EASE OF DOING BUSINESS
(Making it simpler and easier to do business in India)

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  • India’s rank in Doing Business Report, 2015 was 142 among 189 countrues, which improved to 130 in the Doing Business Report, 2016. Government of India has emphasized on the importance of ‘Ease of Doing Business’ and it is a major pillar of ‘Make in India’ initiative. Some of the reforms undertaken by the Government in last two years have been elaborated below:
  • HIGHLIGHTS

    Requirement of minimum paid up capital and common seal under the Companies Act 2013 has been done away with

    Registration for Permanent Account Number (PAN), Tax Deduction Account Number (TAN), EPFO (Employees' Provident Fund Organization) and ESIC (Employee's State Insurance Corporation) and incorporation of company can be done through a single form on eBiz portal

    Time taken for obtaining PAN and TAN on eBiz portal has been brought down to T+1 days

    Provision made for applying for company name and Director Identification Number (DIN) at the time of incorporation with single Form-INC29

    Online and real time registration of ESIC and EPFO has been introduced

    Provision for online payment of EPFO and ESIC contributions has been introduced

    Requirement of bank account for registration with EPFO and ESIC has been made optional

    Central Registry Rules have been amended to record security interests of all types of property

    Number of documents required for imports and exports have been reduced to three

    All documents for export and import to be submitted electronically with digital signatures i.e. no physical submission of document

    Custom ICEGATE Portal has been integrated with Food Safety and Standards Authority of India (FSSAI), Animal & Plant Quarantine, Drug Controller & Wildlife Control Bureau for imports

    Shram Suvidha Portal launched to issue unique Labour Identification Number (LIN), submission of common electronic returns under 8 Labour Acts and facilitate risk based inspections

    Insolvency and Bankruptcy Code with provision of easy and faster exit, passed by the Parliament

    SARFAESI (Central Registry) Rules have been extended to register extended security interests

  • ACHIEVEMENTS IN DELHI

    Unified building Bye-laws have been notified

    Online registration of Value Added Tax (VAT) with real-time Tax Identification Number (TIN) allotment has been introduced

    Commercial divisions and Appellate divisions in Delhi High Court have been established

    Municipal Corporations have introduced fast track approval system for building permits with features such as:
    – Common application form
    – Use of digital signature for filing application and issue of permits
    – Online transfer of application and receipt of NOC
    – Online system has been integrated with Airport Authority of India (AAI, Delhi Urban Arts Commission (DUAC), Delhi Metro Rail Corporation (DMRC) & National Monument Authority (NMA)

    DERC has rationalized LT and HT tariff thereby allowing LT connections upto 150 KVA

    Delhi has implemented fix charges for various categories of loads, thereby removing the need for an estimate.

    Registration of Delhi VAT is being donewithout the need for field verification by VAT inspector through Delhi VAT Sewa App.

    Online application for connections above 100KVA have been made mandatory

  • ACHIEVEMENTS IN MUMBAI

    Requirement of inspection has been removed to make registration of Shops and Establishments real-time

    Commercial divisions and appellate divisions have been established in Bombay High Court

    VAT and Profession tax registration has been integrated into a single process

    Maharashtra has implemented fix charges for various categories of loads, thereby removing the need for an estimate.

    Online application for connections above 100KVA made mandatory

    Municipal Corporation of Greater Mumbai has introduced fast track approval system for building permits with features such as:
    – Common application form
    – Online transfer of application and receipt of NOC
    – Online system has been integrated with AAI & NMA

    Permission for removal of Trees has been integrated with the Municipal Corporation of Greater Mumbai (MCGM) single window application system.

    Site inspection for construction permits has been minimized by way of self- certification and introducing third party certification. During construction, submission of video clips by architects has been introduced in online Auto DCR system.

    VAT Registration Certificate is issued within 1 working day (24 hours).

    AutoCAD based software to scrutinize building plans has been implemented.

    MCGM has implemented a risk based assessment framework with risk parameters in order to enable fast track approval for buildings.

