15th July 2015 TO ALL MEMBERS: Ease of Doing Business The Government of India has in partnership with the State Governments has introduced a large number of reforms measures to improve regulatory environment across India The same is being shared with the members so that benefits of these reforms do accrue to investors and entrepreneurs. The detail of reform measures are enclosed for your kind information. Eapen Kalapurakal Secretary

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India, 20142014-15 Doing Business Study Reforms introduced by India during 2nd June, 2014-1st June, 2015 Starting a business: Government of India 1. The Companies (Amendment) Act, 2015 passed a. Requirement for following eliminated i. Minimum paid-up capital for companies; ii. Need for common seal; and iii. Declaration for commencement of business. 2. INC-29 for registration of companies introduced a. Availability of company name can be verified before actual application; and b. Application for company name and director’s identification number (DIN) merged with company incorporation process. 3. Employers’ registration with Employees’ Provident Fund Organization (EPFO) made online and real-time. It results in reduction of 11 days in time required for registration with EPFO. 4. Employers’ registration with Employees’ State Insurance Corporation (ESIC) made online and real-time. It results in reduction of 9 days in time required for registration with ESIC. 5. Single process for company incorporation, allotment of Permanent Account Number (PAN) and Tax Account Number (TAN) and registration with ESIC and EPFO, through eBiz portal. Five compliance through one-process, one-form. Government of Maharashtra 1. Integration of registration ID for Value-Added Tax (VAT) and Profession tax. No separate registration is required for profession tax now. 2. Registration for VAT has been made online, and shall be granted within a day of application. It results in reduction of 9 days in time required for VAT registration. 3. Registration with Office of Inspector, Mumbai Shops and Establishment Act has been made online. [http://www.mcgm.gov.in/irj/portal/anonymous/qlshopregistration] Government of NCT of Delhi 1. Allotment of Tax-payer Identification Number (TIN) for VAT has been made online and real-time. An applicant can immediately start business on receipt of TIN. 1|Page

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India, 20142014-15 Dealing with construction permits: Government of India 1. Colour coded zoning maps, clearly indicating the permissible heights in different zone of airports are being hosted on website of Airports Authority of India. 2. Online system for granting permit for felling tree has been launched in Delhi. Government of Maharashtra 1. Single window application for construction permits has been launched by Municipal Corporation of Greater Mumbai with auto scrutiny of drawing and combined scrutiny fee. This will facilitate grant of construction permits through a single interface and reduce the number of procedures from 27 to 13 and number of days from 162 to 63. Government of NCT of Delhi 1. Online sanction of building plans for residential plotted development, notified roads, village abadi and industrial buildings is in operation since long. Now residential plotted development and industrial plots’ building plans shall be sanctioned through common application form (CAF) and no separate NOC is required from Delhi Fire Service (DFS), CIF, Archaeological Survey of India (ASI) and Delhi Metro Rail Corporation (DMRC). 2. Similarly, building plans for commercial buildings will be approved through online common application form. 3. A detailed checklist for obtaining online sanction for building permits has been hosted on website. [http://www.mcdonline.gov.in] 4. Expeditious process of granting building permits based on certification/declarations made by Owner (self-certification), architect and structural engineer (third-party certification) regarding building plans confirming to Master Plan 2021, Building Bye-laws, 1983, and Delhi Municipal Corporation Act, 1957. 5. The online portal generates the date and time for joint inspection by the agencies involved on filing of the application. This reduces number of days of interaction for inspection with various agencies.

