The MCA-21 e-Governance project of the Ministry of Company Affairs, when successfully implemented, will enable smooth entry and exit of companies into India "in a dynamic world economic order".

Speaking at an interactive session organised by the Indian Chamber of Commerce here on Tuesday, Mr Prem Chand Gupta, Union Minister for Company Affairs, said MCA-21, by facilitating uniform transmission of information amongst MCA offices across the country, "will have a visible impact on `doing business' in India, especially when a recent World Bank report has placed India at the 77th place in terms of the time taken for starting a new business."

Pointing out that the Ministry has taken up MCA-21 as one of the Mission-Mode projects of the Central Government, he said Tata Consultancy Services has been given the responsibility for managing and operating the project for a period of six years from now.

"We have been aspiring for a world-class, speedy and efficient service delivery system in terms of incorporation of companies, event-based filings and other activities."

The Minister also urged the corporates and professionals in the city to be in a state of readiness and obtain Director Identification Number (DIN) and Digital Signature Certificates (DSCs) so that the region may lead others in switching over to e-filing of documents to ROIC offices from their virtual offices. He said MCA-21 is likely to be launched in Kolkata before the end of this month.

New initiatives

Besides a comprehensive revision of the companies Act, 1956 and amendments to legislation governing the professions of CAs, Company Secretaries and Cost and Works Accountants, Mr Gupta said utmost priority was now being given to development of new legislation to provide for Limited Liability Partnerships (LLPs).

`30-year dream'

Describing the LLPs as a 30-year dream of the Prime Minister, Dr Manmohan Singh, as it would greatly benefit the SME sector, he said the concerned Bill will be placed in the forthcoming monsoon session of Parliament.

Pointing out that there need be no fears over any disharmony between SEBI Act and the new Companies Act, he said the streamlined new Companies Act, once passed by Parliament in the winter session, should come into effect from mid 2007. He said work on the revision of provisions was at an advanced stage.

Mohan Padmanabhan