NEW DELHI: In a major push by the Government to improve ease of doing business in India, by March-end you will be able to start a business in India in six days, compared to the current 26 days. The number of procedures will also be halved from the current 12 to only six.
Currently there 12 procedures in Delhi that a company needs to follow to incorporate a company. If you are in Mumbai the number goes up to 14 as you have to register for Profession Tax and receive inspection and obtain Shops and Establishment registration certificate.
Currently New Zealand, with only half a day needed, has the best track record in the number of days it takes to start a company. In Singapore it takes about 2.5 days to start a company. In the US it takes about 5.6 days and in the United Kingdom it takes about 4.5 days. When this change is implemented, India will take a big leap in terms of matching these countries.
"As per World Bank it takes 26 days to start a business in India. Our target is to bring it down to 6 days by the end of March. This is the kind of dramatic change we want to," Department of Industrial Policy and Promotion, Secretary, Mr. Ramesh Abhishek said recently.
According to DIPP the proposed 6 procedures for starting a business would now be:
1. Incorporate a company using SPICe Form.
2. Obtain PAN and TAN though a single integrated form.
3. Register with EPFO and ESIC.
4. Open a Bank account.
5. Register with VAT and Profession Tax; online and real time.