India

Ease of Doing Business in

India

This page summarizes Doing Business 2014 data for India. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region South Asia
Income Category Lower middle income
Population 1,236,686,732
GNI Per Capita (US$) 1,530
City covered Mumbai
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
134 131 down -3

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Improvement in DTF** (% points)
52.74 52.26 down 0.48

Subnational Data


 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 179 DB 2013 Rank*** 177 Change in Rank down-2
DB 2014 DTF** (% points) 62.74 DB 2013 DTF** (% points) 61.67 Improvement in DTF** (% points) up1.07

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator India South Asia OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
12 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
27.0 16.2 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
47.3 19.8 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in Min. Capital (% of income per capita)
124.4 15.8 10.4
No. Procedure Time to Complete Associated Costs
1 Obtain director identification number (DIN) online 1 day INR 100
2 Obtain digital signature certificate online 1 day INR 400 to INR 2,650
3 Reserve the company name with the Registrar of Companies (ROC) online 2 days INR 1000
4 Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation 3-7 days INR 24,800
5 Make a seal 1 day INR 350
6 Visit an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI) Investors Services Ltd to obtain a Permanent Account Number (PAN) 7 days INR 85 for Fee and INR 5 for Application Form, (if not downloaded)
* 7 Obtain a tax account number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department 7 days, simultaneous with previous procedure INR 55
* 8 Register with Office of Inspector, Mumbai Shops and Establishment Act 2 days, simultaneous with previous procedure INR 2,400 (registration fee) + 3 times registration fee for Trade Refuse Charges (INR 7,200)
* 9 Register for VAT online 10 days, simultaneous with previous procedure INR 500 (Registration Fee) + INR 25 (Stamp Duty) for compulsory VAT registration
* 10 Register for profession tax 2 days, simultaneous with with previous procedure no charge
* 11 Register with Employees' Provident Fund Organization 12 days, simultaneous with with previous procedure no charge
* 12 Register for medical insurance (ESIC) 9 day, simultaneous with with previous procedure no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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