MCA Full Form, Functions & Responsibilities

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MCA Full Form, Functions & Responsibilities

MCA full form is Ministry of Corporate Affairs. It is one of the key Ministries of the Government of India. The role of MCA is to govern the Indian corporate sector, and ensure the corporate governance practices are followed by the companies and other business entities in India. 

Check out this blog post to learn about the MCA, Acts it administers, its statutory bodies, attached and subordinate offices, and functions and responsibilities of the MCA!

What is the Full Form of MCA?

MCA full form is the Ministry of Corporate Affairs. This ministry, which is part of the Government of India, was established in May 2004 following the separation of the former Department of Company Affairs (DCA) from the Ministry of Finance. The DCA itself was created in 1956 as a division of the Ministry of Finance to oversee the Companies Act of 1956. In 2004, the DCA was elevated to the status of a full-fledged ministry, resulting in the formation of the Ministry of Corporate Affairs.

The Ministry launched the MCA21 project in February 2006 as part of an e-Governance initiative. This project covers all aspects of company incorporation and regulation. It is a comprehensive program that enables electronic filing of documents, registration of companies and public access to corporate information online via a secure interactive portal. 

At present, the Minister of MCA is Smt. Nirmala Sitharaman. Shri Harsh Malhotra is the Minister of State in the Ministry of Corporate Affairs. The Secretary to the MCA is Ms. Deepti Gaur Mukerjee. The MCA address is: 5th Floor, A-Wing, Shastri Bhawan, New Delhi (110001).

Acts Administered by MCA

The MCA is primarily concerned with administration of the following Acts: 

• The Companies Act, 2013

• The Companies Act, 1956

• Insolvency And Bankruptcy Code, 2016

• The Indian Partnership Act, 1932

• Societies Registration Act, 1860

• The Companies Amendment Act, 2006

• The Limited Liability Partnership Act, 2008

• The Competition Act, 2002

• The Monopolies and Restrictive Trade Practices Act, 1969

• The Chartered Accountants Act, 1949 (As amended by the Chartered Accountants (Amendment) Act, 2006)

• The Company Secretaries Act, 1980 (As amended by The Company Secretaries (Amendment) Act, 2006)

• The Cost and Works Accountants Act, 1959 (As Amended By The Cost And Works Accountants (Amendment) Act, 2006)

• Companies (Donation to National) Fund Act, 1951

Attached/Subordinate Offices of MCA

The attached and subordinate offices of the Ministry of Corporate Affairs include:

• Insolvency and Bankruptcy Board of India (IBBI)

• Serious Fraud Investigation Office (SFIO)

• Office of Official Liquidator 

• Registrar of Companies (ROC)

Statutory Bodies of MCA

The statutory bodies of the MCA are as follows:

• Institute of Chartered Accountants of India (ICAI)

• Institute of Company Secretaries of India (ICSI)

• Institute of Cost Accountants of India (ICMAI)

• Investor Education and Protection Fund Authority (IEPFA) 

• National Company Law Appellate Tribunal (NCLAT) 

• National Company Law Tribunal (NCLT) 

Functions and Responsibilities of MCA

The functions and responsibilities of MCA include the following:

• The MCA is responsible for overseeing the corporate sector and ensuring corporate governance is practiced by organizations. 

• It ensures the businesses adhere to legislations such as the Companies Act 2013, the LLP Act 2008, IBC 2006, etc.

• To ensure fair competition in the marketplaces, the MCA oversees whether companies adhere to the Competition Act 2002.

• It supervises professional bodies such as ICAI, ICSI, ICMAI, etc.

• MCA monitors companies in India to make sure they function within the legal framework.

• The Registrar of Companies - an office within the MCA - is responsible for registering companies and granting them certificates of incorporation.

• MCA comes up with reforms for simplifying business registration and reducing compliance burdens. To make sure the regulatory environment operates in a smooth way, the Ministry partners with other government bodies such as the RBI, SEBI, GST Council, etc.

• The Ministry of Corporate Affairs is responsible for enforcement of Corporate Social Responsibility (CSR) regulations. These regulations require companies that meet a certain financial criteria to decide a part of their profits towards social welfare programmes. 

• MCA monitors the roles of auditors, chartered accountants, company secretaries and cost accounts to make sure they follow the professional standards and work ethically. 

• To promote investor awareness, the MCA, via the statutory body IEPFA, comes up with initiatives. This helps to make sure the investors are aware of the rights they have and can make wise, informed financial decisions.

• The Ministry, via SFIO, investigates complex corporate frauds as per S. 212 of the Companies Act of 2013.

• It promotes ease of doing business in India via the Central Processing Centre (CPC) for streamlined corporate filings, fast-track mergers and e-Adjudication portals.

• MCA administers the NCLT’s functioning. The NCLT adjudicates corporate disputes, insolvency matters and other matters related to the company law.

• MCA enhances business performance. It does this via implementation of regulations that promote transparency, accountability and good governance.

Conclusion

The Ministry of Corporate Affairs, abbreviated as MCA, is a Ministry of the Indian Government. It keeps an eye on the companies and other business entities in India to ensure adherence to ethical practices in the corporate sectors. The official portal of MCA is used for registering companies, filing annual returns, etc. If you need assistance in ensuring compliance with requirements set forth by the MCA, you can connect with company compliance consultants at Registrationwala! 

Frequently Asked Questions (FAQs)

Q1. What is the full form of MCA in company?

A. MCA full form in company is Ministry of Corporate Affairs.

Q2. Which Ministry oversees the chartered accountants and company secretaries in India?

A. The MCA oversees the chartered accountants and Company Secretaries in India through ICAI and ICSI, respectively.

Q3. Which office of the MCA is responsible for registering companies in India?

A. The Registrar of Companies is responsible for registering companies in India.

Q4. What does the Serious Fraud Investigation Office do?

A. The Serious Fraud Investigation Office investigates and prosecutes complex corporate frauds assigned under section 212 of Companies Act 2013.

Q5. Does MCA regulate limited liability partnerships in India?

A. Yes, the MCA does regulate the limited liability partnerships in India.

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