Artificial intelligence to be Used for Compliance under Companies Act: MCA introduces Chatbox to assist with Statutory Filings

Artificial intelligence - Companies Act - MCA - Chatbox to assist - Statutory Filings - Taxscan

In a move to incorporate technology and artificial intelligence into the compliances under the Companies Act, the Ministry of Corporate Affairs (MCA) building a new version of its compliance platform for companies. The Enterprises Act is expected to become more interactive in the coming months.

According to a person familiar with the project, the new ‘business module’ on the ministry’s compliance site will include chatbots to assist with filings, web forms rather than portable document format (PDF) forms, and artificial intelligence to guide the user through the filing process. The goal is to make the portal more responsive and to increase the convenience of doing business, particularly for small enterprises that may not have the resources to retain compliance consultants.

The ministry, which recently launched a comparable module for limited liability partnerships (LLPs), anticipates that the new business module will be fully functioning in two months.

Given that over 1.4 million active companies use the ministry’s MCA21 portal for statutory compliance, a more responsive and interactive technology interface with the regulatory authorities—Registrars of Companies (RoCs), Regional Directors, and official liquidators—will be extremely beneficial to businesses and professionals.

Since the new module will use artificial intelligence and data analytics to mine the information to spot trends in the corporate sector that may warrant the attention of regulators or policymakers, the new filing system will also influence the government’s administration of the regulatory framework under the Companies Act.

Earlier this month, the ministry requested bids from private researchers to analyze its database in order to shed light on business behavior in critical areas such as the level of leverage and whether monies obtained from the public were used for the stated purpose.

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