Time To Get Clearances Cut To 166 Days
Companies wanting to set up new business in India will have far fewer procedures to go through than before. The ministries of industry, labour, company affairs and finance have worked together on new systems to reduce time taken to get clearances from 305 days to 166.
Businesses will also be able to avoid some 120 procedures that they currently go through to meet the requirements of labour, land and revenue departments.
The Centre's attempt is to reduce time taken during a company's registration, approval of the memorandum and articles of association, registration under the Shops and Establishment Act, registration for VAT, establishing the employees provident fund and allotment of PAN and TAN, among other procedures.
This action follows a World Bank series of surveys that ranks India low as regards the ease of doing business. The trigger for the government was the annual World Bank reports - 2006 and 2007 - which put India at a measly 134 among 175 countries.
The Centre set up a committee of secretaries (CoS) to go into the issue. It studied procedures adopted and time taken by ministries concerned in giving clearances. After an elaborate exercise, some new models have been adopted to cut both time taken and procedures. The cabinet secretary will be apprised of the new models this week. The small-scale industry ministry has also initiated faster procedures to help closure of SMEs that are not registered under the Companies Act 1956.
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