MCA took many initiatives in 2019 for providing Ease of Doing Business

Speed Post News Network

New Delhi : In pursuance of objective of providing greater “ Ease of Doing Business” to all stakeholders, bring about greater transparency in corporate structure and fostering better Corporate compliance to enhance the efficiency of the processes under Companies Act ,2013 , the Ministry of Corporate Affairs ( MCA) has taken several landmark initiatives / decisions during January-November ,2019.

India has improved its ranking on the World Bank’s “Doing Business” 2020 report. As per the report, India has moved up 14 positions to 63rd position compared to 77th position in 2018. India’s leap of 14 ranks in the Ease of Doing Business ranking is significant considering that there has been continuous improvement since 2015 and for the third consecutive year India is amongst the top 10 improvers.

Ministry of Corporate Affairs has contributed towards insolvency resolution. As per the latest Report in the Resolving Insolvency Index, India’s ranking jumped 56 places to 52 in 2019 from 108 in 2018. Recovery rate increased from 26.5% in 2018 to 71.6% in 2019 and time taken in recovery improved from 4.3 years in 2018 to 1.6 years in 2019.

A number of steps to provide Ease of Doing Business to law abiding corporates have been implemented by the Ministry in the recent past. Integrated Incorporation Form – Simplified Proforma for Incorporating Company Electronically (SPICe) has been introduced which extends 8 services (CIN, PAN, TIN, DIN, Name, EPFO, ESIC and GSTN) from three Ministries through a single form.

De-criminalisation of technical & procedural violations under Companies Act and reducing the burden on criminal courts & NCLT by shifting 16 offences sections to monetary penalty regime vide Companies (Amendment) Bill , 2019  notified on July 31 ,2019. During the last three years more than 1,25,000  companies have been incorporated every year in the country in this manner, as compared to 50-60,000 companies in earlier years, according to a PIB release.