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The Narendra Modi-led BJP government marked Labour Day by making it easier to incorporate a new business, the Economic Times reported Friday.
Starting today, entrepreneurs need only fill out one form to start a business, down from the eight they had to submit until now.
The new form, called INC-29, will allow make compliance and reporting easier, the newspaper said, and will be available on the website of the Ministry of Corporate Affairs.
"Name availability, allotment of Director Identification Number (DIN), company incorporation and commencement of business will now be possible through a single form," a senior ministry official was quoted as saying.
The move is in keeping with Modi’s public avowal to improve India’s global ease of doing business ranking, which currently languishes at the 142 spot out of 189 economies. In a critical metric ‘Ease of Starting a Business’, India performed even worse, with a rank of 158.
The Prime Minister has in the past said publicly that he wants India’s position of the Ease of Doing Business survey to rise to 50 over the next two years.
The red tape that businesses faces while registering themselves, including at least 8 different forms for various permissions has been a pet peeve of entrepreneurs.
Currently, even for a single-person company, the forms required include 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, the newspaper said.
