starting a business questionnaire india (mumbai) · describe in detail any reform that has affected...

Starting a Business Questionnaire – India (Mumbai) www.doingbusiness.org

Dear Contributor,

We would like to thank you for your participation in the Doing Business project. Your expertise in the area of Starting a Business in India is essential to the success of the Doing Business report, one of the flagship publications of the World Bank Group that benchmarks business regulations in 190 economies worldwide. The Starting a Business indicator, which measures the number of procedures, time, cost and paid-in minimum capital requirement for a small and medium-size limited liability company to start up and formally operate, is one of the 11 indicator sets published by the Doing Business report.

The report attracts much attention around the world. The latest edition, Doing Business 2017: Equal Opportunity for All, introduced improvements in the paying taxes and protecting minority investors indicators, and included a gender component in 3 of 11 Doing Business indicator sets. It received over 7,000 media citations within just a week of its publication on October 25, 2016 and the report was downloaded almost 40,000 times within that same period. A record 137 economies implemented a total of 283 reforms. Low and middle income countries carried out more than 75% of these reforms, with Sub-Saharan Africa accounting for 80 of them.

Governments worldwide read the report with interest every year, and your contribution makes it possible for the Doing Business project to disseminate the regulatory best practices that continue to inspire their regulatory reform efforts. Since 2004, more than 170 economies have implemented more than 580 reforms making it easier to start a business. In 2015/16, 49 economies implemented such reforms. For Starting a Business, most focused on simplifying pre-registration and registration formalities.

We are honored to be able to count on your expertise for Doing Business 2018. Please do the following in completing the

questionnaire:

Review the assumptions of the case study before updating last year's information in the questionnaire.

Describe in detail any reform that has affected the process for starting a business since June 1, 2016.

Be sure to update your name and address if necessary, so that we can mail you a complimentary copy of the report.

Kindly return the questionnaire to Morgann Reeves at [email protected].

We thank you again for your invaluable contribution to the work of the World Bank Group.

Sincerely,

Morgann Reeves Tel: +1 202 473-8243 Email: [email protected]

http://www.doingbusiness.org/

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1.Case Study Assumptions

The Starting a Business indicators record all procedures officially required, or commonly done in practice, for an entrepreneur to start up and formally operate an industrial or commercial business, as well as the time and cost to complete these procedures and the paid-in minimum capital. These procedures include obtaining all the necessary licenses and permits and completing any required notifications, verifications or inscriptions for the company and employees with relevant authorities.

Please provide responses to the questions in sections 2 and 3 of the questionnaire based on the case study assumptions and information below.

You are setting up the following company:

Type of limited liability company

Private Limited Company. The business has 5 owners (shareholders) and is 100% domestically owned.

Location In Mumbai.

Company size

Start-up capital: INR 1,022,896 (equivalent to USD 15,900).

Annual sales (turnover): INR 10,228,958 (equivalent to USD 159,000).

Number of employees: 10-50 employees (within 1 month of commencement of operations). All are nationals of India.

Activities

The business conducts general industrial or commercial activities, such as production or sale of goods or services to the public.

The business does not qualify for investment incentives or any special benefits.

The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It does not use heavily polluting production processes.

Assets and office space

The business does not own real estate. It leases the commercial plant and offices.

The amount of the annual lease for the office space is INR 102,290 (equivalent to USD 1,590).

The size of the entire office space is approximately 929 square meters (10,000 square feet).

Company deed 10 pages long.

2.Reform Update

When answering the questions below, please use the case study assumptions provided in section 1.

2.1 Has there been any reform (in practice or in laws and regulations) related to the process of starting a business SINCE June 1, 2016?

If applicable, please indicate the name and date of the law and provide an online link to the legal text:

Response If yes, has this reform simplified or complicated the process of starting a business? Please explain:

Yes The following reforms have introuced significant efficiencies of time in the process of Starting a

Business.

1. REDUCTION OF APPLICABE PROCEDURES FROM 14 to 5: The applicable number of

procedures have been reduced from 14 to 5 with the introduction of the "Simplified Proforma for

Incorporating a Company electronically" (SPICe aka INC 32). SPICe is the only default application

for incorporation of companies. The "mandatory" SPICe form combines 5 procedures across

agencies (MCA and CBDT) to 1 procedure. Listed below are the erstwhile procedures which have

now been subsumed as 1 procedure:

(a) Incorporation of company

(b) Obtain director identification number (DIN)

(c) Reservation of company name

(d) Application for Permanent Account Number (PAN)

(e) Application for Tax deduction and collection Account Number (TAN)

2. REDUCED APPLICATION FEE FOR INCORPORATION: Application Fee for

incorporation of company has been reduced from INR 2,000/- to to INR 500/-

3. ONLINE AND REALTIME APPLICATION PROCESS FOR ESIC & EPFO WITHOUT

THE REQUIREMENT OF INSPECTION OR PHYSICAL TOUCH POINTS: Procedures

associated with Employee State Insurance Corporation (ESIC) and Employee Provident Fund

Organization (EPFO) have been made electronic and are now provided in real time. Inspection

procedures associated with both procedures have been dispensed with.

4. ONLINE AND REAL TIME REGISTRATION UNDER SHOPS & ESTABLISHMENT's

ACT IN MUMBAI: Applications are processed electronically inspection procedures have been

dispensed with. There are a total of 1538 approvals were given in one day out of total 1673

application received in January, 2017.

5. ESTABLISHMENT OF CENTRAL REGISTRATION CENTRE (CRC): MCA rolled out

the first phase of CRC in January, 2016. THE CRC is process re-engineering initiative which

utilises a combination of automation, rationalization of rules, deployment of certified professionals

and centralized processing to reduce time taken to incorporate a new company. Resultantly, the

time taken to incorporate a company has been brought down to an average of 0.3 days in

December, 2016.

6. In Mumbai, the procedures for VAT registration and Profession Tax have been clubbed into 1

consolidated procedure which one may apply online. There are a total of 11729 approvals were

given in one day out of total 14929 application received in January, 2017

2.2 Are you aware of any reform (in practice or in laws and regulations) related to the process of starting a business that is expected to be adopted PRIOR TO June 1

, 2017?