Getting electricity: Government of Maharashtra

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India, 20142014-15 1. The process has been streamlined to reduce the number of procedures involved to 3 and number of days for grant of electric connection to 21. 2. Permission for road cutting shall be granted by Municipal Corporation of Greater Mumbai within 24 hours. Government of NCT of Delhi 1. Distribution companies [DISCOMs] are allowed to install transformers from 220KVA to 450 KVA on H-type pole, thereby facilitating enhancement of capacity for grant of electric connection vide Notification No. 502/11/DP&D/2015 dated 6th April, 2015. 2. DISCOMs are allowed to self-certify fitness of all their electric installations and apparatus for voltage up to 11 KV vide Notification No. F.11(99)/2005/Power/1399-1413 dated 30th April, 2015. Inspection by electric inspector is required only in cases having voltage exceeding 11KV. 3. Electric connection up to 200 KW may be granted on LT line vide Notification No. F. 17(85)/Engg/DERC/2013-14 C.F. No.4074/4903 dated 23rd March, 2015. Accordingly rationalization of service-line cum development charges for sanctioned load of more than 100 KW up to 200 KW has been carried out. 4. Public Works Department (PWD) made the nodal department for granting road cutting permission on behalf of all land owning agencies. Road cutting permissions are now to be granted through online portal of PWD.

Paying taxes: Government of India 1. Social security contributions (payments of EPFO contribution) can now be made online through 56 accredited banks. Applicant need not spend long hours for depositing money into banks. This reduces number of payments by 11. 2. Payments of ESCI contribution can now be made online through 56 accredited banks. Applicant need not spend long hours for depositing money into banks. This reduces number of payments by 11.

Trading across borders: Government of India 1. Requirement of filing foreign currency exchange form for exports and imports separately has been eliminated as this information is captured through customs documents.

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India, 20142014-15 2. Requirement of separate packing list eliminated as the necessary details may be incorporated in the commercial invoice by exporter/importer. 3. Requirement of obtaining terminal handling receipts eliminated as the cargo release can now be made online through customs’ system. 4. Only three documents are required for exports and imports mandatorily and the same has been clarified through Notification No. 114(RE-2013)/2009-2014 dated 12th March, 2015 w.e.f. 1st April, 2015. 5. Customs Clearance Facilitation Committees headed by Chief Commissioner of Customs/Commissioner of Customs set up for every port vide Circular No. 13/2015-Customs dated 13th April, 2015, to ensure and monitor expeditious clearance of imported and export goods in accordance with timeline specified by the Ministry/Department concerned. 6. As first phase of online single customs clearance window, Customs, Food Safety and Standards Authority of India (FSSAI) and Department of Plant Protection, Quarantine and Storage (PQIS) has started online message exchange and clearing goods through such exchange vide Circular No. 09/2015-Cus dated 31st March, 2015.

Enforcing contracts: Government of Maharashtra 1. Seven benches have been designated in the High Court at Mumbai to deal with commercial cases. Government of NCT of Delhi 1. Specialized commercial courts have been created in High Court of Delhi: a. Two benches in the original jurisdiction to deal with the suits involving commercial disputes; b. Two division benches in the appellate jurisdiction to hear appeals; c. Tow benches in in the original jurisdiction to exclusively deal with arbitration matters; d. One bench each for exclusively dealing with company cases and with tax matters; 2. One court each has been designated to deal with commercial disputes in each District Court.

Resolving insolvency: Government of India 4|Page

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India, 20142014-15 1. Ministry of MSME has issued an Order facilitating revival and rehabilitation of MSMEs in case of sickness through a bankers committee.

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Government of India Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (for restrictive circulation only)

EASE OF DOING BUSINESS Government gives top priority to Ease of Doing Business Government of India has accorded top most priority to improving 'Ease of Doing Business' in India to nurture entrepreneurship. It has identified a number of reform measures that will help India in improving its rank in the World Bank Group's Doing Business Study. India ranks 142nd out of 189 countries studied. While India's rank in 'getting credit' and 'protecting minority creditors' indicators is 36 and 7 respectively, under other eight indicators India ranks below 100. To bring India within top 50 ranks and Government of India is working in partnership with State Governments. The State Governments of Maharashtra and New Delhi have undertaken significant steps to streamline processes and simplify regulatory environment. A 98 point agenda has been shared with all the State Governments for reducing regulatory burden on businesses and streamline processes. Starting a business made easy

Documents for Export & Import Reduced to just 3

The Doing Business Report, 2015 identifies 11 steps in Delhi and 13 steps in Mumbai requiring 27 and 30 days respectively, for starting a business. The Government of India has, in collaboration with the State Governments of Delhi and Maharashtra, undertaken significant reform measures to reduce the number of procedures and days taken for starting a business.

