70 REFORMS TO BOOST EASE OF BUSINESS

70 REFORMS TO BOOST EASE OF BUSINESS   The Department for Promotion of Industry and Internal Trade (DPIIT) routinely evaluates the progress made under the “Ease of Doing Business” initiative across a number of factors in cooperation with the relevant…
May 6, 2025Posted inNews

70 REFORMS TO BOOST EASE OF BUSINESS

 

The Department for Promotion of Industry and Internal Trade (DPIIT) routinely evaluates the progress made under the “Ease of Doing Business” initiative across a number of factors in cooperation with the relevant Ministries/Departments and States.

 

The following is a summary of the actions taken by DPIIT to remove obstacles to the implementation of business reforms:

 

  1. Nodal Departments were found based on a variety of criteria, and task forces were established to track the advancement of corporate reforms.
  2. Reform implementation is frequently assessed to aid with the removal of implementation barriers.
  3. To raise awareness, reforms are distributed to users and other stakeholders.

Users and responses provide feedback often, which is used to pinpoint implementation flaws and the necessary corrective actions.

 

The specifics of accelerated processes for small enterprises to enhance the business environment:

 

  1. World Bank’s Assessment of the Business Environment

 

On October 31, 2018, the World Bank published the Doing Business Report (DBR), 2019. India is ranked 77th out of 190 nations according to the Doing Business Team. India has climbed 23 places from its DBR 2018 ranking of 100. The DBR evaluates 190 economies and includes 10 metrics that encompass a business’s lifespan. 

 

Following are some of the significant adjustments the government has made to the business environment in the nation, broken down by indicator:

 

  1. Establishing A Business:

 

  • The Companies (Amendment) Act of 2015 abolished the minimum capital requirement for both public and private companies.

Merged five separate applications—name reservation, company incorporation, director identification number (DIN), permanent account number (PAN), and tax deduction/collection account number (TAN)—into a single form called SPICe (Simplified Proforma for Incorporating Company Electronically).

 

  • R.U.N. (Reserve Unique Name), a new and streamlined web service for name reservations, has been launched. As a result, it is no longer necessary to reserve a name using a Digital Signature Certificate (DSC).

 

  • Companies with authorised capital up to INR 15 lakhs pay no incorporation charge.

 

  • There is no longer a need to print out real PAN cards. Additionally, the Certificate of Incorporation (CoI) contains a reference to PAN and TAN, which is regarded as acceptable documentation for PAN and TAN.

 

  • On the ShramSuvidha Portal, EPFO and ESIC can be registered for online and in one place.

 

  • The Mumbai Shops & Establishments Act offers real-time registrations without any fees or inspections.

 

  • Removed the demand for bank account information for GST registration.

 

Dealing with Construction Permits (ii) 

 

  • In order to eliminate the need for visitors to visit each department separately, an online single window system has been implemented in Delhi (by Municipal Corporations in Delhi) and Mumbai (by Municipal Corporation of Greater Mumbai).

Delhi has implemented the 2016 Unified Building Byelaws.

 

  • In Delhi, deemed approvals have been implemented if approvals are not given within predetermined periods.

 

  • Buildings are now categorised according to risk in order to expedite the approval of building plans, inspections, and the issuance of occupancy-cum-completion certificates.

 

  • In Delhi, e-undertakings have taken the place of the requirement for providing notarized certificates or affidavits for building plan approval.

 

  • In Delhi, a single joint inspection has taken the place of many inspections at the completion stage.

 

  • For water and sewer hookups, road cutting and restoration have been made simpler.

 

iii) Obtaining Electricity

 

  • There are no longer any procedures for the Electrical Inspectorate (in Delhi) to assess internal wiring.

 

  • In electrified districts of Delhi, service line rates for low tension loads up to 150 KW have been restricted to INR 25,000.

 

  • In Delhi, the utility’s time required to complete external connection work has decreased.

 

  • Receiving Credit

 

  • Secured creditors receive payment in full prior to other claims, such as labour and taxes, following the liquidation of a business.

 

-Payment of Taxes

 

  • The country-wide Goods and Service Tax (GST) has taken the place of 17 previously existing indirect Central and State taxes. The GST now incorporates all of the former sales taxes, including the central sales tax, CENVAT, state VAT, and service tax. If these taxes are combined, the cascading effect of taxes will be lessened and the percentage of taxes paid on inputs that can be credited will increase.

 

  • For businesses with a revenue up to INR 250 crore, the corporate income tax rate has been lowered from 30% to 25%.

 

  • Social Security contributions can now be paid electronically, making it simpler to make a return payment.

 

  • EPF payment has been made electronically required.

 

  • In March 2017, administrative fees for The Employees’ Provident Funds Scheme, 1952 (EPFS) were lowered from 0.85% to 0.65% of the monthly salary. Administrative fees of 0.01% for Employees’ Deposit Linked Insurance (EDLI) have been eliminated.

 

  •   Trading Internationally

 

  • Through a number of initiatives, including the deployment of electronic container sealing, upgrading port infrastructure, and enabling electronic submission of supporting documents with digital signatures, time and cost associated with exporting and importing have been decreased.

 

  • Improvement of risk-based inspections, whereby only around 5% of items are physically inspected, for both imports and exports.

 

  • With the adoption of the Advance Bill of Entry, importers are now able to begin the customs clearing process before the arrival of the vessel.

 

  • A total of 15 new Rubber Tyre Gantry Cranes have been added to the NhavaSheva Port in Mumbai to modernise the existing equipment. With an increased annual capacity of 2,400,000 TEUs, Phase 1 of the Fourth Container Terminal at the Jawaharlal Nehru Port Trust was finished in February 2018.

 

  • With an extra yearly capacity of 1,300,000 TEUs, the new container terminal, Adani CMA Mundra Terminal Private Limited, has been fully operational since June 2017.

 

  • Under the Single Window Interface for Trade (SWIFT), an online application system called e-Sanchit has been put into place. It enables traders to electronically submit all supporting documents with digital signatures.

 

Vi Implementing Contracts

 

  • The creation of case measurement reports for local courts is now possible thanks to the National Judicial Data Grid.

 

  • In order to establish commercial courts at the district level, the Commercial Courts Act 2015 was changed to lower the financial jurisdiction of commercial courts from INR 1 crore to INR 3 lakhs. This will facilitate a quicker resolution of business conflicts and shorten their duration.

 

  • Dealing with Insolvency

 

  • Adopted in 2016, the Insolvency and Bankruptcy Code included a reorganisation process for corporate debtors and made it easier for the debtors’ business to continue throughout insolvency proceedings.

 

  • To handle restructuring and insolvency proceedings effectively, professional organisations have been established.

 

  • Under the IBC, a time-bound resolution process is followed, and liquidation is the last option.

 

  • A creditor has the right to contest decisions of the liquidator accepting or rejecting claims against the debtor made by the creditor itself and by any other creditors, according to a 2016 amendment to Section 42 of the Insolvency & Bankruptcy Code.