§ New enterprises will be able to incorporate a
business by filing just one form starting Friday
against eight separate forms earlier, as part of govt's drive to make it easier
to do business in the country.
§ Entrepreneurs keen on setting up new
enterprises will be able to incorporate one by filing just one form starting
Friday against eight separate forms earlier, as part of the government's drive
to make it easier to do business in the country.
§ The corporate affairs ministry will from May 1
have an integrated company incorporation form to make compliance and reporting
easier and convenient for corporates.
§ "Name availability, allotment of Director
Identification Number (DIN), company incorporation and commencement of business
will now be possible through a single form," said a senior ministry
official who sought anonymity.
§ The new form, called INC-29, will be available
on the MCA website. This is part of the government's drive to improve India's
ranking on the globally tracked parameter of ease of doing business. This is a
priority area for PM Narendra Modi, who has made it a personal mission to
improve India's scores on this parameter. The government wants to reduce the
time taken to register a company in India to one day.
§ Modi has said he wants India to be at 50th
position in two years among countries ranked by the World Bank in its annual
Ease of Doing Business survey.
§ The Ease of Doing Business survey captures the
ease with which one can open, conduct and close down businesses. The country
was ranked 142 among 189 economies by the World Bank in 2015, down two notches
from the preceding year. In 2006, when the index was launched, India was ranked
116. On the crucial 'Starting a Business' parameter, the country was ranked
158, again down two places from the preceding year.
§ Entrepreneurs have long complained about the
various hassles they face in setting up businesses in India, so much so that
many startups prefer to incorporate their businesses in countries such as
Singapore. The reasons for this range from a multitude of forms to a plethora
of permissions from central and state governments.
§ Currently, businessmen seeking to register a
new company are required to fill eight forms to complete the incorporation, a
process which, besides being cumbersome, also takes a lot of time. Even if it's
a single-person company, the range of forms required to be filled included
separate applications for obtaining DIN, obtaining a DSC (digital signature
certificate), form INC-1 for approval of the name of the company, form INC-7
for registration of the company along with memorandum of association and
articles of association, form INC-22 for intimation of registered office and
form DIR12 for each director.
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