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MCA's push to ease of doing business can help you incorporate your company in less than a day

The fact that the time taken for company incorporation was two days in February and to just about a day in March, shows how effective the policy initiatives have been within a month.

, ET Bureau|
Updated: Apr 26, 2017, 11.51 AM IST
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As many as 26 rules have been automated, five procedures for starting a business clubbed into one and as many rules deleted to ensure that almost 98,000 companies were incorporated from April 2016 to March 2017, about a 60% increase compared to 2015-16 numbers.
As many as 26 rules have been automated, five procedures for starting a business clubbed into one and as many rules deleted to ensure that almost 98,000 companies were incorporated from April 2016 to March 2017, about a 60% increase compared to 2015-16 numbers.
NEW DELHI: Half a day to reserve the name and a third to incorporate a company, the corporate affairs ministry’s push towards improving ease of doing business is on a roll and getting results.

The fact that the time taken for company incorporation was two days in February and to just about a day in March, shows how effective the policy initiatives have been within a month.

The ministry attributes this to simplified procedures and reduction in time and fees, through the successful implementation of e-governance initiatives such as the MCA21 portal and SPICe (Simplified Proforma for Incorporating Company Electronically) forms.

Marketed under a larger scheme of ‘government process re-engineering’, these initiatives have “…resulted in speed, greater transparency, uniformity and eradication of discretion”, according to the ministry notification.

As many as 26 rules have been automated, five procedures for starting a business clubbed into one and as many rules deleted to ensure that almost 98,000 companies were incorporated from April 2016 to March 2017, about a 60% increase compared to 2015-16 numbers.

The information published on the website, “the time taken for processing company incorporation applications reduced drastically from between 5 to 15 working days in June 2014, to an average of 0.6 working days in March 2017.”

“Similarly, the processing time for name availability applications has been brought down significantly from between 5 to 6 working days in June 2014, to an average of 0.4 days in March 2017.”

According to numbers published by the ministry, ever since the Ministry of Corporate Affairs (MCA) tie-up with the Central Board of Direct Taxes (CBDT) in February 2017, over 20,000 companies have received a Certificate of Incorporation within a day, including their Corporate Identity Number (CIN), Permanent Account Number (PAN) and Tax Deduction Account Number (TAN).

The establishment of the Central Registration Centre (CRC) for name availability and incorporation, and the National Company Law Tribunal (NCLT) for speedy adjudication of disputes with respect to corporate law matters, along with rules to protect minority investors through timely reporting of changes in the shareholding patterns, have also contributed to improving business sentiment.

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