7. The following CORRECTIONS are to be made:

7.1 DIGITAL SIGNATURE CERTIFICATE (DSC): DSC's are counted as a procedure in the

past year's ranking procedure, however the requirement of DSC is not specific to Incorporation of a

Company and is in fact a necessary aspect of validating electronic transactions world-wide. In the

event an applicant has an existing DSC, he is free to utilise the same for Incorporation of a

Company and will not be required to apply for a DSC.

7.2 COMMON / CORPORATE SEAL: The requirement of Common / Corporate seal was

dispensed with in the Companies (Amendment) Act, 2015, yet it has been considered in last years'

Doing Business Report.

7.3 BANK ACCOUNT: Bank accounts are not required "mandatorily" for any forms during the

procedures associated with starting a business and hence are incorrectly counted as a "procedure".

Only ESIC registration used to require bank account details previously, however, the practice was

discontinued in April, 2016. The provision of bank account information has been made optional at

the time of registration since then.

8. The procedures and timelines for starting a Business is as follows:

1. Incorporate a company with Name Reservation, DIN, PAN and TAN using SPICe Form

online-0.5 day

The cost of the procedure is as follows: Filing of Memorandum of Association: INR 2,000 Filing fee for Articles of Association: INR 400 Filing fee for integrated INC-32 (SPICe): INR 500 Stamp Duty: INR 10 Stamp Duty for Articles of Association: INR 200

Stamp Duty for Memorandum of Association: INR 750

(The process for drafting Memorandum and Articles of Association has been simplified with the introduction of eMoA and eAoA.) 2. Register with ESIC-0.5 Day (Simultaneous Process)-No Charge

3. Register with EPFO-0.5 Day (Simultaneous Process)-No Charge

4. Register with VAT and Profession Tax; online and real time-0.5 Day-the cost is INR 500

5. Register with Shops and Establishment Act (online and real time)-0.5 Day (Simultaneous

Process)-INR 4800

The procedures which are completely eliminated are: Procedure-1: Obtain a digital signature-The requirement of obtaining digital signature is not

specific to registration of companies and a person may have digital signature readily available for a

variety of online transactions. Hence, to count it as an additional procedure may reflect an incorrect

stance. Evidently, this would not count as a procedure in case an individual is in possession of a

digital signature. Further it takes only four hours to get the digital signature in India from Certifying

Authorities. The cost of obtaining a digital signature is INR 899.

Procedure-5: Make a company stamp- The companies Act has already amended and removed the

requirement of company seal in 2015. ESIC and PAN do not any longer require corporate seals.

India's central bank and monetary authority, the Reserve Bank of India (RBI) has issued an

advisory to the Indian Banks Association (IBA) to educate banks that corporate / common seal is

not mandated by law for opening of a bank account, unless the company's Memorandum and

Articles of Association specify the same. Accordingly, banks do not insist on obtaining company

seal at the time of opening accounts of the company.

Procedure-7: Open a bank Account-Opening of a bank account is not a "mandatory" requirement at

the time of filing of an application for incorporation. Accordingly, to treat opening of a bank

account as a separate procedure, despite the fact that it is not required for incorporation would

reflect an incorrect position both de jure and de facto. The absence of a bank account would not

stop the process of starting a business / incorporation of a company. Any company would require a

bank account to make monetary transactions whether the transaction be with the government, or

otherwise, in any country of the world.

Procedure-13: Receive inspection and obtain the shops and Establishment Registration certificate-

Municipal Corporation of greater Mumbai has removed the requirement of inspection.

Procedure-14 Registration for Profession Tax: This procedure is merged with VAT registration

using an integrated online common application form.

9. The total cost of incorporting a compoany stands at INR 3860, which is reduced from DBR, 2017 figure of INR 5293. The total cost for starting a business in India Company incorporation-INR 3860 Digital Signature- INR 899 DIN for 2 directors-INR 1000 PAN-INR 107 TAN-INR 63 VAT-500 Registration under Shops and Establishment- INR 4800 The total is INR 11229 ( USD 165) which is around 10% of income per capita ( USD 1590).

Response If yes, is this reform expected to simplify or complicate the process of starting a business? Please explain:

Yes The registration for ESIC and EPFO will be done through a common application form.

2.3 Are you aware of any reform (in practice or in laws and regulations) related to the process of starting a business that is ongoing and is expected to be adopted AFTER June 1, 2017?

Response If yes, is this reform expected to simplify or complicate the process of starting a business? Please explain:

Yes INTRODUCTION OF A SINGLE TAXATION REGIME UNDER GOODS & SERVICES TAX (GST): GST will be implemented nationwide fromom 1st June, 2017. All indirect taxes will be subsumed under GST (i.e. including Value Added Tax, Central SalesTax, Service Tax etc).

2.4 How many Private Limited Company registrations did you or your company oversee in the past year?

-Click to Select-

3.The Business Start-up Process

For your convenience, last year’s aggregate answers are included in this survey. They represent a unified answer based on the answers we received from various contributors. Thus, they may not match the specific answers that you or your colleagues provided last year.

If you feel that the unified answers do not reflect the current reality in your economy, kindly provide us with your own answers and a clear indication of the reasons for your different views.

Please describe in detail any change to the data and indicate when the change took effect. Please specify the reason why you think the data for this year should be different:

(i) Correction: our unified answer is wrong and does not reflect the current practice in your economy; (ii) Reform: the different answer resulted from a modification of practice or law after June 1, 2016; (iii) Other: please specify.

Definitions

A procedure is any interaction of the company founder with external parties, for example, government agencies, lawyers, auditors or notaries. Interactions between company founders or between company officers and their employees are not considered separate procedures. Both pre- and post-incorporation procedures that are required for an entrepreneur to legally operate a business (including procedures required after the company incorporation) are recorded. If female entrepreneurs have to comply with additional requirements compared to male entrepreneurs, such additional requirements are included in the list of procedures and are marked as "applies to women only".

Time is recorded in calendar days, not working days. The time span for each procedure starts with the first filing of the application or request and ends once the company has received the final document, such as the company registration certificate or tax number (for example, it includes the time to make an appointment with a notary or any waiting time once the documents are filed). It is assumed that the entrepreneur has had no prior contact with any of the officials. Procedures that can be fully completed online and in less that 1 day are counted as half a day.

Costs include only official fees and taxes. Bribes are excluded. If possible, please indicate the relevant fee schedule or calculation formula (for example, as a percentage of the company’s capital). Fees for professional services (such as those of notaries, lawyers or accountants) are included only if the company is required by law to use such services or if the use of professional services are solicited by the majority of entrepreneurs.

