Start your business in less than a day in India
India is all set to enter into an influential set of countries by helping a business start in less than a day in the country. MCA – The Ministry of Corporate Affairs has made the process of incorporation simpler so that within 24 hours promoters can incorporate their companies.
In August 11, 2011, there will be an online certificate that will implement for incorporation. Before this, the officials had to look for the list of names that are available and hence forcing a manual approval of documents. The incorporation would take at most 2 weeks or at least 4 days, considering the individual subjects.
The new procedure will allow the promoters to get the relevant documents and the application checked and certified from a working professional and than the application would be process electronically.
The ministry on July 23 in a circular said “If working professional certifies the e-forms 1, 18, 32 and Memorandum for Association e-form and Article of association, after checking the provided declarations and information which are provided by the subscribers than the electronic process should be continue where the applications are processed digitally and the registrar of companies must issue the digital certificate of incorporation online instantaneously”.
India is constantly ranked at 130 out of the 183 countries for the starting a business in fewer days. As per the report by Doing Business 2010, the top spot has been held by New Zealand, Australia and Canada for Starting a Business faster in the respective countries. It will take not more than 2 days to start a business in Australia and in New Zealand you can start your business in about 1 day. Just opposite to these countries Guinea-Bissau ranked 183rd the worst has 16 procedures to start a business and it will take 213 days to start a business.
The step taken by ministry will ensure a good global growth for India in terms of business and it will help to improve the ranking too. Pawan K Vijay the CEO of Corporate Professionals Pvt Ltd viewed this as a positive sign for India as earlier starting a business in India would take about 8 to 10 days but now 24 hours seems so good and it’s a big boost for the growth of any new business.
But comparing the media and population of New Zealand and India, it seems that it is too fast for a day. We should not forget about the other safety measures before allowing a business to start in India. Nevertheless, we should look this as a positive approach and should stick to it.