Red tapism and delay has always been a synonym for the ‘Indian Bureacracy’. The Babu Culture has cost us heavily specially in the sector of Business and therefore, India has not featured in the top of the table in regards to the ‘Ease of Doing Business’. If certain circumstances persist it could take almost a year to incorporate a company.

As the Modi Government came to power, it promised to ease the way of forming and doing business. By making series of initiatives it wants to make sure that now the registration process becomes much simpler and faster. To materialise this objective, Modi government is to fasten the process of incorporation of company to 24 hours.

Earlier it took around a month or 2 to register a company. Then e-form INC-29 was introduced into the system to incorporate the company in just 48 hours. However, the normal route was still there for those who do not wish to take up the fast-track process of INC-29.

 

In the normal process, the delay of Approval in regards to the name and Incorporation was high. However, this January the Name Approval process simplified and it became centralized. Now, we can expect revert from the Ministry within a day of filing. Though to complete the entire process it still take around 7 days but the save in time for Name Approval helps us to reduce the time frame of the entire incorporation process in a huge way. Infact, accountability is a key to the process where the officials who will scrutinize the document will be accountable for a delay in revert.

 

Currently, the Government is testing a pilot project with the help of few Company Secretaries and the IT Giant Infosys where the whole Incorporation process will take 1 day! Yes, you have read it right. You will be able to get your company registered in 24 hours.

 

The project is on a test and is slated to be launched this June. Once launched, you need not wait for days, let alone months to incorporate your Company. MCA will launch new form specially designed to smoothen the process and register it within a day. We may not have a pre-selected name, but that won’t stop us to get the Memorandum and Articles of association approval by the Ministry. Transparency and answerability will be a crux of this process and hence the IT giant has been looped in to have a clear time frame and impose a penalty for delay.

A short comparison can be-

Feature	Pre- January,2016	From January,2016	June,2016 (Slated to be launched)
Time Frame for the  whole Incorporation process	35-45 days approx	15- 25 days approx	1 day
Scrutinizing Authority	Regional RoC	Name Approval is Centralized , however the Incorporation forms are scrutinized by Regional RoC	Fully Centralized Process
Memorandum and Articles of Association	Has to have the Name of the Company to get the Approval	Has to have the Name of the Company to get the Approval	May not have the Name of the Company to get the Approval
Accountability in part of Scrutinizing Officer in regards to Time Frame to Revert	Almost no Accountability	Accountability in regards to the Name approval	Very High Accountability to complete the Approval within the stipulated time

 

 

With successful implementation of this process will take India to a different level of ease of doing business. In conclusion, it can be said that the incorporation process is slated to face a sea change and for once it is for the better.

Get your company incorporated here.

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