collection & verification process Payment options limited Paper sorting, storing/retrieval are very cumbersome, time-consuming and error prone Information availability to stakeholder is time consuming and error prone Inadequate compliance monitoring Electronic Administration Forum, Morocco

7. Transformation Electronic Administration Forum, Morocco

8. Radical Improvements Secure, inter-operable electronic services through the MCA Portal Digital Signature for electronic authentication in tune with IT Act 2000 Physical Front Offices for customer facilitation Multiple payment options including electronic and traditional Bank payments Digitization of 5 Cr pages of pages of legacy documents Electronic workflow driven paperless MCA back office Highly scalable IT solution Electronic Administration Forum, Morocco

9. Big-Bang Approach • Modernization, not mere Computerization • Re-engineering • Holistic, service-focused approach • Implemented on BOOT Basis with PPP Potential • Managed computing infrastructure coupled with business-continuity plans • Service level agreements (SLA) with project operator • Pilot run to identify problems upfront • Institutional mechanism for project and SLA monitoring Electronic Administration Forum, Morocco

10. Project Structure • Concept Phase • Proof-of-concept (for technical viability) • Approval by Council of Ministers • Bid Process & Partner Selection • Solution Construction • Pilot Phase: Coimbatore & Delhi • National Rollout • 6 year operation contract Electronic Administration Forum, Morocco

11. Project Scope • Nationwide coverage • All companies (Public, Private, Not-for-Profit) • All aspects of Company Governance • Nearly 100 Services • Potential for ‘value added services’ • Comprehensive MIS • Compliance Management & Regulation • All of the above in the electronic mode with 24 x 7 access Electronic Administration Forum, Morocco

12. Service Portfolio • Name Approvals and Incorporation of new companies • Filing of annual statutory returns • Corporate Governance related filings • Charge matters • Grant of all approvals under Companies Act • Registry access to public records of companies • Provision of certified copies of public records • Providing a forum for redressal of investors’ grievances Electronic Administration Forum, Morocco

13. Visible Achievements • Procedural uniformity across all offices • Speed and certainty of service delivery, with ease of access • Transparency – status of processing of filings and approvals • Problem of malpractices inherent with a paper-based system addressed (such as ante-date filings, incomplete filings, replacing documents, etc.) • Establishment of a dependable data for effective compliance management • Platform for further processes refinement (e.g. central registry) • A channel to both understand and be receptive to the stakeholders’ problems and emerging needs • Viability of Public-Private Partnership model • Empowerment of the citizen/investor with authentic data about companies through the Internet Electronic Administration Forum, Morocco

14. Impact on Service Delivery Efficiency Nature of Service Prior to MCA21 After MCA21 Name Approval: 7 days 1-2 days Company Incorporation: 15 days 1-3 days Change of Name: 15 days 3 days Charge Regn./ Modification: 10-15 days 2 days Certified Copy: 10 days 2 days Registration of Other Documents Annual Return 60 days Instantaneous Balance-sheet 60 days -do- Change in Directors 60 days 1-3 days Change in Regd. Office Address 60 days 1-3 days Increase in Auth. Capital 60 days 1-3 days Inspection of Public Documents On-line Focus on delivery of all business critical services in 48 – 72 hours Electronic Administration Forum, Morocco

15. Operational Statistics • Average portal hits: 3 mn/day • Peak Portal hits: 6.5 mn (single day) • Avearge Annual filings : 4 mn (approx) • New Co. registered online: 200,000 • Total DIN issued till date: 800,000 • Company docs viewed online: 600,000 • E-filing rate (portal & CFC): 93% • Max filings on any day: 42,000 • Bank remittances: 97% in T+3 days Electronic Administration Forum, Morocco

16. Challenges - Internal • Acceptance of change – mindset • Involvement in Re-engineering Exercise • Constant communication • Handholding during & post implementation • Employee Expectations – incentives • Managing productivity & operational issues Electronic Administration Forum, Morocco

17. Challenges - External • Clear identification of all stakeholders’ needs • Constant involvement of stakeholders • Close working with Professionals (key group) • Media & Communication plan • Extensive presentations and seminars nationwide • Sensitiveness to user responses • Addressing digital divide issues (RFO, CFC) • Help Desk Electronic Administration Forum, Morocco

18. Innovation • Service Delivery Gateway • Transfer of data from eForm to Database • Automated form fill & pre-scrutiny • Role Check • Automated Approvals (STP) • Multimodal methods of payment • Database Linkages • DIN-CIN • PAN, Trademarks, etc. Electronic Administration Forum, Morocco

19. Institutional Mechanism • Concept Development : NISG • Selection of Project Partner: UTITSL • Project Partner: TCS • Audit & Certification: STQC • Operations Monitoring: PMU • Management Support: MCA eGovernance Cell • Future Sustenance: SPV Electronic Administration Forum, Morocco

20. Recognitions Golden Icon’ in 11th Eleventh National e-Governance Conference 2008 Dataquest IT Path Breaker Award 2006 “Skoch Challenger Award 2008” ‘Certificate of Excellence’ at Technology Sabha, 2008 Recognized as “a revolutionary step by the Government” in a survey conducted by Ernst & Young Electronic Administration Forum, Morocco

21. MCA21 – Role Model in NeGP ‘Design First’ Approach – RFP Document Holistic outsourcing – PPP viability Digitization of legacy – factory approach RFO – Addressing Digital Divide DSC – largest usage worldwide Back office workflow – productivity management Gateway – simplifying interoperability Green project – eForm (paper elimination) Electronic Administration Forum, Morocco

22. Thank-you Electronic Administration Forum, Morocco