#

Ease of Doing Business in

India

India Download Profile (2180.8KB, pdf)
Region South Asia
Income Category Lower middle income
Population 1,311,050,527
GNI Per Capita (US$) 1,590
City covered Mumbai, Delhi

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 130 131 up
1
55.27 53.93 down
1.34
Starting a Business 155 151 down
4
74.31 73.74 up
0.57
Dealing with Construction Permits 185 184 down
1
32.83 32.83
-
Getting Electricity 26 51 up
25
85.09 79.76 up
5.33
Registering Property 138 140 up
2
50.00 49.97 up
0.03
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 13 10 down
3
73.33 73.33
-
Paying Taxes 172 172
-
46.58 43.17 up
3.41
Trading across Borders 143 144 up
1
57.61 56.45 up
1.16
Enforcing Contracts 172 178 up
6
35.19 32.41 up
2.78
Resolving Insolvency 136 135 down
1
32.75 32.59 up
0.16

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points): 72.41

DB 2016 DTF (% points): 71.83

Change in DTF (% points): up0.58

Standardized Company
Legal form: Private Limited Company
Paid-in minimum capital requirement: INR 0
City:
Indicator Mumbai South Asia OECD high income
Procedure – Men (number) info_outline 14.0 8.1 4.8
Time – Men (days) info_outline 26.0 15.4 8.3
Cost – Men (% of income per capita) info_outline 16.5 13.4 3.1
Procedure – Women (number) info_outline 14.0 8.2 4.8
Time – Women (days) info_outline 26.0 15.6 8.3
Cost – Women (% of income per capita) info_outline 16.5 13.4 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 0.2 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Obtain a digital signature certificate

    Agency: Authorized private agency (Federal)

    The applicant must obtain a Class-II Digital Signature Certificate from a certification agency authorized by the Controller of Certification Agencies. These include private agencies like NIC, E-Mudhra, MTNL Trust line, to which company directors submit the prescribed application form along with notarized proof of identity and address.

    A Class-II Digital Signature Certificate can be obtained for either a period of 1 year or a period of 2 years, and then needs to be renewed for another 1 or 2 years upon payment of renewal fees. Each agency has its own fee structure, ranging from INR 700 to INR 2500. The cost will vary in accordance with the duration of the Digital Signature Certificate. Once the Digital Signature Certificate is obtained, the authorized personnel (directors/manager/secretary) are required to register the same with MCA for statutory e-filing.
    1-3 days INR 700 to INR 2,500 per Digital Signature Certificate
    2

    Obtain director identification number (DIN) online

    Agency: Ministry of Corporate Affairs (Federal)

    In accordance with the Companies Act, 2013, every private limited company must have at least 2 directors, each obtaining a DIN and DSC.

    1) Form DIR 3 has to be filed online with the Ministry of Corporate Affairs (MCA) along with a photograph and scanned copy of supporting documents, i.e., proof of identity and proof of residence not older than 2 months.

    2) Form DIR 3 has to be signed and submitted electronically by the applicant using his or her own Digital Signature Certificate (DSC).

    3) Form DIR 3 has to be verified digitally by: (i) a chartered accountant, company secretary or a cost accountant in practice (Practicing Professional); or (ii) a company secretary in full-time employment of the company or a director of the company in which the applicant is to be appointed as director.

    4) In case the Form DIR 3 is certified by a Practicing Professional and is not identified by the system as a potential duplicate, the DIN will be approved and generated by the system immediately. In all other cases, a DIN application number is generated. The DIN application is then reviewed by MCA officials. In case the MCA officials are satisfied with the application based on the information provided, the DIN will be generated within a month of the date of application. If the eForm is not approved, then status of provisional DIN will appear as "Lapsed."

    Legal basis: Companies (Appointment and Qualifications of Directors) Rules, 2014 and FAQs published by Ministry of Corporate Affairs. The fee for obtaining a DIN number is specified in the Companies (Registration Offices and Fees) Rules, 2014.
    1 day INR 500 per DIN
    3

    Reserve the company name with the Registrar of Companies (ROC) online

    Agency: Registrar of Companies, Ministry of Corporate Affairs (Federal)

    In order to reserve a unique company name, a name search is conducted on the website of MCA and eForm INC-1 is required to be filed pursuant to Section 4(4) of the Companies Act, 2013 and Rule 8 & 9 of Companies (Incorporation) Rules, 2014. The name reservation fee is provided under the Companies (Registration offices and fees) Rules, 2014.

    The process is as follows:
    1. Check availability of the proposed name by checking on the MCA21 portal for other companies or LLPs having similar names. Alternatively, engage a professional (practicing chartered accountant, company secretary or cost accountant) to perform the check on the MCA 21 portal and provide a search report which can be attached to the application.
    2. Prepare the application in eForm INC-1 with all relevant details and declarations. If a professional has been engaged to check availability of name, have the professional certify and digitally sign the eForm.
    3. Upload the eForm INC-1 to the MCA 21 portal and pay fees of INR 1,000 electronically (net banking or credit card).
    4. If the e-Form has been certified by a professional (as described above), the proposed name shall be approved by the Registrar of Companies on a priority basis via the Straight Through Process ("STP"), provided the name is not similar to any existing trademark, any of the words proposed in the company's name does not exactly match any existing company's name and the name does not consist of a single word (other than private limited).
    5. The name, if made available to the applicant, will be reserved for the applicant to use for 60 days from the date of application. If the proposed company is not incorporated during this 60-day period, the approval will lapse and the name will be available to other applicants.
    2-7 days INR 1,000
    4