The Doing Business Report, 2015 identifies 7 documents required for exports and 10 documents required for imports in India. There are a number of non-mandatory documents identified in the Report. DGFT has through Notification No. 114 (RE2013)/2009-2014 dated 12th March, 2015 clarified that only following three documents are required for export of goods from India: i) Bill of Lading/ Airway Bill ii) Commercial Invoice cum Packing List iii) Shipping Bill/Bill of Export Similarly, following three documents will be required for import of goods into India: i) Bill of Lading/ Airway Bill ii) Commercial Invoice cum Packing List iii) Bill of Entry

All procedures identified by the Study have been made online. Employer's registration with ESIC and EPFO has been made realtime and applicants are given registration number immediately. Registration under Shops and Establishment law has also been made online and done same day. In Mumbai, registration for VAT and Professional Tax has been integrated into a single ID eliminating requirement of a separate registration for Professional Tax. Ministry of Corporate Affairs (MCA) has moved an amendment in the Companies Act, 2013 to eliminate the requirement of minimum paid-up capital and common seal for companies. This Bill has already been passed by the Lok Sabha. Further, MCA is working on providing option of selection of company name and obtaining Director's Identification Number (DIN) at the time of incorporation of company. An option will be given to applicants to obtain Permanent Account Number (PAN) and Tax Account Number (TAN) from CBDT and register with ESIC and EPFO at the time of incorporation of company. This process will be completed by 30th April, 2015. These steps will reduce number of procedures and days taken in starting a business and significantly relieve the costs related to it.

To further streamline the procedure of clearing goods at the custom borders of India, an online single window clearance mechanism is being established. In the first phase Customs department has integrated with the Food Safety and Standards Authority of India and Plant Quarantine Department at three ports from 01-04-2015. In the second phase single window will include textiles, animal quarantine, drug controller and wild life clearances.

Streamlining grant of Construction Permits

Easy electric connections

Online payments for ESIC and EPFO

India ranks at an extremely low of 184th in 'dealing with construction permits' indicator. Grant of construction permits is primarily a function of concerned local municipal body. The Governments of Delhi and Maharashtra have made significant reforms in easing out the procedure for grant of construction permits through online application.

Government of Maharashtra has radically reformed the procedure of granting electric connection by reducing the number of procedures to three (from existing seven) and number of days required for connection to 21 (from existing 67). An applicant can now apply online for the grant of connection.

The Doing Business Report, 2015 Counts 12 payments of EPFO contribution and 12 ESIC payments as both processes are identified as manual.

Government of Delhi has launched online application with Common Application Form for residential and industrial buildings on 16th March, 2015. A similar online application form for institutional and commercial buildings is will be rolled out by 30th April, 2015. The new procedure will remove the requirement of running around various departments on the part of applicant as he will now be required to file only one application to MCD and MCD will obtain the required NOCs from the concerned agency. Further, wherever any inspections are required, they shall be conducted jointly by all Department to avoid inconvenience to the applicant. To clarify areas where NOC from Airports Authority of India (AAI) is required, detailed colour coded maps have been put up on the AAI web site for Mumbai, Navi Mumbai and Delhi airports. A similar exercise has been undertaken by the Archaeological Survey of India (ASI) to identify land parcels on which NOC is required from the National Monuments Authority/ASI. These reforms will radically help reducing compliance burden on the applicant by reducing number of procedures and time taken in grant of construction permits.