    Cost and time for obtaining construction permit has been reduced by 79.6% and 132 days, respectively.

    Property Tax can be paid through mobile app which can be downloaded through apps.mgov.gov.in.

    Brihanmumbai Electricity Supply and Transport (BEST) has improved its System Average Interruption Duration Index (SAIDI) by 3% and its System Average Interruption Frequency Index (SAIFI) by 11% in the period June, 2015-March, 2016.

  • STARTING A BUSINESS MADE SIMPLER AND EASIER

    The Government of India has, in collaboration with the State Governments of Delhi and Maharashtra, undertaken significant reform measures to improve our rank in Starting a Business parameter. The rank has improved from 164 to 155 over the last one year

    Registration with ESIC and EPFO has been made real-time by eliminating all physical touch-points. The requirement of opening a bank account has been removed as a mandatory condition for registration with ESIC and EPFO. The system of issuing PAN and TAN has been put in place together within T+1 days on an application using digital signatures on the ebiz platform. PAN and TAN numbers can be issued on CBDT’s portal within T+3 days without digital signature Maharashtra state has combined the process of registration with VAT and profession tax The registration will now be granted in 24 hours and the same has been adopted by Delhi VAT

    Form INC 29 has been launched by Ministry of Corporate Affairs to avail 3 pre-registration services viz. ‘Name Availability’, ‘Director Identification Number’ and ‘incorporation of company’ with one form and one payment

    The above significant changes will scale down the number of procedures and days taken to start a business which will slash the costs involved as well.

  • REDUCTION OF PROCESSES FOR CONSTRUCTION PERMITS

    India’s rank under Construction Permit parameter has improved marginally to 183th in 2016 from 184th in 2015. In the states of Maharashtra and Delhi, notable reforms have been undertaken to ease the processes involved and reduce the time taken for grant of construction permit

    Municipal Corporation of Greater Mumbai (MCGM) has completed the process of single window approval by integrating with internal departments as well as, AAI and NMA through a common application form. NoCs from Maharashtra Industrial Development Corporation (MIDC), Director of Industries, Collector and Maharashtra Housing and Area Development Authority (MHADA) have been eliminated. MCGM has also introduced digital signing of building permit application, as well as sanctioned maps, thereby eliminating need of physical submission of documents. The manual application for grant of construction permits has been discontinued

    Municipal Corporations of Delhi have completed the process of single window approval by integrating with internal departments as well as DMRC, Delhi Fire Services, DUAC, AAI and NMA through a common application form. NOC from Labor Department of Delhi Government is not required if no manufacturing activity is undertaken in the building. It has also introduced digital signing of building permit application, as well as sanctioned maps, thereby eliminating the need of physical submission of documents. Manual submission of application for grant of construction permits has been done away with. Ministry of Urban Development and Delhi Development Authority (DDA) have notified the Unified building Bye-laws. Color coded maps have been developed by AAI, NMA, DUAC and DMRC to enable applicants to determine whether NOC is required for the land for which permission is applied for

    These reforms will remarkably reduce compliance burden by reducing the processes and time taken in grant of construction permit.

  • GETTING ELECTRICITY MADE HASSLE-FREE

    This parameter witnessed a significant improvement in ranking from 99th in 2015 to 70th in 2016. To make further progress various reforms have been undertaken

    Maharashtra and Delhi have implemented fixed charges for various categories of loads, thereby removing the need for an estimate

    Delhi and Maharashtra have made online applications for connections above 100 KVA mandatory

    Delhi Electricity Regulatory Commission has reduced the number of documents required for getting an electricity connection from eight to two:
    – Identity proof
    – Proof of Ownership/Occupancy of Premises

  • IMPORT AND EXPORT PROCEDURES MADE EASIER

    The Central Board of Excise and Customs has implemented Single Window Interface for Facilitating Trade on ICEGATE portal by integrating FSSAI, Animal Quarantine, Plant Quarantine, Drug Controller and Wildlife Control Bureau for imports

    Customs Risk Management System has been extended to other regulatory agencies to ensure risk-based inspections

