NEW DELHI: The government is looking to develop a single online compliance framework for India Inc to enable companies to comply with different regulatory requirements at one go, an official privy to the development said.
“The idea is to reduce compliance burden,” a senior official told ET.
The corporate affairs ministry has initiated discussions with various regulators including the Reserve Bank of India, Securities and Exchanges Board of India (Sebi), and the Department for Promotion of Industry and Internal Trade, on the possibility of creating a single platform or compliance forms with common data sources, the official said.
Coming after other key initiatives such as one nation one tax, and faceless assessment under income tax, the move is expected to significantly boost ease of doing business in the country.
The objective of the proposed single platform would be to integrate databases of the corporate affairs ministry (MCA) and other bodies to bring down duplication in filing, the official said. “This will help in ease of doing business.”
Companies at present have to make multiple filings. Different regulators have different requirements and formats for submission of data.
Once the common platform is in place, companies can file all their data in one place and regulators can get their data from one source, experts said.
“There should be a single repository from which all regulators can pull the required data,” said Pavan Vijay, founder of business advisory firm Corporate Professionals. “Some regulators may require additional information which they can request separately, but 80-90% of their requirements they should get from this single repository,” he said.
“This will reduce time and compliance cost,” Vijay said. It will also reduce the scope to manipulate information being sent to different regulators in order to comply with different regulations or to avoid taxes, he said.
A new company now automatically gets a permanent account number without having to make a separate application due to integration of the income tax and corporate affairs platforms as also nine more services including provident fund registration.
MCA is now keen to integrate various other platforms to ensure that companies are saved from the task of multiple filings with multiple bodies including the regulators. Trade Receivables Discounting System (Treds) for micro, small and medium enterprises (MSMEs) is also being integrated.