Centre clarifies Companies Act not applicable in Sikkim amid concerns over MCA21 issues

The Ministry of Corporate Affairs (MCA) has clarified that the Companies Act, 2013 is not applicable to Sikkim, dispelling concerns raised over the difficulties faced by businesses in the state with respect to MCA21 filings and corporate registrations.

The clarification came in response to a question raised in the Rajya Sabha by MP Dorjee Tshering Lepcha, who pointed to operational challenges encountered by entrepreneurs, start-ups, MSMEs and cooperative bodies in Sikkim, particularly due to poor connectivity and the absence of local facilitation centres needed to access the MCA21 digital portal.

 

Addressing the House, Minister of State for Corporate Affairs, Harsh Malhotra, said the issues flagged do not fall under the purview of the Companies Act as the legislation itself is not enforced in Sikkim.

 

“The Companies Act, 2013 is not applicable in the State of Sikkim,” the minister stated, adding that questions relating to corporate support services or exemptions under the Act therefore do not arise.

 

Malhotra also indicated that the Ministry is not currently considering any special provisions or policy interventions for Sikkim related to corporate compliance or ease of doing business, given the legal exception that exists for the State.

 

The statement reaffirms Sikkim’s distinct legal status within India’s corporate regulatory framework and underscores the Centre’s stance on existing financial and administrative arrangements governing the Himalayan State.