A similar exercise has been undertaken by Government of Delhi, by allowing connections up to 150 KVA on LT connection. For sub-stations up to 11 KV NOC from Electrical Inspector of Labour Department has been substituted with self-certification by DISCOM. Further, the cost of new LT connection is capped to Rs. 50,000- only. An online application portal has been developed by PWD for granting road cutting permissions to streamline and expedite the process. This will not only reduce time required in grant of a connection in Delhi to 15 days but also significantly reduce the cost of a new connection for the industry. Further, Central Pollution Control Board has vide its letter No. B29012/1/ESS/2014 dated 23rd December, 2014 clarified that there is no requirement for NOC or Consent to Establish from concerned State Pollution Control Board/Committee for new industrial electricity connections.

The Ministry of Labour and Employment has made both processes online with 56 accredited banks. Now these payments can be made online using net banking facilities. Further, the need to file separate returns has been done away with as the Challans for payments are itself considered returns for the month.

Commercial Division and Courts in Delhi and Mumbai India ranks 186th out of 189 countries in 'enforcing contracts' indicator. In order to expedite the dispute resolution process, Delhi and Mumbai High Courts have set up benches into commercial courts. These dedicated commercial benches will help faster disposal of commercial cases in Delhi and Mumbai.

EBiz Platform to provide 14 GoI Services eBiz online portal has been established by DIPP to provide an online single window to businesses for availing various government services. 14 Central Government services have already been integrated with the portal and work on another 12 services is already underway.

For further details kindly contact: Ravinder, IAS, Director, Department of Industrial Policy and Promotion, Udyog Bhawan, New Delhi. +91-11-23063212 [email protected]

In addition to these 26 GoI services the portal will initially provide 24 services from the State of Andhra Pradesh, Punjab, Haryana, Orissa, Maharashtra, Delhi, Uttar Pradesh, Rajasthan and Tamilnadu

Government of India Ministry of Commerce and Industry, Department of Industrial Policy and Promotion (for restricted circulation only)

Ease of Doing Business (1st June, 2015): PART-3

Starting a business made easy

Online approvals for buildings

In continuation of its efforts to facilitate starting of a business, Government of India has, in partnership with State Governments of Delhi and Mumbai, brought significant changes in various provisions.

India ranks at an extremely low 184th in 'dealing with construction permits' indicator. Grant of construction permits is primarily a function of the local municipal body. The Governments of Delhi and Maharashtra have made significant reforms in easing the procedure for grant of construction permits through online application.

Employer's registration with ESIC and EPFO has already been made online and real-time with applicants getting registration number immediately. Registration under Shops and Establishment law has also been made online and is being done on the same day. In Mumbai, registration for VAT and Professional Tax has been integrated into a single ID eliminating the requirement of a separate registration for Professional Tax. While, Maharashtra is allotting TIN within a day, the process has been made real-time by Delhi. However, the most important change comes from Ministry of Corporate Affairs (MCA) which has passed the Companies Amendment Act, 2015 to eliminate the requirement of minimum paid-up capital, common seal and declaration of commencement of business for companies. Further, Further, MCA has introduced Form INC-29 providing option of selection of company name and obtaining Director's Identification Number (DIN) at the time of incorporation of company. Therefore a company can now be created and made active with a single process of applying for incorporation. DIPP has integrated applicants to obtain Permanent Account Number (PAN) and Tax Account Number (TAN) from CBDT and register with ESIC and EPFO at the time of incorporation of company. Now a company can obtain these five registrations through a single process. These steps will reduce the number of procedures and days taken in starting a business and significantly reduce the costs related to it.

Government of Delhi has made available online application with Common Application Form for buildings approval. Now most of the applications are processed online. In case of plotted residential area, the program identifies shortcomings and indicates them immediately. A similar effort has been made by Municipal Corporation of Greater Mumbai. Now, construction permits are granted through online common application form. Further, now there is no requirement for obtaining separate completion and occupancy certificates. Municipal Corporation of Greater Mumbai will issue single completion cumoccupancy certificate.

