MCA on 69th Republic Day Announces ‘Zero Fee and A Simplified Approach of Business Incorporation’
Initiating speedy growth & republic working of businesses, Ministry of Corporate Affairs (MCA) has recently announced some effective freedom measures for easing commencement needs of new business ideas. On auspicious occasion of 69th Republic Day (26th January 2018), a statement has been made on the official website of MCA Department (mca.gov.in) which aims to gift coming ventures with ‘A Zero Fee and Simplified Approach of Business Incorporation’ to benefit them in saved cost of incorporation & related compliances in future days. These initiatives launched by department majorly focuses on making the incorporation process speedier, simpler & smooth and also aims to reduce the number of activities required for legally starting a business in India.
In last few years, the Ministry of Corporate affairs has been significantly contributing towards Ease of Doing Business, as stated in feedback of top business experts – In implementation of all business initiatives stated by government MCA has given a remarkable input making them reality, like by establishing a Central Registration Centre (CRC) for prompt working on incorporation services, real time issuing of PAN & TAN for businesses in a single simplified online process & bringing down incorporation forms to a Simplified Performa for Incorporating Company Electronically (SPICe) etc.
Also, It is evident from various reports made by leading business experts, that if Government of India stays committed to such business easing reforms it will certainly be able to deliver a ranking to India in top 50 countries list of ‘Ease of Doing Business’ published by World Bank annually .
Celebrating 69th Republic day, the Ministry has yet announced another drive for streamlining and accelerating new business bringing procedures and named it as Government Process Re-Engineering (GPR) . These include –
- Introduction of “RUN – Reserve Unique Name” A Web service for Business name reservations.
- Keeping Zero Fee for companies incorporating having Authorized Capital of upto Rs 10 Lakh ..
- Re-modifying process of allotment of DIN by allotting it with a combined SPICe form at the time of an individual’s appointment as Director (in case he/she doesn’t have a DIN).
With good number of regulatory measures, Ministry of Corporate Affairs has actively contributed to up rank India in Ease of Doing Business, even with these measures also it is expected that India will experience a surge in number of incorporations, but there are still some areas in which the department had to work on, especially with compliances related to registration and incorporation of businesses.