Now Reading
Government Turns To AI, Data Analytics To Filter Out Shell Companies

Government Turns To AI, Data Analytics To Filter Out Shell Companies

Shell companies

With the objective of establishing an ecosystem that will have “zero tolerance” for non-compliance with regulations, the corporate affairs ministry is betting big on AI and data analytics to deal with shell companies. Using these technologies, the ministry is developing an advanced MCA 21 portal.

Used for submitting requisite filings under the companies law and managing a repository of data on corporates in India, the portal will enable authorities to weed out entities that do not comply with regulations. Typically, shell companies are floated for illegal activities like money laundering, and a zero tolerance approach to this, enabled by AI, can put a stop to these practices.

Register for FREE Workshop on Data Engineering>>

It would make it “almost impossible for a shell company to survive,” points out Corporate Affairs Secretary, Injeti Srinivas. According to the ministry, the latest version of the portal might be operational in a year.

Integrating AI Into MCA 21 Portal

Over the last few years, the corporate affairs ministry has been deregistering the names of companies from official records if they are found to be repeatedly violating regulations. AI and data analytics will help keep surveillance with respect to compliance on auto pilot mode on the MCA 21 portal.

See Also

“4.25 lakh shell companies have been struck off, and the numbers getting added each year is reducing. More companies are now becoming compliant, and the levels in terms of filings has crossed 80%,” Srinivas said in a statement. “This is a clear indication that the earlier scenario has become a matter of the past,” he added. 

The MCA 21 portal, now running in its version, was started in 2006. In addition to this system,  the KYC drive for companies has also prompted greater compliance.

What Do You Think?

Subscribe to our Newsletter

Get the latest updates and relevant offers by sharing your email.
Join our Telegram Group. Be part of an engaging community

Copyright Analytics India Magazine Pvt Ltd

Scroll To Top