New Delhi, December 13: Once upon a time in India, doing or setting a business whether on a large scale or small scale was not at all easy. And the reason was lengthy documental procedures, unstable markets, lack of security etc but today India is amongst those countries where doing a business is very easy and simple due to favourable policies.
Recently, at the end of October this year, taking a big jump forward India has entered into the list of first 100 in the World Bank’s Ease of Doing Business Ranking. It is a straight jump of 30 notches from last year. Not only Prime Minister Narendra Modi but also the world leaders across the globe lauded India’s historic jump of 30 ranks in the World Bank’s Doing Business Report. This was possible only due to PM Modi’s new policy called ‘Make in India’.
However, there was total of nine reforms that helped India jump up 30 places in World Bank's Doing Business Report 2018 are as follows.
Starting a business
- The requirement of Common company seal is eliminated.
- Introduction of form -29 by MCA. With this form three processes such as Name Availability, Director Identification Number and Incorporation of Company are clubbed into one. The company can be registered within 1-2 working days in India.
- The provision is in place for getting PAN and TAN in T+1 day using a digital signature.
- ESIC and EPFO are completely online with no physical touch point for registration or document submission.
Dealing with construction permits
- Municipal Corporations of Delhi, as well as Municipal Corporation of Greater Mumbai, have introduced fast track approval system for issuing building permits with features such as Common application form, provision of using digital signature and online scrutiny of building plans.
- Delhi has a uniform building bye laws, 2016 which allows for risk-based classification regimes for different building types. The uniform building bye laws have provision of deemed approval of sanctioning building plans within 30 days.
Trading Across Borders
- The Central Board of Excise and Customs (CBEC) has implemented ‘Indian Customs Single Window Project’ to facilitate trade. Now importers and exporters can electronically lodge their customs clearance documents at a single point only with the customs.
- The number of mandatory documents required by customs for import and export of goods have been reduced to three viz. Bill of Lading, Invoice cum Packing List and Import Declaration.
Enforcing Contracts
- The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015 has been enacted. The Commercial Courts and Appellate Divisions have already been established in Delhi and Bombay High Court.
- National Judicial Data Grid (NJDG), http://njdg.ecourts.gov.in/njdg_public/main.php provides case data including case registration, cause list, case status and orders/judgements of courts across the country and District-wise. NJDG was opened to the general public on 19th September 2015.
Getting Credit
- SARFAESI (Central Registry) Rules, 2011 has been amended. The amendment modifies rule 4 to include additional types of charges, including: "security interest in the immovable property by mortgage other than a deposit of title deeds"; "security interest in hypothecation of plant and machinery, stocks, debt including book debt or receivables"; "security interest in intangible assets, being know-how, patent, copyright, trademark or any other business or commercial right of similar nature"; and "security interest in any under construction residential or commercial building or a part thereof". This amendment allows (Central Registry of Securitization Asset Reconstruction and Security Interest) CERSAI to register these additional charges.
- This amendment will allow uploading of data pertaining to security interests created on all types of properties covered by the definition of property in Section 2(1)(t) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI) i.e. immovable as well as intangible.
Getting Electricity
- In both Delhi and Mumbai, the distribution companies have stipulated that electricity connections will be provided in 15 days and the number of documents required to obtain an electricity connection have been reduced to only 2. Online application for connections above 100 KVA have been made mandatory in Delhi and Mumbai. This will reduce procedures, cost and time taken to obtain an electricity connection significantly.
- In Mumbai, Brihanmumbai Electric Supply and Transport (BEST) has improved its SAIDI by 3% in the period Jun 2015-Mar 2016, and SAIFI by 11% in the same period and Tata power has improved its SAIDI by 2.42 and it’s SAIFI by 2.41.
Registering Property
- In Delhi, all sub-registrar offices have been digitized and sub-registrars' records have been integrated with the Land Records Department and in Maharashtra, all property tax records have been digitized. The digitization of property records will overcome the cumbersome and time-consuming paperwork for registering properties. It will ensure transparency and allow citizens to ascertain the history of transactions in digital mode.
Resolving Insolvency
- The Insolvency and Bankruptcy Code, 2016 is expected to introduce new dimensions in Resolving Insolvency in India. This is India’s first comprehensive legislation in the area of corporate insolvency.
Paying Taxes
- The ESIC has developed a fully online module for electronic return filing with online payment. This has greatly reduced the time to prepare and file returns.
- With the introduction of the e-Verification system, there remains no physical touch point for document submission to Income tax authorities.
MEASURES UNDERWAY
- Integrate processes for obtaining PAN, TAN, ESIC & EPFO registration with the incorporation of a company.
- Increasing the coverage of Credit Registry and Credit Bureau to register at least 70% of the individuals and firms with information on their borrowing history from the last 5 years.
- Simplification in the forms for filing income tax return, VAT return, CST return, EPFO and ESIC return.
- Operationalizing Insolvency and Bankruptcy Code.
Earlier India had always been at 130 to 140 positions in the World Bank’s Ease of Doing Business Ranking. In 2014 the ranking was 142 while in 2015 it was 131 and in 2016 it stood at 130. PM Modi’s Government from 2014 is in constant efforts to make our nation India ‘Sujalam & Sufalam’ in the real sense.