Registration figures more than 1,12,962 companies in FY2024-25 registered upto Nov 30,2024, indicates in a positive development, how well the economy of the nation is expanding. Increase company registration is a tremendous success, reflecting the well and sustained efforts of the government in making the economy conducive for businesses. All of these strategic initiatives brought to the process of making the business, easy as well as inexpensive for new and existing entrepreneurs and corporations, to thrive.
Government Initiatives to Stimulate Business Registration
Over the years, the Indian government has undertaken several initiatives toward making the company registration process swift, fast, and inexpensive. These initiatives have significantly reduced time and cost involved in opening any business in India. Let us discuss some of the initiatives.
1. Central Registration Centre (CRC) to Simplify the Process
The most elementary measure initiated by the Government to ease the incorporation of companies has been the Central Registration Centre inducted on January 22, 2016. It has made the web-registered incorporation process so fast and hassle-free as compared to its erstwhile version.
This process of digitalisation and centralization of practices at CRC has considerably relieved bureaucratic bottle-necks which enabled the entrepreneur to start business without too much delay.
2. Reduced Cost of Incorporation of Business
In that aspect, the Indian Government declared the reforms implemented to make the process of establishing a new venture in the country easier. As part of such efforts can also include that the fees offered have to reduce in terms of the small scale industries.
No fees to companies with an authorized capital of up to INR 15,00,000 Companies with an authorized capital up to INR 15,00,000 are allowed incorporation with no fees. A facility to small business entrepreneurs who want to step into the incorporation without registration fees.
It has streamlined the whole process of registration with forms available under the SPICe (Simplified Proforma for Incorporating a Company Electronically) system which integrates PAN & TAN applications and has an electronic Memorandum of Association and Articles of Association thereby drastically reducing the time and paper required for company registration. The system also involves DIN allotment, EPFO, ESIC, GSTIN, and Professional Tax registrations among others. It saves time and reduces operational costs.
Single SPICe+ Form for all requirements: Rule 38(2) of the Companies (Incorporation) Rules 2014 has introduced the SPICe+ form wherein all necessary registration steps are amalgamated into one form:
This form is available to make a single application of registration of a company along with the appointment of directors to get a company name reserved. Additionally, the form consists of the application for three Directors’ Director Identification Number. This in turn makes things much easier for One Person Companies, Private Companies, Public Companies and Section 8 Companies-non-profit organizations.
3. Amendments to the Companies Act for Easier Compliance
The Government has further amended several provisions of the Companies Act, 2013 to promote ease of doing business in India. The same was brought in the year 2020 to alleviate the compliance burden and de-criminalize specific offenses for businesses, particularly small companies, start-ups, and producer companies.
Ease of Doing Business is Enhanced: The amendments streamline the regulatory procedures making it easy for a company to be in compliance with the given requirements, improving the business climate of India at large.
Decriminalization: Offenses: Decriminalization has done away with the criminal punishment of various offenses that bring pressure onto business, allowing a less pressure-tinged entrepreneurial atmosphere to develop.
4. Exceptions with Certain Kinds of Companies
Government has also introduced provisions, wherein exemption has been granted to different kinds of companies from different sections of the Companies Act. Some such kinds of exemptions have been introduced by Government are given here below:
Private Companies
Government Companies
Charitable Companies
Nidhi Companies
IFSC (International Financial Services Centre) Companies incorporated in GIFT City
The purpose of these exemptions is to lighten the compliance burden from businesses that operate in certain sectors so as to promote a more facilitative environment for entrepreneurship.
Key Takeaways: A Thriving Business Environment in India
The Indian Government has taken pro-active steps that have been able to bring in a suitable environment for business growth. It is amply clear that the initiatives have begun to pay well if over 1 lakh companies have registered in merely a few months of the current financial year. Cost reductions, streamlined procedures, and legal reforms are making India increasingly more attractive to entrepreneurs.
Conclusion: Emerging Business Possibilities of the Future
This effort of the Government has finally started yielding good returns now, as during the first months of FY 2024-25, more than 1,12,962 have registered here. This will further enhance the ease of doing business in the country and more avenues will open up for entrepreneurs, both domestic and international.
This would further cement the process of process re-engineering and cost-cutting measures. India would, in this way, continue to march strong towards its route of becoming an even more alluring business and investment destination in the coming years.
Refer :
PIB, Link to article
Also read : Electric Vehicle Sector in India Poised for $40 Billion Investment Surge by 2030