    168 low phytosanitary risk agricultural commodities listed under Schedule VII of the Plant Quarantine Order, 2003 have been identified for 5% random inspection

    Mandatory testing of imports from countries where azo dye has not been banned has been reduced from 100% to 25%

    TEU volume limit for direct delivery consignments has been removed

    Terminal handling receipts have been replaced by web-based e-form 13 at JNPT, Gateway Terminals India and Nhava Sheva International Container Terminal

    Filing of import & export declarations and manifests has been made online with digital signatures

    An electronic messaging system between shipping lines and custodians for electronic delivery order has been introduced

    Customs Clearance Facilitation Committee has been set up at every major customs seaport and airport for speedy clearance of import & export of goods

    24x7 customs clearance facilities have been extended to 19 seaports and 17 air cargo complexes

    These steps will improve the import and export regulatory environment significantly

  • EASIER CONTRACT ENFORCEMENT

    The Arbitration and Conciliation Act has been amended to reduce the time taken in arbitration proceedings and grounds on which an award may be challenged

    Commercial Appellate Division Bench and Commercial Division Benches are functioning in Bombay High Court and Delhi High Court

  • DIGITIZATION PROCESS FOR REGISTERING PROPERTY

    In Delhi, all sub-registrar offices have been digitized and records have been integrated with the Land Records Department

    In Maharashtra, all property tax records have been digitized

  • GETTING CREDIT

    SARFAESI (Central Registry) Rules have been extended to allow uploading of data pertaining to security interests created on all types of property

  • ENVIRONMENTAL CLEARANCES MADE EASIER

    No clearance is required for 36 white industries

    Mine prospecting projects are exempted from requirement of compensatory afforestation and Forest Rights Act certificate for grant of forest clearance

    No site inspection is required for mine prospecting projects on forest land for less than 100 ha. for construction of new roads/drilling of boreholes/sample collection pits

    Industrial sheds and educational institutions have been exempted from Environmental Clearance

    Validity of Environmental Clearance has been increased from five to seven years

    Online submission of applications for environment/ forest/wildlife clearances for transparent and expeditious decision-making

    NOC/Consent to Establish is not required for getting an industrial electricity connection for setting up new industries and projects

  • EBiz PLATFORM

    One-stop access for investors to know about the licenses/approvals required from government agencies

    User-friendly features such as payment through netbanking, credit & debit cards, status tracking, SMS alerts and help desk support have been enabled

    Composite Application Form and one-time payment designed for obtaining approvals from multiple Ministries/Departments, including the Ministry of Corporate Affairs, CBDT, Ministry of Labour & Employment - ESIC & EPFO

    Investors can apply for 20 Central Government services;14 Andhra Pradesh, 14 Odisha and 2 Delhi State Government services, 24x7 through the eBiz portal

  • CENTRAL GOVERNMENT SERVICES INTEGRATED
    S. No. Ministry/ Dept. Name Service Name
    1. Employee’s State Insurance Corporation Employer Registration
    2. Department of Industrial Policy and Promotion Industrial License
    3. Department of Industrial Policy and Promotion Industrial Entrepreneur Memorandum
    4. Ministry of Corporate Affairs Name Availability
    5. Ministry of Corporate Affairs Director Identification Number
    6. Ministry of Corporate Affairs Certificate of Incorporation
    7. Ministry of Corporate Affairs Commencement of Business 1
    8. Central Board of Direct Taxes Issue of Permanent Account Number (PAN)
    9. Central Board of Direct Taxes Issue of Tax Deduction Account Number (TAN)
    10. Reserve Bank of India Advanced Foreign Remittance (AFR)
    11. Reserve Bank of India Foreign Collaboration-General Permission Route (FC-GPR)
    12. Employees’ Provident Fund Organization Employer Registration
    13. Petroleum and Explosives Safety Organization Issue of Explosive License
    14. Directorate General of Foreign Trade Importer Exporter Code License
    15. Reserve Bank of India Foreign Currency- Transfer of Shares 2
    16. Department of Heavy Industry (DHI) Issue of custom duty concession certificate to entrepreneurs under project import scheme
    17. Central Board of Direct Taxes (CBDT) Changes or correction in PAN data
    18. Ministry of Labour and Employment (MoL&E) Registration under the Contract Labour Act, 1970
    19. Ministry of Labour and Employment (MoL&E) Registration under the Building and other construction workers Act, 1996
    20. Ministry of Labour and Employment (MoL&E) Registration under the Inter-State Migrant Workmen Act, 1979

