MCA CMS Portal

MCA CMS Portal

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MCA CMS Portal

With a view to streamlining the compliance part of the companies, increase transparency and penalise the defaulters, the Ministry of Corporate Affairs has newly introduced a Compliance Monitoring System. The portal is named MCA CMS, which means the Ministry of Corporate Affairs Compliance Monitoring System.

The Compliance Monitoring system works on Artificial Intelligence. Based on Artificial Intelligence, the MCACMS portal automatically detects the non-compliance and digitally sends Show Cause Notice to the defaulter company or director. The said defaulting company or director is required to submit their defence reply digitally via MCACMS portal.

The present article briefs the MCACMS Show Cause Notice and also lays down the steps the company/director needs to follow to file the defence reply.

MCACMS Show Cause Notice

As mentioned above, the company/director would be digitally served a show-cause notice on MCACMS portal. The show-cause notice so served would contain following details:

  • CMS reference number.
  • Type of non-compliance.
  • Section under which the Show Cause Notice has been issued.
  • Due date of filing of the defence reply.

The company is obligatory to serve the copy of the Show Cause Notice to the Directors or KMPs. Such MCACMS Show Cause Notice will be deemed to have been served upon every defaulting officers of the company as per the Companies Act, 2013.

Steps for filing the defence reply to MCACMS Show Cause Notice

The defaulter who has been served an MCACMS Show Cause Notice is required to digitally submit the defence reply following the below steps:

  1. Visit site
  2. Enter the appropriate ‘Username’, ‘Password’ and Captcha.
  3. Click ‘Reply for Show Cause Notice’.
  4. Enter the appropriate ‘CMS Reference No.’ and click ‘Search’.
  5. OTP (One Time Password) would be generated and send to the registered email address where the Show Cause Notice has been served.
  6. Enter the OTP and proceed.
  7. Enter the defence reply.

It should be noted here that defence reply can be submitted within 500 words. However, in case the defence reply contains more than 500 words, the same needs to be printed on the Company’s letterhead. Such defence reply needs to be authenticated by a Director or the Company Secretary of the company and submit the same as an attachment.

Submit the defence reply and Record the acknowledgement

It is important to be mentioned here that the defence reply needs to be filed/submitted within a period of 15 days from the date of the notice.

In case the company or directors thereon doesn’t file any defence reply, against the notice, it would be assumed that the company is accepting the default and has nothing to reply in the matter. In such case of non-reply, the Registrar of Companies would initiate the penal action against the company/director as mentioned in the Show Cause Notice.

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Post by Arnold Thomas

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.