Entrepreneurs now can incorporate a new company by filling just one form starting from today against eight separate forms earlier, as part of the government’s drive to make it easier to do business in India.
The Government is launching New Integrated Companies Incorporation Form – INC-29 that would be made available at MCA Site for filling for incorporation from 1st May 2015.
“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.
India ranks at a pathetic 142 among 189 countries economies by the World Bank in 2015, when it comes to ease of doing business in India. This is part of the government’s drive to improve India’s ranking on the globally tracked parameter of ease of doing business. The government wants to reduce the time taken to register a company in India to one day with only one form.
PM 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.
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 other countries where they can file it comparatively more hassle-free. The reasons for this range from a multitude of forms to a plethora of permissions from central and state governments.
Currently, startups are seeking to register a new company, 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.