Govt eases procedures for setting up companies

In a move aimed at improving the ease of doing business, government has eased the procedure for setting up companies by introducing an integrated electronic application form.
The new e-form, available from today, can be used instead of separately filling up at least five e-forms by entities seeking to incorporate a company in India.
Corporate Affairs Ministry, which is implementing the Companies Act, has come out with the new form -- INC 29. It also comes at a time when Prime Minister Narendra Modi-led government is making efforts to improve the country's overall ease of doing business.
Through the new e-form, entities can apply for company name, Director Identification Number (DIN) and registration of company.

This single form would be in addition to other separate forms that are available for registering a company.
The form requires the interested entity to furnish the proposed name along with details about "significance of abbreviated or coined word in the proposed name".

Besides, it should be mentioned whether the proposed name contains names of any person other than the promoters or their close blood relatives.
It also has to be disclosed whether the name is similar to an existing Indian or foreign company.
While filling up the form, it has to be declared that the proposed name is not offensive to any section of people and also not in violation of the provisions of Emblems and Names (Prevention of Improper Use) Act, 1950.

The government is looking at ways to improve India's position to top-50 in terms of ease of doing business globally. At present, the country is at the 142nd position, according to the latest World Bank report in this regard.
As part of efforts to improve the ease of doing business in the country, the ministry has also proposed various changes to the new Companies Act, wherein most provisions came into force from April 1 last year.