Ease of doing business in India

1. EASE OF DOING BUSINESS IN INDIA
Goingbeyond Efficiency, presentsquantitative indicatorsonbusinessregulationsandthe protection
of property rights that can be compared across 189 economies—from Afghanistan to Zimbabwe—
and overtime.These regulationsaffects11 areasof the life of a business. Doing business measures
all these regulations. Ten of these areas are included in this year’s ranking on the ease of doing
business: starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders,
enforcingcontractsand resolvinginsolvency. Besides, these 10 areas one more area labour market
regulation which is also measured, and which is not included in this year’s ranking.
Starting a Business Methodology
To start up and formally
operate an industrial or
commercial business, doing
business records all
procedures officially
required,orcommonly done
in practice for an
entrepreneur and also as
well as the time and cost to
complete these procedures
and the paid-in minimum
capital requirement (As
shown in figure 1). These procedures include obtaining all necessary licenses and permits and
completinganyrequirednotifications,verifications or inscriptions for the company and employees
with relevant authorities.
The rankingof economiesonthe ease of starting a business
isdeterminedbysortingtheirdistancetofrontierscores for
starting a business. These scores are the simple average of
the distance to frontier scores for each of the component
indicators (As shown in figure 2). The distance to frontier
measure illustrates the distance of an economy to the
“frontier”whichisderived from the most efficient practice
or highest score achieved on each indicator.
A detailed list of procedures is developed, along with the
time andcost to complywitheach procedure under normal
circumstances and the paid-in minimum capital
requirement, afterastudyof laws, regulations and publicly
available information on business entry. Subsequently, local incorporation lawyers, notaries and
government officials complete and verify the data.

2. Business Credit
The business needs money to start. So, in order to facilitate poor people with money ,
BUSINESS CREDIT OPTION IS AVAILABLE. Many banks are providing business loans at an
attractive rate. Further, RBI has continued to take necessary steps for strengthening the
credit environment in India. Thanks to the creation and expansion of a national credit
bureau offering credit scores and coverage through which a small business in India is likely
to get credit and hire more workers." Prime Minister of India, in September, had said that
India's ranking could be improved to the 50th position by making government regulations
easier. India is ranked 36th with respect to 'getting credit' category as compared to 34th
place in last year
Protecting minority investors
"India strengthened minority investor protections by requiring greater disclosure of conflicts
of interest by Board members. India is ahead of the US, Japan, France and Germany when it
comes to protecting minority investors and is ranked as 7th best country in protecting
minority investors. In Companies Act, 2013 many provisions regarding the protection of
interest of the minority shareholders like class action suit has been included.
Trading cross border
How much time, how many documents and what cost to export and import by sea
transport?
Doing Business measures the time and cost associated with exporting and importing
excluding tariffs by sea transport. All documents needed by the trader to export or import
the goods across the border are recorded. Amongst Trading across Borders’ India ranks on
126.

3. After issue of DGFT’s Notification only three documents each would be mandatory for
export and import as two documents (Packing List and Commercial Invoice) required by
Customs have been merged into one document, whereas one document required by RBI
(Foreign Exchange Control Forms – SDF for exports and A-1 for imports) and one document
required by Ministry of Shipping (Terminal Handling Receipt) earlier, have now been
dispensed with. ‘Cargo Release Order’ is not a mandatory document required by any
regulatory agency, but is a commercial document issued by the Shipping line to the
concerned importer. As regards, ‘Technical Standard Certificate’/ ‘Certified Engineer’s
Report’, ‘Product manual’ and ‘Inspection report’, these documents are required in specific
cases/products/tariff lines only and are not mandatory for all products.
Formation 0f Company becomes easy
Now, a company can be incorporate just by filing only one form i.e e-form INC 29, there is
no need to file separate form for each procedure.INC-29 gives a fast track procedure for
registering any company in India. To simplify and fast track the procedure for company
registration in India, the Ministry of Corporate Affairs (MCA) has introduced Form INC-29 –
Integrated Incorporation Form. Form INC-29 Company Registration has merged the process
of getting Director Identification Number (DIN), Name Approval and Incorporation
application into one single process – thereby significantly reducing the time taken to start a
company in India. The INC-29 form can be accessed through
http://www.mca.gov.in/MinistryV2/Download_eForm_choose.html.
Earlier 8 forms had to be filled for getting the company registered. As the entire process of
incorporation is in a single form, correct filing could mean an approval in 48 hours, that is
what government has claimed. If the form is rejected then you can apply for refund through
Refund Form. Also, one can apply for PAN- Permanent Account Number and Tax Deduction
Account Number-TAN.
INC-29 will provide following services through a single e-form:
 Allotment of DIN-Director Identification Number
 Name of a company
 Incorporation of a company
Corporate Tax
Total tax rate estimated at 61.7% in India, compared to 41.3% for OECD countries, India has
been placed 156th. In this regard, Corporate tax will be reduced from 30% to 25% in a
phased manner.

4. Number of steps of procedure to apply for electricity connections has been reduced by
Maharashtra and Delhi government.
Conclusion
Significant improvements have been made in regulatory environment through deregulation,
delicensing and simplification of procedures. Government is also in process to replace
around 35 labour laws with 3 new labour laws. Continuous efforts is being made to
introduce the online system based work for the approvals to speed up the approval process
and have transparency in the working of the government departments.
Best regards,
Prince Kumar | Associate
Proglobal Corp
Address: 46A, 1st
Floor, Amar Plaza, IP Extension, Delhi-110092
Contact: 011-43558440 | Email: proglobalcorp@gmail.com
www.proglobalcorp.com