No monthly returns for ESIC and EPFO Employers’ no longer need to spend hours to deposit payments for Employees’ State Insurance Corporation (ESIC) and Employee’s Provident Fund Organization (EPFO). The Ministry of Labour and Employment has made both the processes online with 56 accredited banks. Now these payments can be made online using net banking facilities. Further, the need to file separate returns has been done away with as the Challans (Vouchers) for payments are itself considered returns for the month.

Energizing in three weeks Government of Maharashtra has radically reformed the procedure of granting electric connection by reducing the number of procedures to three (from existing seven) and number of days required for connection to 21 (from existing 67). An applicant can now apply online for grant of connection. In a similar exercise Government of Delhi, by allowing connections up to 150 KVA on LT, self-certification by DISCOM for sub-stations up to 11 KV instead of an NOC from Electrical Inspector of Labour Department and capping the cost of new LT connection to Rs. 50,000- only has significantly simplified the procedure for getting a new electric connection. An online portal has been developed by PWD for granting road cutting permission to streamline and expedite the process. The time required to grant a connection in Delhi has been reduced to 15 days and the cost of a new connection will also come down significantly for the industry. No NOC or Consent to Establish from State Pollution Control Board/ Committee will be required for a new electric connection. Central Pollution Control Board has clarified vide its letter No. B-29012/1/ESS/2014 dated 23rd December, 2014 in this regard.

For further details kindly contact: Ravinder, IAS, Director, Department of Industrial Policy and Promotion, Udyog Bhawan, New Delhi. +91-11-23063212 [email protected]

Revival and Rehabilitation framework for MSMEs Ministry of MSME, through an Order dated 29th May, 2015, has created a framework for revival and rehabilitation of MSMEs. So far the existing mechanism was working for large industries through Lender’s Forum. An analogous arrangement has been created for MSMEs, wherein the enterprise or any of its creditors may apply to banker’s committee to consider revival or rehabilitation of the enterprise.

eBiz Platform to provide 14 GoI Services eBiz online portal has been established by DIPP to provide an online single window to businesses for availing various government services. 14 Central Government services have already been integrated with the portal and work on another 12 services is underway. In addition to these 26 GoI services the portal will initially integrate 24 services of the States of Andhra Pradesh, Punjab, Haryana, Orissa, Maharashtra, Delhi, Uttar Pradesh, Rajasthan, Tamil Nadu and West Bengal.

Commercial Division and Courts in Delhi and Mumbai In order to expedite the dispute resolution process, Delhi and Mumbai High Courts have set up special commercial benches. Further, in Delhi, one court in each District Court has been designated to deal with commercial disputes These dedicated commercial benches/Courts will lead to faster disposal of commercial cases in Delhi and Mumbai.

DIPP to rank States of ‘Ease of Doing Business’ A 98 point agenda was shared with all the State Governments for reducing the regulatory burden on businesses and streamline the processes. States were asked to implement these reforms within prescribed timelines. The outer limit for completion of these activities is 30th June, 2015. DIPP has decided that it will rank States on ‘Ease of Doing Business’ based on these action points and has engaged KPMG to assist it in developing the methodology for ranking the States. The World Bank Group will also assist DIPP in the process. This study is expected to be released in July, 2015.

Annexure-IV

Starting a business (i)

The Companies Amendment Bill has been passed by both the houses of Indian Parliament. This will eliminate: a) The need for a minimum paid-up capital; and b) The need for a common seal.

(ii)

Companies in India do not need to apply separately for obtaining company name and Director’s Identification Number (DIN) as a combined registration through Form INC-29 has now been introduced.

(iii)

Registration with Employee’s State Insurance Corporation (ESIC) and Employees’ Provident Fund Organization (EPFO) has been made online and real-time, thus reducing the time and effort involved in the process. There is no requirement of filing physical documents anymore.

(iv)

For registration with VAT and Profession Tax, entrepreneurs in Maharashtra now need to go through a single process and operate through single Identification Number as Govt. of Maharashtra has integrated these processes.

