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That the economic growth of any country relies on how easy it is for aspirants to start their venture is a well-documented fact. Had it not been the founding of new industrial units in the then-Europe, industrial revolution, as we know it today, would not have been the same. New businesses give rise to new products and services, add to competition in the market, thereby driving efficiency and bringing down prices, and in this process, they generate what any country needs to be socially stable- jobs for youth. In this light, it is important that India becomes a business-friendly nation, not in terms of favourable tax rates and labour laws alone, but also with respect to providing a red carpet to new businesses.
The government seems to have heeded the call and in the near future, new businesses will not have to go through tedious paperwork to register. It has been approved that for a business to be set up, only a couple of forms will do the needful and no separate forms will have to be filled for every separate requirement.
What does this mean?
Until now, a new enterprise had to fill various individual forms to apply for GST registration, PAN, TAN, DIN and such other requirements. In fact, applying for GST registration of business is no mean task. Anyone who has gone through the process can tell you that only a professional can correctly upload all details. That aside, different applications go to different authorities and since they act separately on requests received, you may have your PAN number done in no time but application for your Director Identification Number may remain pending, thereby delaying the entire process of business registration.
But no longer will this be the case. India has decided to further improve the country’s ranking in the Ease of Doing Business Index, where we climbed 14 ranks in the last index and clinched the 63rd spot. But if one is to read between the lines and analyse the complete picture, India ranks 136th on the ease of starting a business parameter. The World Bank ranking reveals that we have to undertake groundbreaking reforms if we are to better our ranking in the next index.
And it’s almost done
News reports confirm that the country is set to replace the old model of applying for various requirements separately by having only two forms that will do the needful for applicants. These two forms have been named ‘Spice Plus’ and ‘Agile Pro’.Most of the requirements for registering a business, which includes reservation of business name and registration for taxes, can be fulfilled by filling two forms. The best part is that the forms are digitally accessible and can be completed and filed without having to physically visit any government office. In fact, three government ministries – corporate affairs, labour and finance – have joined hands to streamline the process of registering a business.
Under the new structure that will soon be replacing the present one, businesses will be registering with Employees Provident Fund Organisation and State Insurance Corporation at the same time when starting the business, instead of doing so on a later date. The two forms, as mentioned above, will serve as the only requirements to register for GST, EPFO, ESIC, PAN, TAN and other formalities. The complete list of services that can be availed using these two forms and the exact design and guidelines to fill these can be expected in next few weeks.
This would lead to bidding farewell to the present tedious practice of first acquiring DIN, then creating an account on the MCA web portal, checking for availability of business name, getting digital signature certificate and filling different forms for details ranging from particulars of directors to registered address of the business.
The introduction of just two forms that will replace a plethora of old forms will surely boost India’s ranking in the World Bank’s Ease of Doing Business Index. Now that the registration of business is set to become easier, the economic downturn that our country is witnessing can hopefully be reversed. New businesses will help kick-starting economic activity, thereby leading to job creation and better spending capacity of people. Starting a business will now not appear as a burden to the entrepreneur.
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