Company registration takes half the time now, claims govt
11 December 2015
Time taken for registration of a company has been cut by 50 per cent as a part of the government's 'ease-of-doing business', the ministry of corporate affairs stated in a release today. The ministry said it will soon introduce a new version of Form INC29 incorporating suggestions received from the stakeholders allowing up to 5 directors to be appointed and greater flexibility in proposing a name for a company.
The release said the ministry of corporate affairs has, during the past one year, taken a number of steps, and is in the process of further streamlining processes and the regulatory framework, to reduce the overall time taken for incorporating of a company as a part of the 'ease-of-doing business' efforts.
The introduction of an integrated incorporation Form INC29 and tighter monitoring performance of Registrars of Companies (RoC) has resulted in faster approvals and lesser number of clarifications being asked from the stakeholders.
Besides, the ministry said, it will soon introduce a new version of Form INC29 incorporating suggestions received from the stakeholders allowing up to 5 directors to be appointed and greater flexibility in proposing a name for a company.
This will allow an even more wider use of this integrated form, which is already gaining in popularity.
The rules with regard to reserving and approving of names for companies are also being simplified, and a new centralised process will be introduced soon for strictly time bound approval of names for companies.
These measures, according to the ministry, have helped to bring down the average number of days taken for incorporation of a company significantly from 9.57 days in December 2014 to 4.51 days in November 2015.
The ministry said it is targeting to further bring down the average number of days to one to two days for approval in normal cases. The ministry has sought feedback from companies and professionals to countercheck the system introduced.