Paid-in minimum capital requirement is the amount that an entrepreneur is required to deposit in a bank or with a

notary prior to or within 3 months of company registration.

Please note that all time and cost estimates for each procedure should be provided assuming that no bribe is offered to the officials. Similarly, please assume that no procedure can be skipped through a bribe payment.

3.1 Please update the data below, taking into account the case study assumptions provided in section 1.

Please describe in detail any change to the data and indicate when the change took effect.

When your answers differ from last year's information, please specify whether this is due to a correction, a reform or other reason.

Last year's information Please update last Comments (correction, year's information reform, other)

Most common type of Private Limit domestic limited liability Company company in India (Mumbai).

ed Same as previous year

Minimum capital requirement INR 0 Same as previous year

Paid-in minimum capital INR 0 requirement (minimum amount to be deposited prior to or within 3 months of company registration)

Same as previous year

3.2 Please revise as needed the following list of procedures to start a company in Mumbai based on the scenario described in section 1.

Procedure 1

Obtain a digital signature certificate

Time: Time last year: 1-3 days

Time update: NA

Can this procedure be done simultaneously with another procedure? -Click to Select-

If so, which other procedure can it be done simultaneously with? NA

Cost: Cost last year: INR 700 to INR 2,500 per Digital Signature Certificate

Cost update: 0

Legal basis for the fee (including a link to the fee schedule where available): The fee attributable to DSC is levied by a private agency for issuance and does not stem from a statutory requirement. Any variance of cost (INR 700 - 2500) is associated with the term and class of DSC.

Agency: Agency last year: Authorized private agency (Federal)

Agency update:

Procedure Details:

Details: The applicant must obtain a Class-II Digital Signature Certificate from a certification agency authorized by the Controller of Certification Agencies. These include private agencies like NIC, E-Mudhra, MTNL Trust line, to which company directors submit the prescribed application form along with notarized proof of identity and address.

A Class-II Digital Signature Certificate can be obtained for either a period of 1 year or a period of 2 years, and then needs to be renewed for another 1 or 2 years upon payment of renewal fees. Each agency has its own fee structure, ranging from INR 700 to INR 2500. The cost will vary in accordance with the duration of the Digital Signature Certificate. Once the Digital Signature Certificate is obtained, the authorized personnel (directors/manager/secretary) are required to register the same with MCA for statutory e-filing. Your comments: The requirement of a DSC is not specific to registration of companies and a person may have a DSC readily available for a variety of online transactions. Hence to count it as an additional process, may reflect an incorrect stance. Evidently, this would not count as a step in case an individual is in possession of a DSC.

If you made changes to last year’s information, please indicate whether these reflect a correction or a reform Correction

Please explain the changes and provide the legal basis when applicable:

Can this procedure be done online? Yes Please provide a link to the website: Multiple agencies

If yes, do the majority of entrepreneurs use this online service? Yes

If not, what are the main obstacles?

If the procedure is done online, is any further in-person interaction still needed at the agency (i.e. a visit to submit physical documents in addition to the electronic submission; a visit to obtain the final document; receive a physical inspection visit, etc.)? No

If yes, please explain:

Procedure 2 Obtain director identification number (DIN) online

Time: Time last year: 1 day

Time update: 0 day

Can this procedure be done simultaneously with another procedure? Yes

If so, which other procedure can it be done simultaneously with? Under the new mandatory SPICe form (INC 32) Procedures 2, 3, 4, 6 and 11 have been combined under one application process. The procedure hence gets subsumed in procedure 4.

Cost: Cost last year: INR 500 per DIN

Cost update: INR 500 over and above INR 500 fee prescribed for SPICe form in subsequent procedures

Legal basis for the fee (including a link to the fee schedule where available): The Companies (Incorporation) 5th amendment rules 2016 states application for allotment of Director Identification Number (DIN) shall be acommpanied with fee of INR 500 in addition to registration fees specified in Companies (Registration of Offices and Fees) Rules, 2014. Refer: http://www.mca.gov.in/Ministry/pdf/5th_Amendment_Rules_29122016.pdf

Agency: Agency last year: Ministry of Corporate Affairs (Federal)

Agency update:

Procedure Details:

Details: In accordance with the Companies Act, 2013, every private limited company must have at least 2 directors, each obtaining a DIN and DSC.

1) Form DIR 3 has to be filed online with the Ministry of Corporate Affairs (MCA) along with a photograph and scanned copy of supporting documents, i.e., proof of identity and proof of residence not older than 2 months.

2) Form DIR 3 has to be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate (DSC).

3) Form DIR 3 has to be verified digitally by: (i) a chartered accountant, company secretary or a cost accountant in practice (Practicing Professional); or (ii) a company secretary in full-time employment of the company or a director of the company in which the applicant is to be appointed as director.

4) In case the Form DIR 3 is certified by a Practicing Professional and is not identified by the system as a potential duplicate, the DIN will be approved and generated by the system immediately. In all other cases, a DIN application number is generated. The DIN application is then reviewed by MCA officials. In case the MCA officials are satisfied with the application based on the information provided, the DIN will be generated within a month of the date of application. If

http://www.mca.gov.in/Ministry/pdf/5th_Amendment_Rules_29122016.pdf

the eForm is not approved, then status of provisional DIN will appear as "Lapsed." Legal basis: Companies (Appointment and Qualifications of Directors) Rules, 2014 and FAQs published by Ministry of Corporate Affairs. The fee for obtaining a DIN number is specified in the Companies (Registration Offices and Fees) Rules, 2014. Your comments: DIN allotment is no longer a pre-requisite for filing for incorporation as Application Process has been integrated for Incorporation of company wherein an applicant can file for procedures 2,3,4,6 and 11 through a single application process.

If you made changes to last year’s information, please indicate whether these reflect a correction or a reform Reform

Please explain the changes and provide the legal basis when applicable: The application process to incorporate companies in India has been amended to integrate procedures 2,3,4,6 and 11 by an amendment to the Companies (Incorporation) 5th Amendment Rules, 2016.