(v)

Govt. of NCT of Delhi has started issuing Taxpayer’s Identification Number (TIN) for VAT on real-time basis. Dealers can immediately start their business using the TIN.

(vi)

DIPP is integrating five processes into a single procedure on e-Biz portal. This new procedure will facilitate an applicant to register a company, obtain TAN and PAN and register with ENC and EPFO through a single application and single process.

Dealing with Construction Permit i)

Govt. of NCT of Delhi has launched a common application form for grant of construction permit for residential, industrial and commercial buildings. This will eliminate requirement for approaching each agency individually for NOC. The MCD’s portal also generates date for joint inspection by the agencies. None of the documents need to be submitted physically.

Getting electricity i)

Government of Maharashtra has simplified the procedure for grant of electric connection by reducing the number of procedures from seven to three and the number of days from 67 to21.

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ii)

Notification permitting LT connection up to 200 KW has been issued on 23rd March, 2015, thereby simplifying the procedure for obtaining electric connection up to 200 KW in Delhi.

iii)

Notification for self-certification by distribution companies has been issued on 30.4.2015 for sub-stations up to 11KV, thereby eliminating requirement for inspection by an Inspector of Labour Department, Government of NCT of Delhi.

Paying taxes (i)

The process of making payments of ESIC payments and contributions to EPFO has been made online with 56 credited banks. The Challan of payment shall be considered as return and no separate monthly return is required to be filed.

(ii)

Submission of IT returns acknowledgement or ITR V form to the Income Tax department has been dispensed with. In its place, an Aadhaar-based electronic verification code has been launched to authenticate this document.

Trading across borders (iii) The number of mandatory documents for exports has been reduced to three and notified by DGFT by Notification dated 12-03-2015. (iv) The number of mandatory documents for imports has been reduced to three and notified by DGFT by Notification dated 12-03-2015. (v)

Custom Clearance Facilitation Committees (CCFC) have been formed under the chairmanship of Chief Commissioner/Commissioner of Customs (with representatives of all agencies involved in clearances as members) at all ports/airports for expediting clearance of goods.

(vi) An online message exchange between Customs, Food Safety and Standards Authority of India (FSSAI) and Department of Plant Protection, Quarantine and Storage (PQIS) has been started with effect from 1st April, 2015 as the first step towards launching an online single window clearance system. Enforcing contracts (i)

Commercial divisions have been created in the High Courts of Delhi and Mumbai for hearing commercial cases.

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Improving Regulatory Environment and Ease of Doing Business

Department of Industrial Policy & Promotion Ministry of Commerce & Industry Government of India

‘Make in India’ initiative • • •

Launched on 25th September, 2014 from Vigyan Bhawan, New Delhi Promoting India as an investment destination and global hub for manufacturing, design and innovation Four Pillars of ‘Make in India’ – New Processes (Ease of Doing Business) – New Infrastructure • Industrial Corridors • Industrial Clusters • Smart Cities

– New Sectors (FDI opening up) – New Mindset

Doing Business Report, 2015 • World Bank’s Doing Business Report – Report released in October, 2014 – It ranks 189 countries across the world – India ranks 142nd – India slipped by 2 ranks in 2015 from 140th in 2014

Indicator-wise Rank S. No. 1 2 3 4 5 6 7 8 9 10

Indicator Starting a Business Dealing with Construction Permits Getting Electricity Registering property Getting Credit Protecting Minority Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency

India’s Rank DBR, 2015 DBR, 2014 158 156 184 183 137 121 36 7 156 126 186 137

134 115 30 21 154 122 186 135

Issues in Ease of Doing Business •

• • •

Same information is asked from applicant: available information is scattered in silos which do not talk to each other Trust deficit: No trust on citizens, no trust on other departments (physical submission) Protect thyself: Ask for everything under the sky Lack of understanding: Check lists

