May 2nd, 2017
Last month, the Income Tax Department had tied up with the Ministry of Corporate Affairs (MCA), to issue a Permanent Account Number (PAN) and a Tax Deduction Account Number (TAN) within a day to improve ease of doing business in India.
The government has been pushing to simplify incorporation of businesses, thus has laid down other reforms as well in this regard which include – minimum paid-up capital not required, company seal made optional, and launch of a Simplified Proforma for Incorporating Company Electronically (SPICe).
As per MCA, these reforms have helped reduce the procedures for starting a business.
Five procedures for starting a business are now integrated and can be done simultaneously in one step. Using the newly launched integrated e-Form SPICe, stakeholders can apply for Company Name, Company Incorporation, DIN of the directors, PAN and TAN for the newly incorporated company, and avail all five services simultaneously.
The fee for incorporation (of the integrated e-Form SPICe /INC-32) has been reduced from Rs 2000 to Rs 500.
According to government figures, during the financial year 2016-17 (i.e., from 1st April, 2016 to 31st March, 2017), a total of 97,840 companies were registered with collective authorized capital of Rs. 31,284.74 crore.
Maharashtra had 17,507 (17.89%) newly registered companies, followed by Delhi with 16,025(16.38%), and Karnataka with 8,902 (9.10 %) companies.
In March 2017 alone, a total of 11,293 companies were registered with collective authorized capital of Rs. 4,546.11 crore.
The Government data further claims that ‘more than 90% applications are being approved within one working day.’
This comes after the World Bank’s 2017 ranking which placed India at 130 amongst 190 countries in ease of doing the business index.
The Logical Indian welcomes this move by the Ministry of Corporate Affairs and we hope that it boosts start-ups in the country.