Companies having authorised capital of up to Rs 10 lakh can soon be incorporated without paying any fee, according to the government.
The move is part of process re-engineering initiatives aimed at making the "incorporation process speedy, smooth, simple and reducing the number of procedures involved for starting a business," an official release said today.
As part of the initiatives, the corporate affairs ministry would be introducing "RUN (Reserve Unique Name)" web service for reservation of company names. The service would be launched tomorrow.
There would be "zero fee for incorporation of all companies with authorised capital up to Rs 10 lakh".
As per the release, the process for allotment of Director Identification Number (DIN) is being re-engineered and the same would be allotted only at the time of an individual's appointment as director. This would be applicable for individuals who do not have a DIN.
"It is expected that the initiatives will significantly enhance the 'Ease of Doing Business Starting a Business' in the country and benefit a large number of stakeholders," the release said.
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