Can this procedure be done online? Yes Please provide a link to the website: http://www.mca.gov.in/MinistryV2/companyformsdownload.html





Procedure 3 Reserve the company name with the Registrar of Companies (ROC) online


Time update: 0 days



Cost: Cost last year: INR 1,000

Cost update: INR 500 for integrated SPICe form (INC 32) for procedures 2, 3,4,6 and 11

Legal basis for the fee (including a link to the fee schedule where available): As per Companies (Registration of Offices and Fees) Rules, 2014 http://www.mca.gov.in/Ministry/pdf/tableoffee_01042014.pdf

Agency: Agency last year: Registrar of Companies, Ministry of Corporate Affairs (Federal)

Agency update:

Procedure Details:

Details: In order to reserve a unique company name, a name search is conducted on the website of MCA and eForm INC-1 is required to be filed pursuant to Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014. The name reservation fee is provided under the Companies (Registration offices and fees) Rules, 2014.

The process is as follows: 1. Check availability of the proposed name by checking on the MCA21 portal for other companies or LLPs having similar names. Alternatively, engage a professional (practicing chartered accountant, company secretary or cost accountant) to perform the check on the MCA 21 portal and provide a search report which can be attached to the application. 2. Prepare the application in eForm INC-1 with all relevant details and declarations. If a professional has been engaged to check availability of name, have the professional certify and

http://www.mca.gov.in/MinistryV2/companyformsdownload.html


http://www.mca.gov.in/Ministry/pdf/tableoffee_01042014.pdf


Digitally sign the eForm. 3. Upload the eForm INC-1 to the MCA 21 portal and pay fees of INR 1,000 electronically (net banking or credit card). 4. If the e-Form has been certified by a professional (as described above), the proposed name shall be approved by the Registrar of Companies on a priority basis via the Straight Through Process ("STP"), provided the name is not similar to any existing trademark, any of the words proposed in the company's name does not exactly match any existing company's name and the name does not consist of a single word (other than private limited). 5. The name, if made available to the applicant, will be reserved for the applicant to use for 60 days from the date of application. If the proposed company is not incorporated during this 60-day period, the approval will lapse and the name will be available to other applicants. Your comments: Provisions related to reservation of the name for a period of 60 days shall not apply in case of incorporation using the SPICe form (INC 32) as the application process has been integrated for procedures, 2,3,4,6 and 11.


Please explain the changes and provide the legal basis when applicable: The Companies (Incorporation) Amendment Rules, 2016 have integrated procedures 2,3,4,6 and 10.

Can this procedure be done online? Yes Please provide a link to the website:





Procedure 4 Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation

Time: Time last year: 5 days on average

Time update: 0.5 days


If so, which other procedure can it be done simultaneously with? Under the new mandatory SPICe form (INC 32) Procedures 2, 3, 4, 6 and 11 have been combined under one application process. This procedure subsumes procedure 2, 3, 6 and 11.

Cost: Cost last year: see comments

Cost update: INR 500 for integrated SPICE form (INC 32) for procedures 2,3,4,6,11

Legal basis for the fee (including a link to the fee schedule where available): AAs per Companies (Registration of Offices and Fees) Rules, 2014 http://www.mca.gov.in/Ministry/pdf/tableoffee_01042014.pdf

Agency: Agency last year: Registrar of Companies, Ministry of Corporate Affairs (Federal)

Agency update:

Procedure Details:

Details: Pursuant to Section 7 (1) of the Companies Act, 2013, and pursuant to Rules 10, 12, 14 and 15 of Companies (Incorporation) Rules, 2014, the following forms are required to be electronically filed on the Ministry of Corporate Affairs website for incorporation purposes:

a) Form-INC-7 (Application for Incorporation of Company). Scanned copies of the signed Memorandum and Articles of Association of the company, have to be attached to Form-INC-7. b) Form-INC-22 (Notice of situation or change of address of the registered office of the company). Proof of registered office address such as conveyance/ lease deed/ rent agreement



etc. along with the rent receipts as well as copies of the utility bills (proof of evidence of any utility service like telephone, gas, electricity etc.) depicting the address of the premises not older than two months is required to be attached to Form INC 22. c) Form- DIR-12 (Particulars of appointment of directors and the key managerial personnel and the changes among them).

Fee schedule for a small company of paid-up share capital between INR 500,000 and INR 1,000,000: - Filing of the Memorandum of Association: INR 2,000 - Filing fee for filing the Articles of association: INR 400 - Filing fee for Form INC-7: INR 400 - Filing fee for Form INC-22: INR 400 - Filing fee for Form DIR-12: INR 400 - Stamp duty: INR 100 - Stamp duty for Articles of Association: IINR 2,000 (INR 1,000 on every INR 5 Lakhs of authorized capital or part thereof subject to a maximum of 50 Lakhs of Stamp Duty) - Stamp duty for Memorandum of Association: INR 200 Your comments: Under the new mandatory SPICe form (INC 32) Procedures 2, 3,4,6 and 10 have been combined under one application process. INC 7,22 and DIR-12 are no longer required to be furnished at the time of incorporation and associated costs have been accordingly dispensed with. The following changes have been effected in the fee schedule.

CHANGE IN FEE SCHEDULE: Fee schedule for a small company of paid-up share capital of INR 500,000: Filing of Memorandum of Association: INR 2,000 Filing fee for Articles of Association: INR 400 Filing fee for integrated INC-32 (SPICe): INR 500 Stamp Duty: INR 10 Stamp Duty for Articles of Association: INR 200 Stamp Duty for Memorandum of Association: INR 750 In addition the process for drafting Memorandum and Articles of Association has been simplified.


Please explain the changes and provide the legal basis when applicable: Required fee for filing incorporation of a company reduced from INR 2,000 to INR 500 http://www.egazette.nic.in/WriteReadData/2016/172018.pdf

Can this procedure be done online? Yes Please provide a link to the website: http://www.mca.gov.in/MinistryV2/companyformsdownload.html





Procedure 5 Make a company stamp

Time: Time last year: 1 day (simultaneous with previous procedure)

Time update: Company stamp is no longer mandatory as and is not required for incorporation of a company


http://www.egazette.nic.in/WriteReadData/2016/172018.pdf



If so, which other procedure can it be done simultaneously with? NA

Cost: Cost last year: INR 350-500

Cost update: NA

Legal basis for the fee (including a link to the fee schedule where available): NA

Agency: Agency last year: Authorized vendor (Private)

Agency update:

Procedure Details:

Details: As per the amendment to the Companies Act 2013, making a company seal is no longer a legal requirement. However, making a company rubber stamp is still commonly used in practice. The stamp is normally required to be affixed by a director upon signing on behalf of the company in order to file several applications relevant to business startup. This includes but is not limited to opening a bank account, application for registration with the Employee State Insurance Corporation (ESIC) and application for a company Permanent Account Numbers (PAN). Your comments: ESIC and PAN do not any longer require corporate seals. India's central bank and monetary authority, the Reserve Bank of India (RBI) has issued an adviosry to the Indian Banks Association (IBA) to educate banks that corporate seal is not mandated by law for opening of a bank account, unless the MoA and AoA of the company specify so. Accordingly, banks shall not insist on obtaining company seal at the time of opening accounts of the company.


