The Hindu Business Line : Ministry to simplify process for company incorporation

The Ministry of Company Affairs is looking at further simplifying the entire procedure that is expected to compress the existing registration process.

According to the Minister for State (Independent Charge) for Company Affairs, Mr Prem Chand Gupta, the Ministry has already taken steps to simplify the process of incorporation and registration of a company.

Further, the Citizen's Charter of the Ministry also clearly lays out the timeframe for following such procedure by the designated offices.

Recently, a section of non-resident Indian businessmen community had met the Minister and expressed concerns on the lengthy process of incorporation and registration of a company in India. To register a company in countries like the US and Singapore takes only a few hours, they said.

Brushing aside such concerns, the Minister said that, "This is a misconception. The process has been made simple for incorporating a company in India. Further, the Ministry has also addressed the issue in the Concept Paper for revamped company law."

Besides, once the DCA-21 is implemented, the entire process will be further simplified with the introduction of e-governance that would allow on-line registration of a company.

According to experts, normally it takes seven to 10 days to incorporate and register a company here.

"If the documents are in order a company can be easily incorporated in a day," Mr Pavan Kumar Vijay, Managing Director, Corporate Professionals (India) Pvt Ltd, said.

The Government has shortened the entire process of incorporating companies to a five-step procedure and if this is followed one can easily cut short the bureaucratic hurdles, he said. Commenting on some of the commonly faced hurdles, Mr Vijay said the first hindrance is the availability of name. "This can be easily resolved with a search on the MCA site. The Ministry site offers the name of the registered companies, hence saving time," he said.

However, to further reduce pressure on Registrar of Companies the Ministry site can also list the names that have been sanctioned to a company, which is yet to be incorporated.

Next hurdle faced by the corporate arises when they do not have proper documents, Mr Vijay said. A tricky case can take as long as three months for registration, however, with the help of professionals this problem can be addressed, he added.

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