The Government of India has been actively engaged in the process of easing provisions related to doing in business in India. Various departments of Government of India have come out with various initiatives for creating ease of doing business in India. These initiatives include ease in the process of incorporating company& LLP, their governance and also for winding up.
Some of the recent initiatives taken by the Ministry of Corporate Affairs (MCA) for Ease of Doing Business are as follows-
- Deployment of web form SPICe+ which offers a bouquet of 10 services and including opening of Bank Account in the name of Company.
This process not only has reduced the time for incorporating companies but has also reduced cost of incorporating the same.
- Establishment of Central Registration Centre (CRC) for fast processing of applications for name reservation & incorporation of companies.
This process has fastened the process of name reservation and incorporation of companies that the applications for the same be processed and completed within D or D+1 days (D=Date of Payment Confirmation).
- License for incorporating Section 8 Company
Earlier for incorporating a company under section 8 i.e. a company with charitable objects, license was required to be taken in e-Form INC-12 which used to take a lot of time, now the license can be taken along with incorporation form, which has consequently reduced the time for incorporation Section 8 Company.
- During the time of outbreak of Coronavirus, the Ministry came up with Companies Fresh Start Scheme, 2020 (CFSS)
As the name suggests, CFSS was introduced with the sole object of giving non- compliant companies an opportunity to become fully compliant companies, by filing all necessary forms with the MCA without payment of any additional fees including Form DIR-3 KYC & INC-22A.
- Insolvency Resolution Process (IBC)
Under the Insolvency & Bankruptcy Code, the Corporate Insolvency Resolution Process (CIRP) has been simplified and time bound resolution process has been introduced which has resulted in timely resolution of Insolvency Proceedings by the NCLT.
- Incorporation of LLPs
Introduction of RUN-LLP Form in place of LLP Form 1 for reserving the name and FiLLiP Form in place of LLP Form 2 for incorporation has simplified establishment of an entity as LLP. Also, earlier LLP incorporations were done in respective ROCs,now this process is made centralized to keep it at par with companies and as a part of Starting a business in India.
Thus, these are some of the initiatives amongst many other which are undertaken by the Government of India for making incorporation and sustenance of entities a hassle free process in India.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
CS Neetu Saini
AKGVG & Associates