Please explain the changes and provide the legal basis when applicable: Companies (Amendment) Act, 2015 eliminated the requirement for company seal. Also, as per Companies (Incorporation) Fifth Amendment Rules, 2016, company has to mandatorily apply for PAN using the integrated e-Form SPICe using digital signature. PAN after allotment by the Income Tax Department is affixed in the CoI and issued. Refer http://www.mca.gov.in/Ministry/pdf/AmendmentAct_2015.pdf

Can this procedure be done online? -Click to Select- Please provide a link to the website:

If yes, do the majority of entrepreneurs use this online service? -Click to Select-


If the procedure is done online, is any further in-person interaction still needed at the agency (i.e. a visit to submit physical documents in addition to the electronic submission; a visit to obtain the final document; receive a physical inspection visit, etc.)? -Click to Select-


Procedure 6 Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI)


Time update: 0 days



Cost: Cost last year: INR 93 plus service tax

Cost update: INR 93 plus service tax

Legal basis for the fee (including a link to the fee schedule where available): As per National Securities Depository Limited (NSDL) notification, the fees for PAN application is INR 107. https://tin.tin.nsdl.com/pan/correctiondsc.html Part II contains fee. Link of MCA http://www.mca.gov.in/MinistryV2/spicefaq.html

http://www.mca.gov.in/Ministry/pdf/AmendmentAct_2015.pdf

http://www.mca.gov.in/Ministry/pdf/AmendmentAct_2015.pdf

http://www.mca.gov.in/MinistryV2/spicefaq.html

Agency: Agency last year: Private agencies authorized by UTI or NSDL, as outsourced by the Income Tax Department (Federal)

Agency update: Application to MCA while issuance is through Central Board of Direct Taxes

(CBDT)

Procedure Details:

Details: Under the Income Tax Act 1961, each person must quote his or her permanent account number (PAN) for tax payment purposes and the tax deduction and collection account number (TAN) for depositing tax deducted at source. The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. Since 2003/04, UTI and NSDL have become the authorized agencies that process PAN registration applications on behalf of the Income Tax department.

The applicant completes Form 49A (statutory form for applying for PAN), pays the due fees of INR 93 (plus applicable taxes currently at 12.36%) either online or otherwise and submits the application form together with proof of identity, proof of address and 2 recent photographs to the authorized agent/designated service centers for verification. After being allotted a PAN number, UTIISL or NSDL will print the PAN card and deliver it to the applicant. Your comments: Stakeholders have to now mandatorily apply for PAN and TAN alongwith the integrated e-Form SPICe for incorporation of a company. Stakeholders do not have to separately apply for PAN after company incorporation and instead have to apply for it in the integrated SPICe incorporation form itself. PANs for Companies are affixed in with Certificate of Incorporation (CoI) by the Ministry of Corporate Affairs. This ensures 100% coverage for allotment of PAN to companies, as it is being done simultaneously with incorporation of the company. On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department affixed on the CoI. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user


Please explain the changes and provide the legal basis when applicable: As per the Companies Incorporation (Amendment) Rules, 2017, “18. The Certificate of Incorporation shall be issued by the Registrar in Form No.INC-11 and the Certificate of Incorporation shall mention permanent account number of the company where it is issued by the Income-tax Department”. On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user. Referhttp://www.egazette.nic.in/WriteReadData/2016/172018.pdf

Can this procedure be done online? Yes Please provide a link to the website: http://www.mca.gov.in/MinistryV2/companyformsdownload.htm





Procedure 7 Open a bank account

Time: Time last year: 2 days

Time update: NA

Can this procedure be done simultaneously with another procedure? No

If so, which other procedure can it be done simultaneously with?

Cost: Cost last year: no charge

http://www.egazette.nic.in/WriteReadData/2016/172018.pdf

http://www.mca.gov.in/MinistryV2/companyformsdownload.htm

http://www.mca.gov.in/MinistryV2/companyformsdownload.htm

Cost update:

Legal basis for the fee (including a link to the fee schedule where available):

Agency: Agency last year: Bank

Agency update:

Procedure Details:

Details: The company must open a bank account. The bank account details must be provided by the company in various post-registration applications, such as registrations for taxes. Your comments: Opening a bank account is not a "mandatory" requirement at the time of filing

of an application for incorporation. Accordingly, to treat opening of a bank account as a separate procedure, despite the fact that it is not required for incorporation would reflect an incorrect position both de jure and de facto. The absence of a bank account would not stop the process of starting a businesss / incpororation of a company. Any company would required a bank account to make monetary transactions whether the transaction be with the government, or otherwise, in any country of the world.



Can this procedure be done online? Yes Please provide a link to the website: multiple



If the procedure is done online, is any further in-person interaction still needed at the agency (i.e. a visit to submit

physical documents in addition to the electronic submission; a visit to obtain the final document; receive a physical inspection visit, etc.)? Yes


Procedure 8 Register with Employees' Provident Fund Organization

Time: Time last year: 7 days on average, simultaneous with previous procedure



If so, which other procedure can it be done simultaneously with? Application for DIN, Reservation of name, Incorporation of Company, Appointment of Directors and obtaining TAN and ESI and Shops and Establishment registration


Cost update: 0

Legal basis for the fee (including a link to the fee schedule where available): http://www.epfindia.com/site docs/PDFs/OLRE PDFs/OLRE with DSC Revised Sep2016.pdf

Agency: Agency last year: Employees Provident Fund Organization (Federal)

Agency update:

http://www.epfindia.com/site

Procedure Details:

Details: The Employees Provident Fund Organization (EPFO) is a statutory organization under the Ministry of Labor and Employment. The Employees Provident Funds & Miscellaneous Provisions Act, 1952 applies to an establishment, employing 20 or more persons and engaged in any of the 183 Industries and Classes of business establishments, throughout India excluding the State of Jammu and Kashmir.

