New Delhi: In India, for Incorporation of Company Registration, it takes normally five days, but for surprise companies like Wiziwig Learning and Parnasa Mediworld took just one day.Besides these two companies, there were other two companies that were registered in one day as a part of a pilot project that was inaugurated in Delhi by the Ministry of Corporate Affairs.
Thereafter the Pilot project inauguration on Thursday, around 28 company secretaries, some officials, and few executives from Infosys gathered in the Ministry of corporate affairs’ conference room in Capital’s Shastri Bhavan, to discuss a way out to make company registration possible in a day. In this view, the Government is shifting the centralized processing of registration proposals to a new center Manesar which is near Gurgaon, rather than registering companies with the Registrar of Companies(ROC). As this system stabilizes, in the coming week’s incorporation of a company could be done in one day. According to a survey conducted by The World Bank’s Ease of Doing Business rankings last year, the reservation of the company used to take two-seven days and additional five days to complete the Incorporation formalities of the company. According to some officers, if luck is not with you, it may take a year to get the approval of the name.
The Ministry of corporate affairs has cut down the time consumption for company registration and name approval to one working day by introducing new ways and switching to a system that is fully automatic; this has cut down the number of rules from 39 to 26 steps. Hence, from January end the consumption of time has reduced incredibly.
The results have been very positive, data shows approximately the complete processing of 14000 applications in a month, and nearly 70% of the applications cleared in one working day. The remaining 30% get grace time to redo the submission with new names as these names might not be accepted. According to an official, after implementation of this automated system “Everyone would get to know within one working day if their application has been accepted or not. There is zero balance from Tuesdays-Fridays while there may be some additional work on Mondays due to applications filed on Fridays”
The next stage will involve making the incorporation process and the name selection exercise into a one-day exercise. MCA will publish the fresh form that will merge the entire process into one at the end of June. The memorandum of association will be issued even if the pre-selection of the name is not done. The contract has been signed between the ministry and Infosys clearly stating the stipulated timelines which if not met will invite penalty for delays.