Principals of Ease of Doing Business • • • • • • •

Convert from manual to online Eliminate touch points with applicants Prepare checklists, adhere to them Prepare timelines, punish delays Share information across platforms Eliminate unnecessary steps and requirements Promote self-compliance, self-certification

eBiz Project • •

Single online window for Central, State and Parastatal bodies Pilot Phase: – 26 Central Government Services – 24 State Government Services – 10 States • • • • • •

Andhra Pradesh Haryana Maharashtra NCT of Delhi Odisha Punjab

• West Bengal

14 GoI services integrated with eBiz 1. Industrial Licence (DIPP) 2. Employer Registration with ESIC

8. Industrial Entrepreneurs Memorandum (DIPP) 9. Employer Registration with EPFO

3. Company name availability (MCA)

10. Allotment of Directors' Identification Number (DIN)

4. Certificate of company's incorporation

11. Declaration of commencement of business (MCA)

5. RBI's Foreign CollaborationGeneral Permission Route

12. Advance Foreign Remittance (RBI)

6. Permanent Account Number (PAN) 13. Tax deduction Account Number (TAN) 7. Issue of Explosive licence (PESO) 14. Importer exporter code (IEC-DGFT)

Initiatives taken by Government of India •

Licensing (DIPP) – Large number of products in Defence Sector taken off licensing list – Licensing requirement removed for dual use items – Time period for implementing licence extended – Validity of security clearance extended – Partial commencement of production to be treated as commencement for all products – Simplified forms, online application through eBiz

Initiatives taken by MoEF • • •

Online application for environment and forests clearances Requirement of NOC/Consent from State Pollution Control Boards eliminated for new electric connection Requirement of environment impact assessment removed for industrial sheds, schools, colleges and hostels up to built up area of 150,000 square meters

Initiatives taken by MoLE •

• •

Unified portal (Shram Suvidha) for registration of Units for LIN, reporting of inspections , submission of returns and Grievance redressal launched Employer registration with ESIC and EPFO made online Payments for ESIC and EPFO made online with 56 accredited banks

Initiatives taken by MCA •

Amendment in the Companies Act, 2013 introduced to– – –

•

•

Eliminate requirement of minimum paid-up capital Eliminate requirement of common seal Elimination of requirement to file declaration for commencement of business

Incorporation of company made a single step process by merging options for name availability and allotment of DIN Single process for incorporation of company, allotment of PAN & TAN and registration with ESIC & EPFO

Other Reforms • Documents required for import and export reduced to three • Online single window for clearance of goods initiated: • Message exchange with FSSAI & Plant Quarantine • Customs Clearance Facilitation Committee at ports to ensure expeditious clearance of goods 13

Regulatory Environment •

States have a major role in improving regulatory environment for industry • Important issues– Availability of land – Labour regulations and inspection – Environment clearances

Initiatives taken by States •

Maharashtra – – – – –

Simplification of process for new electric connection: reducing 4 processes and 46 days Integration of VAT and Professional Tax registration process: Single ID for both taxes Online registration of shops & establishments Commercial divisions created in High Court Online application for construction permits: Elimination of multiple interaction for applicants

Initiatives taken by States • – –

– – –

NCT of Delhi Real-time allotment of TIN for VAT registration Online application for construction permits for residential and industrial buildings: Elimination of multiple interaction for applicants Online registration of shops & establishments Streamlined process for grant of electric connection: 3 procedures & 15 days Commercial divisions created in High Court

Initiatives taken by States •

Punjab – One stop clearance system (Invest Punjab) setup for investment projects in the State. Invest Punjab also acts as unified state regulator setup for regulatory and fiscal clearances – Online common application form implemented – 131 type of industries exempted from pollution consent requirement • Gujarat – Online pollution consent management system implemented – GIS based land identification system implemented

Ranking of States • •

98 Points in 9 indicators have been shared with States/UTs States to be ranked in July, 2015 on Ease of Doing Business

Goals on ‘Ease of Doing Business’ • •

Making India easiest place to do business Bringing India in top 50 rank of Doing Business Report

Thanks