UNIQUE ID REGISTRATION FOR DOING BUSINESS IN INDIA

UNIQUE ID REGISTRATION FOR DOING BUSINESS IN INDIA

The Central government is working with various State governments to introduce a ‘One India’ concept, and is said to be the most ambitious ‘ease of doing business’ initiative so far. Under this concept, ‘One-Form-One-Portal’ model is being followed, which aims to attract more investments by simplifying the processes to an extent where investors will need to fill only a single e-form for investing and doing business anywhere in India. Presently, all firms are required to complete multiple forms at the Central as well as at the State levels, which further gets complicated as different States have different requirements and regulations.

In the initial stage, a draft ‘Common Application Form’ was being circulated among the states for their feedbacks. The Centre is also developing an eBiz project that is basically a government-to-business portal. Various services are offered under the portal (providing firms and investors all kinds of facilities 24×7 online to start, run or close down the business.

In order to provide single-window clearance mechanism at the central level for various entrepreneurs, the government has come up with a plan which uses Permanent Account Number (PAN) as the Business Identification Number (BIN) for companies and firms. This step is taken in order to dispose of the need for separate registration with various authorities (the registrar of companies, the direct and indirect tax wings, and export/import).

Presently, entrepreneurs need to get a Company Identification Number (CIN) for their entities from registrar of companies, after which they need to get PAN from the income tax department and labour identification number. In order to resolve these issues and to make the registration process of entities easy, Amitabh Kant (industrial policy and promotion secretary) called a meeting and recommended to use Unique ID for registration with all central government departments.

eBiz which was conceived as the one-stop shop to get all clearances not only from central authorities but also from state as well as local authorities several years ago is now given the authority to issue Unique ID for all registration. Earlier eBiz was not able to generate the desired results as not even central agencies were fully linked to the portal. The Department of Industrial Policy and Promotion (DIPP) is now taking the initiative to get on board all agencies and their service providers (the private IT companies like TCS) for the project.

But there are quite complications in order to get all the departments on board as the government agencies have pointed out that this entire process will require an overhaul and business process reengineering which would be time consuming and may not result into immediate rollout. Also private entities have been reluctant to ensure compatibility of platforms used by various government departments. DIPP is now finding ways to resolve this and to get all of them on board so that entrepreneurs can start their businesses in India without any hesitations or fear.

Labour Department has been asked to speed up things so that the registration process is completed in a day. However, with each establishment, a subsidiary requires separate registration under various labor laws, the process then becomes time consuming. Issuing BIN will help India to move up the ladder on ease of doing business rankings where it is currently ranked 155th among 189 countries. All the procedures that are required to start a business in India are completed in around 29 days whereas in Organization for Economic Co-operation and Development (OECD) countries the entire process gets completed in eight steps and 15.7 days.

The government aims to move India among top 50 countries on ease of doing business rankings and to achieve this, the government has initiated steps to speed up liquidation and restructuring of companies to make it easier to exit a business.

Author: This blog is written by Mr. Aman Tiwari, a passionate blogger & intern at  Aapka Consultant.

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