ABSTRACT
India is amongst the five most rapidly improving economies globally, resulting from several reforms started under the Make in India campaign. There has been a substantial shift in the attitude towards governance as the government has implemented various reforms with the objective of improving the country’s business climate. An environment that is favorable to business is a prerequisite for the growth of a country. Starting a business in India was an intricate and complex procedure before implementing the Make in India campaign. After the campaign, things have become much easier for the people who are beginning their venture, and it has also become much simpler for people who are interested in having their firm. The requirements of having common seal and minimum paid up capital for company incorporation are no longer there, serving as a boon for persons who want to set up a business. This paper deals with the changes that have made the incorporation of a company simpler in the country and the changes brought in by certain amendments for ease of doing business in India.
Introduction and Research Methodology
The significant contribution of the Government to making it easier for the incorporation of a company was brought in 2015, where the incorporation took place by filing Form INC-29 as against five forms filled before the implementation of the Integrated Incorporation form. The Ministry of Corporate Affairs took a step forward in Government Process Re- Engineering and introduced the Simplified Performa Incorporating Company Electronically (SPICe) e-form in 2016. SPICe has become the sole form for incorporation of a company in India. SPICe can aid in incorporating a company with a single application for allotment of DIN and reservation of name and the like. It enables fast-track incorporation of a corporation in India. The information provided under SPICe is more than in the preceding Form INC-29. It not only fulfills the purpose of 5 forms at one time but also enables AOA and MOA filing. Parliament has passed the Companies Amendment Bill, 2018 for improvement in the mechanism of the ease of doing business in India. The Bill aims to start a transparent and technology-derived mechanism on an online platform.[1] There have been some significant changes introduced in the procedure for incorporation of a company, and the Ministry of Corporate Affairs has brought in certain amendments to promote the ease of doing business in India. This paper will seek to analyze the amendments made to the existing procedure of incorporation of a company and point out the benefits being availed by the different forms of business as meeting compliances has been made easier and there has been the growth in the number of Companies incorporated in India. With the passing of the Companies Act, 2013, which was brought into force in 2014, the fifty-eight-year-old Companies Act, 1956 was replaced.[2] Within a few months of the Companies Act, 2013 being passed, the Government made certain changes to the statute to make it simpler to do business. These amendments consisted of omitting the necessity for minimum paid up share capital, and making the common seal optional.[3]
This paper has been written using Secondary Data. The data has been collected from published books, journals, research papers, daily newspapers, the Internet, and official statistical documents.
[1] Lok Sabha passes Companies Amendment Bill for Ease of Doing Business, available at https://www.business-standard.com/article/news-ians/lok -sabha-passes -companies-amendment bill-for-ease-of doing-business-11901-4-1180_1.html
[2] Cabinet Clears Changes to Companies Act for Ease of Doing Business, available at https://www.ndtv.com/business/cabinet-clears-change-to-companies-act-for-ease-of-doing-business-707399
[3] ibid