Ease of Doing Business in India Parameters!
Starting a Business:
India has made starting a business easier. The government is helping by fully integrating multiple application forms into a general incorporation form. India has also replaced the value-added tax with the GST (Goods and Services Tax) for which the registration process is faster and hence the whole process of opening a startup becomes easier. Simultaneously, Mumbai, Maharashtra has abolished the practice of site inspections for registering companies under the Shops and Establishments Act for promoting startups in India. Moreover, the government has reduced the time needed to register a new business to 30 days. However, business owners are still required to take up more than 10 procedural steps to start a business in India, compared to only five steps required in OECD countries. GoI needs to further consolidate the procedures under a single-window clearance system to minimize cumbersome procedures. The use of technology in this area can bear excellent results under the e-Governance and Digital India NSE 0.00 % endeavors.
The Delhi Electricity Regulatory Commission has reduced charges for low voltage connections. This has been a great help to the people of Delhi. Getting electricity was also made easier through a reduction in the time for the utility to carry out the external connection works.
India has strengthened its access to credit by amending its insolvency law. Therefore, secured creditors now have absolute priority over other claims within insolvency proceedings. This reform has affected both Delhi and Mumbai.
India has made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country. The government has also made paying taxes less costly by reducing the corporate income tax rate and the employees’ provident funds scheme rate paid by the employer. This reform applies to both Delhi and Mumbai.
Labor Market Regulation:
India (Mumbai) changed regulations pertaining to weekly holiday work, overtime hours and paid annual leave.