NEW
DELHI, OCT 22:
The
government is considering a series of steps, including drastically reducing the
time for registration of business to one day, single registration of all labour
laws and cut in number of taxes to improve ease of doing business in India.
The
Department of Industrial Policy and Promotion (DIPP), has identified sectors
and specific reforms that are urgently required to substantially improve
India’s ranking in ease of doing business.
The
department has listed as many as 46 action points for different central
government ministries and state governments for improving the business climate.
For
Corporate Affairs Ministry, it has suggested that the time taken in
registration of business from existing 27 days be reduced to only one day as in
Canada and New Zealand.
It has also
called for doing away with the requirement of company seal and removal of
minimum paid up capital for starting a business.
It has
suggested introduction of Bankruptcy Law, Unified Insolvency Code, speedy
constitution of benches under National Company Law Tribunal and fixing of a
definite and predictable timeframe for rehabilitation and liquidation process.
Similarly,
it has recommended reduction in number of taxes and permitting online payment
of taxes; simplification of complex tax processes; expediting implementation of
Direct Tax Code, Goods and Services tax besides abolition of minimum alternate
tax for SEZ developers and units.
Besides,
it has suggested improvement in the system of judicial process for expeditious
enforcement of contracts.
It has
also suggested quick resolution of cases through alternative dispute
mechanisms, claim cases of less than Rs. 10 lakh
to be mandatorily referred for arbitration and increase in number of courts and
judges.
Further,
it has called for a uniform policy and procedure for all states for a single
window clearance along with combined application form and single registration
for VAT and other state taxes.
“The
DIPP has already started meetings with different ministries including Home
Affairs on the matter,” sources said.
For
Municipal Corporations, it has called for introduction of one-stop shop to
improve coordination of various departments and removal of No-Objection
Certificate requirement from Airports Authority of India for building outside
notified areas.
The
DIPP has also proposed timelines to implement these initiatives, aimed at
attracting investments as part of the Prime Minister Narendra Modi’s ‘Make In
India’ campaign.
During
the last three years, India has received an average of $ 30 billion annual
foreign direct investment.
India
needs huge investments to give a boost to its manufacturing sector and to
create million of jobs.
According
to a World Bank report, India has slipped three positions to 134th spot in the
latest ‘ease of doing business’ list, which is topped by Singapore.
(This article was
published on October 22, 2014)
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