Key Highlights
The government in plans to reduce the time period for the incorporation of a company to three days.
India achieves 77th place in the World Bank ease of doing business index released in October last year.
Department for Promotion of Industry and Internal Trade (DPIIT) targets to enter in top 50 in the list of ease of Doing Business.
In the past decade Government of India has taken several steps to boost entrepreneurs to come out of their box and initiate a business to bring a revolution in the market and ease the life of folks. In the same move now the government is planning to further simplify the process and lower the time period for the incorporation of a company.
Under the new proposed system, a single clearance with seamless registration of Permanent Account Number, Goods and Services Tax, Tax Account Number, Employee State Insurance Corporation and Employee Provident Fund Organization will lead to the completion of the process in flat three days.
According to the ET report, with these reformations Department for Promotion of Industry and Internal Trade (DPIIT) wishes the country shall scale up in the Ease of Doing Business ranking to enter the top 50. There are few issues which are emerging as a barrier in implementing this rule. The major obstacle is in getting a name reservation that is being sorted out by the MCA because here there is involvement of various agencies delays the clearance process. A flawless process is being proposed for registration with all central agencies being brought under a single layer.
In the new process, an alternative to digital signatures is also proposed as a move to speed up registrations. In the World Bank ease of doing business index released in October last year, India has done pretty well and has jumped 23 points to attain 77th place as the government put special efforts in shrugging off bottlenecks for businesses. But still, India has to put lots of efforts to trace China having a 44th position, US 4th, and Singapore 2nd position. This ranking by World Bank is done by taking various parameters into consideration as getting electricity, starting a business, getting credits, paying taxes, trading across borders and dealing with construction permits.
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