The Ministry of Corporate Affairs has provided an official update stating that companies and limited liability partnerships (LLPs) can now be incorporated using the National Single Window System (NSWS) established by the central government. This system streamlines the process by consolidating various central and state approvals into a single platform.
With the NSWS, businesses can now obtain government approvals without the need to approach individual ministries or states. The portal offers essential features such as real-time tracking of application status, prompt support for queries, and document security. It currently hosts applications for approvals from 31 central government departments and 22 state government departments, as per information available on the portal.
The NSWS has been integrated with the MCA21 portal to facilitate the incorporation of companies and Limited Liability Partnerships (LLPs). The ministry stated that this service can be accessed from both the NSWS portal and the MCA21 portal.
The government has been gradually introducing various regulatory services under a single platform to enhance the ease of doing business. A government official highlighted that the MCA21 portal offers multiple services, including PAN, bank account, and GST registration, which can be obtained simultaneously while applying for business incorporation.
In the near future, the ministry aims to introduce a new IT module on the MCA21 portal to handle the adjudication of compliance defaults and other lapses that have been decriminalized. The objective is to minimize physical interactions between authorities and the business community, enabling virtual management of approvals and adjudication. This approach will enhance objectivity in decision-making processes.
The ministry is adopting a centralized and ‘faceless’ decision-making model, similar to the income tax department’s approach to income assessments and appeals. In April, the Corporate Affairs Ministry introduced a centralized processing centre for the voluntary winding up of companies in April.
Read Also: Latest Official Updates Under Company Law by the MCA Dept
The move resulted in a reduced timeline of approximately 100 days compared to the previous duration of around 180 days for companies to exit business, according to sources.
Furthermore, the ministry has initiated a review of all regulations in consultation with the business community to explore avenues for reducing the cost of doing business.
