Companies may take only 3 days to register with central agencies (ease of doing business)
In a bid to break into the top 50 countries for ease of doing business, India may soon put in place a simple, single clearance process to incorporate a company with seamless registration of permanent account number, Tax Account Number, Goods and Services Tax, Employee Provident Fund Organisation and Employee State Insurance Corporation in flat three days.
The Department for Promotion of Industry and Internal Trade or DPIIT, is working on the next set of measures for improving India’s Ease of Doing Business ranking by 27 places for the country to enter the top 50.
At present, there are issues on name reservation that is being sorted out by the ministry of corporate affairs, said a senior government official.
Sometimes, due to queuing at other agencies, clearances can take longer, which is being fixed.
A seamless process in html format is being proposed for registration with all central agencies, which will ensure a single layer of process.
An alternative to authentication in place of digital signatures will be established as part of this plan to speed up registration.
India jumped 23 points in the World Bank’s ease of doing business ranking to 77th place in October last year.
In the last two years, the country has climbed 53 notches as the government put special efforts in removing bottlenecks for businesses.
The World Bank had recognised India as one of the top improvers for the year. In the 2014-18 period, India climbed 65 places while China dropped 27 places.
The six reforms recognised in this year’s report are starting a business, getting electricity, dealing with construction permits, getting credit, paying taxes and trading across borders. The World Bank had noted eight reforms last year.
The DPIIT’s plan for ranking upgrade also includes changes to the insolvency framework to make it more effective and to align it with international best practices, property registration, payment and refund of taxes and enforcement of contracts.
India ranks below 100 in some of these heads, which the DPIIT is looking to set right.
The blueprint also includes an extensive plan involving state agencies to bring other agencies on board for integrated clearances for businesses.