The government has claimed that time taken for registration of a company has been cut by 50% due to steps taken by the Ministry of Corporate Affairs.
According to the ministry, the average number of days taken for incorporation of a company has come down significantly from 9.57 days in December 2014 to 4.51 days in November 2015. It is targeting that the average number of days to be further reduced to one to two days for approval in normal cases.
The ministry said in a statement that in the past one year, it has taken a number of steps, and is in the process of further streamlining processes and the regulatory framework, to reduce the overall time taken for incorporating of a company.
The ministry said it has introduced an integrated incorporation form (Form INC29) and started tighter monitoring of Registrar of Companies' (ROCs') performance resulting in faster approvals and lesser number of clarifications being asked from the stakeholders.
It will soon introduce a new version of Form INC29 incorporating suggestions received from the stakeholders allowing up to five directors to be appointed and greater flexibility in proposing a name for a company.
The statement further said rules with regard to reserving and approving of names for companies will also be simplified, and a centralised new process will be introduced soon for time-bound approval of names of companies.