NEW DELHI: 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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