The government will soon bring in changes in the registration process for new companies to make it faster and more user-friendly, wherein applicants will be required to provide only "need-based" information, a senior official said. Corporate Affairs Secretary Injeti Srinivas said that if only need-based information is taken from the applicants, then with minimal information the name of a company can be reserved. "At that stage, it might not be necessary to give so many other details because name reservation might not lead to registration. Now, name is reserved for 20 days and earlier it was 60 days.
Information should be need-based and need not increase the information burden on the applicants," he told PTI.
A new name reservation service is being developed and is likely to be in place on January 26, according to information on the ministry's website. The ministry is implementing the Companies Act, among others. About the Central Registration Centre, Srinivas said it has been successful and that the same could be extended for registration of Limited Liability Partnerships (LLPs). "Very soon, we will bring out some changes, which will make the registration process a faster exercise and more user friendly. It will be comparable with best systems prevailing across the world," he told PTI. There are around 12 lakh active companies. According to Srinivas, compliance rate would increase if cost and time required for compliance is reduced. "If enforcement is effective, compliance will go up. This is where the whole focus should be," he added. On Friday, the ministry launched a corporate data portal, through which stakeholders can soon have customised data on corporates, including about independent directors.