Friday, 21 April 2017

Making it simpler and easier: Ease of Doing Business in India

Government of India has emphasized on the importance of ‘Ease of Doing Business’ as a major pillar of ‘Make in India’ initiative. Hon’ble Prime Minister Shri Narendra Modi has set a target for India to be ranked among the top 50 countries over the next 3 years in the World Bank Doing Business Study. In order to achieve this target all the departments / agencies concerned have come forward and implemented the reforms in the right earnest. The following are the few notable reforms:

1.    Requirement of minimum paid up capital and common seal under the Companies Act 2013 done away with.

2.   Registration for Permanent Account Number (PAN), Tax Deduction Account Number (TAN), EPFO (Employees' Provident Fund Organization) and ESIC (Employee's State Insurance Corporation) and incorporation of company can be done through a single form on eBiz portal.

3.      Time taken for obtaining PAN and TAN on eBiz portal has been brought down to T+1 days.

4.      Provision made for applying for company name and Director Identification Number (DIN) at the time of incorporation with single Form-INC29.

5.      Online and real time registration of ESIC and EPFO has been introduced.

6.      Provision for online payment of EPFO and ESIC contributions has been introduced.

7.    Requirement of bank account for registration with EPFO and ESIC has been made optional.

8.      Central Registry Rules have been amended to record security interests of all types of property.

9.      Number of documents required for imports and exports have been reduced to three.

10. All documents for export and import to be submitted electronically with digital signatures i.e. no physical submission of document.

11. Custom ICEGATE Portal has been integrated with Food Safety and Standards Authority of India (FSSAI), Animal & Plant Quarantine, Drug Controller & Wildlife Control Bureau for imports.

12.  Shram Suvidha Portal launched to issue unique Labour Identification Number (LIN), submission of common electronic returns under 8 Labour Acts and facilitate risk based inspections.

13.  Insolvency and Bankruptcy Code with provision of easy and faster exit, passed by the Parliament.

14.  SARFAESI (Central Registry) Rules have been extended to register extended security interests.

The above significant changes will scale down the number of procedures and days taken to start a business which will slash the costs involved as well. Starting business made simpler and easier by this step taken by The Government of India. These remarkable reforms have improved our rank in Starting a Business parameter from 164 to 155 over the last one year.

Have a great day ahead!

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