Chartered Accountants Association gives Representation on Challenges faced in registering Firms

The Karnataka State Chartered Accountants Association (R) (in short ‘KSCAA‘) is an association of Chartered Accountants, registered under the Karnataka Societies Registration Act, in the year 1957. In the past, we have written to various authorities many times populating various issues, challenges and hardships being faced by the business community, while also suggesting possible solutions to the same.

Shri Narendra Modi, Prime Minister of India, stated that it is vital to limit human participation in processes and boost the use of modem and digital technologies. He believes that a work culture based on this will encourage policy-driven governance even more.

Through this representation, we would like to bring to your kind notice, a few practical issues being faced by the community. These difficulties can have a significant impact n an individual’s or organization’s ability to incorporate, operate and achieve their goals. It is important to acknowledge these difficulties and work towards finding a resolution. This could include simplifying the process, grant of instant registration, reducing wait times, elimination of human intervention and making it easier to navigate the requirements and procedures. For every issue, challenge or hardship highlighted, we have also suggested solutions.

1. The Indian Partnership Act, 1932 was enacted to define and amend the law relating to partnership. Section 58 of the Act contains detailed provisions relating to the Application for Registration and Section 59 of the Act contains the provisions relating to the grant of Registration by the Registrar on the satisfaction of Section 58.

2. In relation to this, the Department of Stamps and Registration, Government of Karnataka issued a circular dated 27.10.2017. This Circular directed all the District Registrars and Sub Registrars of the State to process the applications for registration and register online when the applications are submitted through the online portal (kaverionlinefirm.karnataka.gov.in). A copy of the relevant circular is enclosed herewith.

3. This circular, however, is not being followed in letter and spirit, and the responsible authorities are looking for methods to deny the application due to a lack of authority. In certain circumstances, applications are just “under processing” and remain thus indefinitely.

4. We also wish to highlight that the above applications are covered under the Flagship legislature of State Government of Karnataka i.e. the Karnataka Sakaala Services Act, 2011 amended in 2014. According to the this, the above applications are to be disposed off within 3 days from the date of filing – which is not being followed correctly thereby being in complete violation of the above provision of law.

5. We request your good selves to issue appropriate instructions to the officials to comply with the circulars and where needed, make appropriate changes/ modifications in the software/website.

We believe that by addressing these challenges and finding a resolution, we can create a more efficient and effective registration process that benefits everyone. We look forward to working with the relevant authorities to find a solution that addresses the difficulties in obtaining registration.

We are bringing to you the aforementioned concerns, obstacles, and sufferings experienced by taxpayers, trade, industry, and professionals as a result of the law’s implementation. We have also made recommendations for your consideration where appropriate.

We the members of Karnataka State Chartered Accountants Association, on behalf of the entire Chartered Accountants fraternity and also on behalf of the trade and industry in the state of Karnataka appeal to your good selves to kindly consider our above recommendations on various issues populated as above. Implementation of the above suggestions will be a major step in the direction of ‘Ease of doing business‘.

For Official Representation Download PDF Given Below: