Ease of Doing Business made easy; MCA bring about greater transparency in corporate structure

New Delhi, December 23: In pursuance to provide greater Ease of Doing Business, bring about greater transparency in corporate structure and fostering better corporate compliance under the Companies Act of 2013, the Corporate Affairs Ministry on Monday took several initiatives for to law abiding corporates.

 

These include creation of institution of a robust Insolvency and Bankruptcy framework. India has improved its ranking on the World Bank’s Doing Business 2020 report moving up 14 positions to 63rd position as compared to 77th position in 2018.

 

India’s leap of 14 ranks in the Ease of Doing Business ranking is significant considering that there has been continuous improvement since 2015 and for the third consecutive year India is amongst the top 10 improvers.

 

The Ministry has contributed towards insolvency resolution. India’s ranking jumped 56 places to 52 in 2019 from 108 in 2018. Recovery rate increased from 26.5 per cent in 2018 to 71.6 per cent in 2019. The Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 was introduced in the Lok Sabha on 12th of this month.

 

During the last three years more than 1,25,000 companies have been incorporated every year in the country in this manner, as compared to 50-60,000 companies in earlier years. Corporate Affairs Ministry has released the National Guidelines on Responsible Business Conduct.