The Hindu Business Line : Online registration of cos by next year: Gupta

The Minister for Company Affairs, Mr P.C. Gupta, flanked by the Ambassador of Sudan and Dean of Arab Ambassadors, Mr A. A. Mohammad (left), and the Assocham President, Mr Anil K. Agarwal, at the 3rd Indo-Arab Conference in the Capital on Wednesday. - Ramesh Sharma

New Delhi , Nov. 16

THE Minister of State for Company Affairs, Mr Prem Chand Gupta, has said that by the end of next year, the corporate sector would no longer be subjected to filing of numerous documents for registration of their entities with the Government set to allow online registration facilities.

Beginning with two pilot projects, one in Delhi and the other in Coimbatore, the online registration facilities for new firms would be expanded across the country by mid-2006, the Minister said at the Third Indo-Arab Conference organised by the Associated Chambers of Commerce and Industry here on Wednesday.

TCS hired: Tata Consultancy Services has been hired to connect the Registrar of Companies with the Ministry so that the task of registration is done through e-governance. "Under e-governance services, investors and entrepreneurs will no longer be required to stand in queue for registration of a company," Mr Gupta told the ambassadors and industry representatives at the conference.

The online service would provide not only registration forms, but also information about names available for registration as also provisions for closure of a failed venture.

The Minister also urged the Arab investors to invest in the Indian market and infrastructure. He assured that reforms to address their concerns on insolvency and limited liability rules were being undertaken.

Revamping company law: As regards revamping of the company law, the Minister said following the recommendations of the J.J. Irani Committee, a draft Bill had been sent to the Law Ministry for vetting. The Cabinet's approval would be sought on the draft Bill after that. "We hope to introduce the draft Bill in Parliament during the budget session," he said.

Vanishing companies: On the issue of vanishing companies, Mr Gupta assured that rules were being tightened to plug loopholes in the registration process. "The new norms will require definitive identification, so that preventive steps are taken at the onset," he said.

Volcker report: Asked if the Ministry was making an investigation into the names of the companies that find references in the Volcker Committee report, the Minister said the Ministry was only examining the report and no investigations against the companies had been initiated.

He said over $36-billion worth of business was conducted with Iraq under the UN-monitored Oil-for-Food programme in which 3,600 companies world over did business in which the share of India was not even half a billion.

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