In a major move to make it easier to do business in India, the corporate affairs ministry said on Friday that it is trying to bring down the average number of days required for incorporating a new com
In a major move to make it easier to do business in India, the corporate affairs ministry said on Friday that it is trying to bring down the average number of days required for incorporating a new company to just one to two days.
Businesspersons have usually complained that it takes a long time in India for a new company to register. Also they have been complaining that they have to take permission from a number of government agencies to start a new business in India.
The government in past one year has taken a number of steps, and is in the process of further streamlining processes and the regulatory framework, to reduce the overall time taken for incorporating of a company as a part of ‘ease-of-doing business’ effort, said the corporate affairs ministry.
“As a result of many steps taken by the ministry, the average number of days taken for incorporation of a company has come down significantly from 9.57 days in December 2014 to 4.51 days in November 2015,” it said.
Among the steps taken by the ministry include introduction of an integrated incorporation Form INC29 and tighter monitoring of Registrar of Companies’ (RoCs) performance, which resulted in faster approvals and lesser number of clarifications being asked from the stakeholders, it said.
“The ministry will soon introduce a new version of Form INC29 incorporating suggestions received from the stakeholders allowing up to five directors to be appointed and greater flexibility in proposing a name for a company,” said the ministry.
The rules with regard to reserving and approving of names for companies are also being simplified, said the ministry.
India has jumped 12 places to rank 130 out of 189 countries in the World Bank’s ease of doing business report. PM Narendra Modi aims to catapult India into the list of top 50 countries on the ease of doing business.