Pursuant to launch of OLRE (online registration of establishment portal) by the Employee Provident Fund department, employers are required to apply online for registering their establishment. For verification purposes, the employer shall send the copies of all the documents mentioned in the application form along with the copy of the application generated at the time of submission after the issuance of PF Code intimation letter to the EPFO office. Your comments: The EPFO registration is granted from URL) in online manner in real time. The requirement for Bank details have been made optional while registering with EPFO, and a business may choose not to provide the bank account details. No manual intervention / approval is required for registration.

If you made changes to last year’s information, please indicate whether these reflect a correction or a reform -Click to Select-


Can this procedure be done online? Yes Please provide a link to the website: https://unifiedportal- emp.epfindia.gov.in/epfo/





Procedure 9 Register for VAT online

Time: Time last year: 10 days, simultaneous with previous procedure



If so, which other procedure can it be done simultaneously with? Registration of Professional Tax has been combined with VAT registration

Cost: Cost last year: INR 500 (Registration Fee) + INR 25 (Stamp Duty) for compulsory VAT registration

Cost update:


Agency: Agency last year: Department of Sales Tax

Agency update:

Procedure Details:

Details: VAT online registration is conducted via the website www.mahavat.gov.in. After the completed application form is submitted online, an acknowledgment containing the date and time for attending before the registering authority along with code/designation and address of registering authority is generated. The company should print a copy of the completed e- application and submit it along with the acknowledgement to the registration authority for verification and photo attestation on a given date and time along with relevant documents. If the application is correct and complete in all respect along with relevant documents, then the registering authority will generate TIN after verification of the documents. Registration certificate will be printed and issued to the company on the appointed date. The appointment date is usually scheduled in the next 10 days.

Other accompanying documentation includes: - Certified true copy of the memorandum and articles of association of the company. - Proof of permanent residential address. - Proof of place of business (lease agreement) - One recent passport size photograph of the applicant - Copy of Income Tax Assessment Order having PAN or copy of PAN card - Chalan in Form No. 210 (original) showing payment of registration fee at INR 5000/in case of voluntary RC and INR 500/in other cases Your comments: An electronic application process has been created under which Professional Tax registration (Procedure 13) may also be applied for. There is no need of a separate procedure-13.


http://www.mahavat.gov.in/


Can this procedure be done online? Yes Please provide a link to the website: https://newautomation.mahavat.gov.in/newregistrationandreturn/index.html





Procedure 10 Register for medical insurance (ESIC)




If so, which other procedure can it be done simultaneously with? Under the new mandatory SPICe form (INC 32) Procedures 2, 3,4,6 and 11 have been combined under one application process.


Cost update: 0

Legal basis for the fee (including a link to the fee schedule where available): Employee State Insurance Act, 1948

Agency: Agency last year: Employees' State Insurance Corporation (Federal)

Agency update:

Procedure Details:

Details: As per the Employees' State Insurance (General), Form 01 is the form required to be submitted by Employer for registration. The Employer Code Number issued will be included in the "intimation letter" which is sent by post to the employer. Employers can now submit application online for registration under ESI Act on the ESIC website (www.esic.in).

The Employee’s individual insurance is a separate process and occurs after Employer’s registration. The Employer is responsible for submitting the required Declaration Form and employees are responsible for providing correct information to the employer. Your comments: The employer registration is now totally electronic without need for submitting any physical document. On successful submission of information the the employer number is generated automatically and a system generated registration letter is automatically sent to the email of the address. The user id and password is also sent by email immediately on generation of the employer code which can be used by the employer for doing all online activities. https://www.esic.in/ESICInsurance1/ESICInsurancePortal/Signup.aspx



Can this procedure be done online? Yes Please provide a link to the website: http://www.esic.in/ESICInsurance1/ESICInsurancePortal/Portal Login.aspx



If the procedure is done online, is any further in-person interaction still needed at the agency (i.e. a visit to submit

physical documents in addition to the electronic submission; a visit to obtain the final document; receive a physical

http://www.esic.in/ESICInsurance1/ESICInsurancePortal/Signup.aspx

http://www.esic.in/ESICInsurance1/ESICInsurancePortal/Portal

http://www.esic.in/ESICInsurance1/ESICInsurancePortal/Portal

inspection visit, etc.)? No If yes, please explain:

Procedure 11

Obtain a tax account number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department


Time update: 0 days



Cost: Cost last year: INR 55 application fee plus service tax

Cost update: Subsumed under INR 500 for SPICe form processing fee


Agency: Agency last year: Private agencies authorized by NSDL, as outsourced by the Income Tax Department (Federal)

Agency update: Application is submitted to MCA and TAN issued by Income Tax Department

Procedure Details:

Details: The tax deduction and collection account number (TAN) is a 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax, as per Section 203A of the Income Tax Act.

Any authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) can accept and process the TAN application. TAN applications can be made either online through the NSDL website www.tin-nsdl.com or offline. The application must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. The processing fee is INR 55 (plus applicable taxes). After verification of the application, it is sent to Income Tax Department which issues the TAN to the applicant. The national government levies the income tax. Your comments: Stakeholders have to now mandatorily apply for PAN and TAN alongwith the integrated e-Form SPICe for incorporation of a company. Stakeholders do not have to separately apply for PAN after company incorporation and can instead apply for it in the integrated SPICe incorporation form itself. PANs for Companies are issued simultaneously with Certificate of Incorporation (CoI) by the Ministry of Corporate Affairs. This ensures 100% coverage for allotment of PAN to companies, as it is being done simultaneously with incorporation of the company. On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user.