    1. Withdrawn from eBiz Portal w.e.f 15.07.2015 pursuant to the Companies (Amendment) Act 2015.
    2. FC-TRS an additional service integrated and launched with eBiz portal w.e.f 24.08.2015.

  • STATE GOVERNMENT SERVICES COMPLETED

    ANDHRA PRADESH (14 SERVICES)

    S.No. Department Name Service Name
    1. AP-Ground Water Department Permission to draw Ground Water
    2. AP-Department of Factories Approvals of plans from Factories Department
    3. AP-Department of Factories Factories License
    4. AP-Department of Factories Annual Filing under Factories Act
    5. AP-Fire Department NOC from Fire Services Department
    6. AP-Department of Industries Industrial Incentives(Power)
    7. AP-Department of Industries Industrial Incentives (VAT)
    8. AP-Department of Industries Allotment of Scarce raw materials
    9. AP-Department of Industries MSME Registration
    10. AP-Department of Industries NOC Acknowledgement from GM, DIC for MSME
    11. AP-Department of Drug Controller License for manufacturing Bulk Drugs and Formulations
    12. AP - Department of Town & Country Planning Permission from TCP for Site and Building
    13. AP-Commercial Taxes Department VAT Registration
    14. AP-Commercial Taxes Department Central Sales Tax (CST) Registration

    Odisha (14 Services)

    S.No. Department Name Service Name
    1. Industries Department, Odisha Project Evaluation cum Allotment of Land
    2. Directorate of Factories & Boilers Odisha Registration under Boilers Act
    3. Labour Directorate, Odisha Registration under Shops and Establishment Act2
    4. Labour Directorate, Odisha Registration of Establishment Employing Contract Labour
    5. Water Resources Department, Odisha Permission to draw Water for Industries-Ground Water & Surface Water
    6. Directorate of Factories & Boilers, Odisha Approvals of Plan under Factories Act,1948
    7. Department of Energy, Odisha New Power Connection
    8. Housing and Urban Development Department, Odisha Permission for Site and Building
    9. Directorate of Factories & Boilers, Odisha Factories License under Factories Act,1948
    10. Housing and Urban Development Department, Odisha Completion cum Occupancy Certificate
    11. Commercial Taxes Organisation, Odisha VAT Registration
    12. Commercial Taxes Organisation, Odisha CST Registration
    13. Odisha State Pollution Control Board Consent to Establish
    14. Odisha State Pollution Control Board Consent to Operate

    DELHI (2 SERVICES)

    S.No. Department Name Service Name
    1. Factories Department Factory Filling
    2. BYPL(BSES Yamuna Power Limited) New Power Connection
  • COMPOSITE APPLICATION FORMS INTEGRATED

    List of joined-up(L3) services

    S.No. Department Name Service Name
    1. INC-29 with 7 services viz., Name Availability (MCA), Director Identification Number (MCA), Certificate of Incorporation (MCA), PAN (CBDT), TAN (CBDT), Employer registration of EPFO and ESIC Ministry of Corporate Affairs, CBDT, EPFO & ESIC
    2. NC-7 with 5 services viz., Certificate of Incorporation (MCA), PAN (CBDT), TAN (CBDT), Employer registration of EPFO and ESIC, Ministry of Corporate Affairs, CBDT, EPFO & ESIC
    2. 5 registration services under Employer registration under EPFO and ESIC Act, Contract labour Act, Building and other Construction Workers Act, and Inter-state Migrant Workmen Act Ministry of Labour & Employment

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