As a measure for “Ease of doing business in India” the Ministry of Corporate Affairs has introduced various changes in the past one year in regulatory framework and procedural aspects. The idea is to streamline processes and minimise the time taken for incorporation of a company by introduction of integrated Form INC29 and strict monitoring of Registrar of Companies (ROC’s).
They will soon introduce a new version of Form INC29 by incorporating suggestions received from stakeholders, allowing the appointment of up to 5 directors and flexibility in proposal of the company’s name.
A new centralised process will be introduced to enforce a strict time bound approval of incorporation and company name by the Indian government.
As a result of all these measures, the average number of days for company incorporation has been significantly reduced by 50% from 9.57 days to 4.51 days. The ideal target is one to two days approval in normal cases.