Please explain the changes and provide the legal basis when applicable: Using the newly launched integrated e-Form SPICe/INC-32, stakeholders can now apply for FIVE services/procedures simultaneously v.i.z., company name, company integration, DIN of the directors, PAN and TAN for the newly incorporated company. In the notified Form for SPICe, Field No. 9 “Additional Information for applying Permanent Account Number (PAN) and Tax Deduction Account Number (TAN)” has been made mandatory. As per the Companies Incorporation (Amendment) Rules, 2017, “18. The Certificate of Incorporation shall be issued by the Registrar in Form No.INC-11 and the Certificate of Incorporation shall mention permanent account number of the company where it is issued by the Income-tax Department”. On approval of SPICe forms, the Certificate of Incorporation (CoI) is issued with PAN as allotted by the Income Tax Department. An electronic mail with Certificate of Incorporation (CoI) as an attachment along with PAN and TAN is also sent to the user.

http://www.tin-nsdl.com/

Can this procedure be done online? Yes Please provide a link to the website: www.mca.gov.in





Procedure 12 Register with Office of Inspector, Mumbai Shops and Establishment Act


Time update: 0 day



Cost: Cost last year: INR 1,200 (registration fee) + 3 times registration fee for Trade Refuse Charges (INR 3,600)

Cost update: 1,000

Legal basis for the fee (including a link to the fee schedule where available): https://maitri.mahaonline.gov.in/PDF/World_Bank_Doing_Business_Presentation_2018.pdf

Agency: Agency last year: Municipal Corporation of Greater Mumbai

Agency update:

http://www.mca.gov.in/

Procedure Details:

Details: According to Section 7 of the Bombay Shops and Establishments Act, 1948, the establishment must be registered as follows: - Under Section 7(4), the employer must register the establishment in the prescribed manner within 30 days of the date on which the establishment commences its work. - Under Section 7(1), the establishment must submit to the local shop inspector Form A and the prescribed fees for registering the establishment. Supporting documents must be attached, including a certified true copy of the company's PAN Card, TAN Allotment Letter, Certificate of Incorporation, Memorandum and Articles of Association, a list of company directors, their particulars and copies of their PAN Cards. - Under Section 7(2), after the statement in Form A and the prescribed fees are received and the correctness of the statement is satisfactorily audited, the certificate for the registration of the establishment is issued in Form D, according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961.

Since the amendments in the Maharashtra Shops & Establishment (Amendment) Rules, 2010, the Schedule for fees for registration & renewal of registration (as per Rule 5) is as follows: 0 employees: INR 120 1 to 5 employees: INR 360 6 to 10 employees: INR 720 11 to 20 employees: INR 1,200 21 to 50 employees: INR 2,400 51 to 100 employees: INR 4,200 101 or more: INR 5,400.

In addition, an annual fee (three times the registration and renewal fees) is charged as trade refuse charges (TRC), under the Mumbai Municipal Corporation Act, 1888. Your comments: Procedure 12 and has now been made electronic and clearances are

generated in real time basis. There is no requirement of inspection for granting registration under this Act.



Can this procedure be done online? Yes Please provide a link to the website: http://www.mcgm.gov.in/irj/portal/anonymous?NavigationTarget=navurl://f8a9fce2e56ffe9020d9f20e0519f9be&guest_u ser=english





Procedure 13 Receive inspection and obtain the Shops and Establishments registration certificate

Time: Time last year: 2-6 days, simultaneous with previous procedure

Time update: NA




Cost update: NA


Agency: Agency last year: Office of Inspector, Municipal Corporation of Greater Mumbai

Agency update:

Procedure Details:

Details: After applying for registration under the Shops and Establishments Act by visiting the nearest Citizen Facilitation Center (CFC) of the Municipal Corporation of Greater Mumbai to file the duly completed and signed Form A, along with the required documents and fees, the application is assigned to and processed by Department Head (Sr.Inspector) at the concerned Ward.

After site inspection and approval of the application the Registration Certificate is issued to the applicant. Your comments: The requirement for inspection has been dispensed with.

If you made changes to last year’s information, please indicate whether these reflect a correction or a reform: Reform

Please explain the changes and provide the legal basis when applicable: Procedure 13 has been done away with.

Can this procedure be done online? Yes Please provide a link to the website:





Procedure 14

Register for profession tax


Time update: NA




Cost update: NA


Agency: Agency last year: Commissioner of Profession Tax, Department of Sales Tax

Agency update: NA

Procedure Details:

Details: According to section 5 of the Profession Tax Act, every employer (not being an officer of the government) is liable to pay tax and shall obtain a certificate of registration from the prescribed authority.

The application form, duly completed can be submitted online. An acknowledgment containing t h e date and time for attending before the registration authority along with the code/ designation and address of the registration authority will be generated. The company should take a print of the copy of the completed e-application and the employee/ person applying on behalf of the company should affix his signature at relevant places and then submit the printed copy of the filled e-application form along with the acknowledgment to the registration authority for v e r i f i c a t i o n on the given date and time along with relevant documents. If the application is correct and complete in all respects, then the registration authority will generate TIN (registration/enrolment number under the Profession Tax Act) after the verification of the documents. Registration certificate will be printed and issued to the company on the appointed date.

Documents required to be provided with the application form include: - copy of the memorandum and articles of association of the company; - proof of place of business: Proof of ownership of the premises namely, copy of the property card or ownership deed or agreement with the builder or any other relevant documents; - copy of the PAN and/ or TAN; - proof of residence of the signatory to the application; - bank account number, bank and branch name, and blank cancelled cheque leaf of the bank account. Your comments: This procedure has been subsumed / merged with procedure 9 and accordingly should be deleted from the questionnaire.

If you made changes to last year’s information, please indicate whether these reflect a correction or a reform: Reform


Can this procedure be done online? Yes Please provide a link to the website: https://newautomation.mahavat.gov.in/newregistrationandreturn/index.html





3.3 Additional procedures to start a business. Please specify any new or existing procedures that have been omitted from the general list. For example, are there any missing procedures related to:

Registration of employer and/or employees with the relevant social security agency

Registration of employer and/or employees with the Ministry of Labor

Registration of employer with the relevant tax authority and/or VAT

Registration or inspection of the company’s office space by any agency

Additional procedure 1

Time:



Cost:


Agency:

Procedure Details:

Please indicate the sequence of this new procedure (for example, between procedures 2 and 3):






Additional procedure 2

Time:



Cost:


Agency:

Procedure

Details: Please indicate the sequence of this new procedure (for example, between procedures 2 and 3):






3.4 Please verify the time required for all procedures to start and operate a business in Mumbai

Question Answer

Last year, the overall time to start an operate a limited liability company in Mumbai – including all the

procedures required before, during and after registration - was estimated at: 26 days

This year, based on your experience and using the case study assumptions explained in Section 1, what is the overall average time to start and operate a business?

3 days

Based on your experience and the same case study assumptions, what can be the fastest time in practice to start and operate a business?

1 days

Based on your experience and the same case study assumptions, what can be the longest time in practice to start and operate a business?

7 days

If there is a difference between the fastest and the longest time, what is the main reason behind it? The SPICe form has

integrated DIN application,

Application for incorporation, appointment,

PAN, TAN and reservation of corporate's name.

