Newer, Faster Approval Procedure for Businesses Underway
Apr. 19 – India will soon have a system in place that will simplify the process of approval for business projects, according to a government official. It will not only encourage investors to invest in India but also young entrepreneurs to start up their own businesses. Currently, each and every business needs to go through a cumbersome series of approvals before it actually becomes a functioning firm.
In all, 35 different sets of approval are required from authorities before setting up a business in India. The process includes seeking approval from municipalities, state government agencies and the central government’s authorities. The process also requires registration with the authorities responsible for collecting VAT and income tax, as stipulated by the Companies Act and the Shops & Establishment Act.
Under the new, significantly more streamlined system, any businessperson seeking approval will get the nod through an e-business portal with only a few clicks of a mouse. Applicants can also track their applications as well the time it will take to get approved by the authorities.
Two years ago, Infosys Technologies was extended a contract to put this e-portal plan in place. Development of the new system is expected to be complete by the end of 2011, with an initial launch in the southern state of Andhra Pradesh at roughly that same time.
Although the e-business portal would also work with export and import related registrations, a separate platform for trade-based industry is currently in the works.
The commerce and industry ministry is also planning on setting up a National Manufacturing Policy (NMP) to help businesses speed up their closing process. In the proposed restructuring of National Manufacturing & Investment Zones, the government is considering allowing new methods to settle the assets of a sick company quickly.
The plan is currently in its final stages, and under review by the Prime Minister.
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