Good News for startups which were wary of the mammoth process of filling numerous to incorporate their business. The corporate affairs ministry will now be providing one integrated company incorporation form in place of eight forms required earlier. This has eliminated 90% of paperwork making compliance and reporting procedures easier.
The above said process will be effective from today i.e. May 1. A senior ministry official said on the development that major requirements like Name availability, allotment of Director Identification Number and commencement of business will be possible through this single form.
The new form will be called INC-29 and will be available at Ministry of Corporate Affairs website. This move is part of government’s drive to improve India’s ranking on the index of ease of doing business. The country was at 134th rank out of a list of 189 countries. Earlier in 2006 when the index for first introduces India stood at 116th position but slipped later.
The Modi Government faced criticism by investors and companies as they were impatient over the crawling pace of initiating reforms towards creating business friendly environment.
Many startups chose countries like Singapore to register their companies to avoid the delay and many hassles involved in starting their businesses in India.