4.Research Questions

This year, Doing Business is collecting data on the quality of infrastructure, accessibility of information and legislative framework for the registration of limited liability companies. This section measures data for India. Please provide your answers to the questions below as well as your comments when applicable.

4.1 Quality of infrastructure at the company registry

Answer Comments

4.1.1 Is there a centralized business registry with full national coverage (India)?

Yes MCA21 - MCA's e-Governance Project has ensured 100% coverage of company registry being completely online - for registration, record keeping as well viewing Purpose.

4.1.2 Are all company records stored in digital form in the economy (India)?

Yes Completely online through MCA21

4.1.3 Is there an electronic database to search all company records?


If yes, is the search available for individual cases?

Yes

If yes, is the search available in bulk (i.e., the result would show all companies that satisfy the search criteria)?

Yes

4.1.4 Is there an electronic system that covers the entire company registration process?


4.1.5 Is there a fully electronic filling of changes of ownership?


4.1.6 Is there an electronic payment for all fees related to company incorporation?


4.1.7 Is there an electronic signature or another electronic form of authentication (with relevant legal framework) used for online company registration?

Yes

4.1.8 Is there an automated electronic exchange of information between the business registry and other stakeholder agencies (tax authority, social security, pension fund, etc.)?

Yes MCA and CBDT, Income Tax Department have been integrated for simultaneous allotment of CIN, PAN and TAN

4.1.9 Is a Unique Business Identification number (UBI) for all companies used by all government agencies (business registry, tax authority, social security, etc.)?

Yes CIN of a specific company is used as the unique identifier by different agencies.

4.2 Accessibility of information about companies

Answer If online, please provide link

Comments

4.2.1 Does the company registry


Comments

provide public access to information about the:

• Name of company? Yes, online

http://www.mca.gov.in/m cafoportal/showCheckC ompanyName.do

• Company ID? Yes, online

http://www.mca.gov.in/ mcafoportal/viewCompa nyMasterData.do

• Name of directors? Yes, online

http://www.mca.gov.in/ mcafoportal/viewCompa nyMasterData.do

• Name of shareholders? Yes, online

http://www.mca.gov.in/m cafoportal/viewPublicDo cumentsFilter.do

Access to the required information allowed through paid service "View Public Document" on Ministry's website

• Name of beneficial owners? Yes, online



• Articles of association? Yes, online



• Year of incorporation? Yes, online

http://www.mca.gov.in/m cafoportal/viewCompany MasterData.do

• Legal address? Yes, online


• Physical address? Yes, online


• Type of main activity? Yes, online



• Annual accounts? Yes, online



• Annual returns? Yes, online


Access to the required information allowed through paid service "View Public Document" on Ministry's

http://www.mca.gov.in/m













Comments

website

• Capital structure (types, numbers and rights of outstanding shares)?

Yes, online



• Corporate structure (corporate family tree, subsidiaries, holding companies, etc.)?

Yes, online



4.2.2 Is the list of documents needed to incorporate a limited liability company available to the general public?

Yes, online

http://www.mca.gov.in/M inistryV2/spicefaq.html

4.2.3 Is the list of all fees (including their amount) required for company incorporation available to the general public?

Yes, online

http://www.mca.gov.in/m cafoportal/enquireFeePr eLogin.do

MCA's website includes service of a "Fee Calculator" for the staekholder to check fees of a specific service/e-Form online.

4.2.4 Are the service standards for company incorporation (e.g. commitment from the administration to deliver the document within a specific timeframe) available to the general public?

Yes, online

http://www.mca.gov.in/m cafoportal/enquireFeePr eLogin.do http://www.mca.gov.in/M inistry/pdf/Citizen_charte r_June2013.pdf

Citizen’ s / Client’s Charter for (Ministry of Corporate Affairs) (2016-2017)

4.2.5 Are statistics about newly registered limited liability companies available to the general public?

Yes, online

http://www.mca.gov.in/M inistryV2/incorporatedorc losedduringthemonth.ht ml

If yes, what is the number of new limited liability companies in the economy (India) in 2016?

93724

4.3 Legislative framework for company registration

Answer If yes, please provide a specific legal basis

Comments

4.3.1 Is it mandatory to verify the company name?

Yes

http://www.mca.gov.in/m cafoportal/showCheckC ompanyName.do

4.3.2 Is it mandatory to verify the identity of the entrepreneurs?

Yes Know Your Customer (KYC) & DIN

If yes, who is held responsible for verifying the identity of the entrepreneurs? Please select all that apply:

Registrar Notary Lawyer

Other



http://www.mca.gov.in/M






4.3.3 Is it mandatory to register changes of company name at the business registry?

Yes Form INC 1 www.mca.gov.in

If yes, what is the time limit for registering such changes?

30 days from the change of company name

Filing Annual Return (Form MGT 7)

4.3.4 Is it mandatory to register changes in shareholder details at the business registry?

Yes Filing Annual Return (Form MGT 7)


Once a year Form MGT 7 is to be flled within 60 days of Annual General Meeting

4.3.5 Is it mandatory to register changes in the articles of association at the business registry?

Yes Form MGT 14


30 days from changes to Articles of Association

4.3.6 Is it mandatory to register bankruptcy cases?

Yes Insolvency and Bankruptcy Code 2016

If yes, what is the time limit for registering such cases?

Within 180 days from filing apploication for insolvency resolution process under IBC 2016

4.3.7 Is it mandatory to register beneficial owner details and changes thereof?

Yes Form MGT 4 to 6 of Companies (Management and Administration) Rules, 2014

Section 89 of the Companies Act, 2013


30 days from the date of change occurs in beneficial interests

4.3.8 Are there legal provisions on preventing the corporate identity theft?

Yes Section 447 of the Companies Act

Punishment for Fraud

Referrals

Please help us expand our list of contributors by referring us to other experts in the private or public sector (lawyers, notaries, public officials or any expert on this field) who could respond to Doing Business questionnaire.

First Name Last name


Firm name Position Phone Email Profession -Click to Select-

Topic of Interest -Click to Select-

Thank you very much for completing the questionnaire!

We sincerely appreciate your contribution to the Doing Business project. The results will appear in Doing Business 2018

and on our website: http://www.doingbusiness.org. Your work will be gratefully acknowledged in both.

http://www.doingbusiness.org/