    Pay stamp duties online, file all incorporation forms and documents online and obtain the certificate of incorporation

    Agency: Registrar of Companies, Ministry of Corporate Affairs (Federal)

    Pursuant to Section 7 (1) of the Companies Act, 2013, and pursuant to Rules 10, 12, 14 and 15 of Companies (Incorporation) Rules, 2014, the following forms are required to be electronically filed on the Ministry of Corporate Affairs website for incorporation purposes:

    a) Form-INC-7 (Application for Incorporation of Company). Scanned copies of the signed Memorandum and Articles of Association of the company, have to be attached to Form-INC-7.
    b) Form-INC-22 (Notice of situation or change of address of the registered office of the company). Proof of registered office address such as conveyance/ lease deed/ rent agreement etc. along with the rent receipts as well as copies of the utility bills (proof of evidence of any utility service like telephone, gas, electricity etc.) depicting the address of the premises not older than two months is required to be attached to Form INC 22.
    c) Form- DIR-12 (Particulars of appointment of directors and the key managerial personnel and the changes among them).

    Fee schedule for a small company of paid-up share capital between INR 500,000 and INR 1,000,000:
    - Filing of the Memorandum of Association: INR 2,000
    - Filing fee for filing the Articles of association: INR 400
    - Filing fee for Form INC-7: INR 400
    - Filing fee for Form INC-22: INR 400
    - Filing fee for Form DIR-12: INR 400
    - Stamp duty: INR 100
    - Stamp duty for Articles of Association: IINR 2,000 (INR 1,000 on every INR 5 Lakhs of authorized capital or part thereof subject to a maximum of 50 Lakhs of Stamp Duty)
    - Stamp duty for Memorandum of Association: INR 200
    5 days on average see comments
    * 5

    Make a company stamp

    Agency: Authorized vendor (Private)

    As per the amendment to the Companies Act 2013, making a company seal is no longer a legal requirement. However, making a company rubber stamp is still commonly used in practice. The stamp is normally required to be affixed by a director upon signing on behalf of the company in order to file several applications relevant to business startup. This includes but is not limited to opening a bank account, application for registration with the Employee State Insurance Corporation (ESIC) and application for a company Permanent Account Numbers (PAN).
    1 day (simultaneous with previous procedure) INR 350-500
    6

    Obtain a Permanent Account Number (PAN) from an authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) or Unit Trust of India (UTI)

    Agency: Private agencies authorized by UTI or NSDL, as outsourced by the Income Tax Department (Federal)

    Under the Income Tax Act 1961, each person must quote his or her permanent account number (PAN) for tax payment purposes and the tax deduction and collection account number (TAN) for depositing tax deducted at source. The PAN is a 10-digit alphanumeric number issued on a laminated card by an assessing officer of the Income Tax Department. Since 2003/04, UTI and NSDL have become the authorized agencies that process PAN registration applications on behalf of the Income Tax department.

    The applicant completes Form 49A (statutory form for applying for PAN), pays the due fees of INR 93 (plus applicable taxes currently at 12.36%) either online or otherwise and submits the application form together with proof of identity, proof of address and 2 recent photographs to the authorized agent/designated service centers for verification. After being allotted a PAN number, UTIISL or NSDL will print the PAN card and deliver it to the applicant.
    7-10 days INR 93 plus service tax
    7

    Open a bank account

    Agency: Bank

    The company must open a bank account. The bank account details must be provided by the company in various post-registration applications, such as registrations for taxes.
    2 days no charge
    * 8

    Register with Employees' Provident Fund Organization

    Agency: Employees Provident Fund Organization (Federal)

    The Employees Provident Fund Organization (EPFO) is a statutory organization under the Ministry of Labor and Employment. The Employees Provident Funds & Miscellaneous Provisions Act, 1952 applies to an establishment, employing 20 or more persons and engaged in any of the 183 Industries and Classes of business establishments, throughout India excluding the State of Jammu and Kashmir.

    Pursuant to launch of OLRE (online registration of establishment portal) by the Employee Provident Fund department, employers are required to apply online for registering their establishment. For verification purposes, the employer shall send the copies of all the documents mentioned in the application form along with the copy of the application generated at the time of submission after the issuance of PF Code intimation letter to the EPFO office.
    7 days on average, simultaneous with previous procedure no charge
    * 9

    Register for VAT online

    Agency: Department of Sales Tax

    VAT online registration is conducted via the website www.mahavat.gov.in.
    After the completed application form is submitted online, an acknowledgment containing the date and time for attending before the registering authority along with code/designation and address of registering authority is generated. The company should print a copy of the completed e-application and submit it along with the acknowledgement to the registration authority for verification and photo attestation on a given date and time along with relevant documents. If the application is correct and complete in all respect along with relevant documents, then the registering authority will generate TIN after verification of the documents. Registration certificate will be printed and issued to the company on the appointed date. The appointment date is usually scheduled in the next 10 days.

    Other accompanying documentation includes:
    - Certified true copy of the memorandum and articles of association of the company.
    - Proof of permanent residential address.
    - Proof of place of business (lease agreement)
    - One recent passport size photograph of the applicant
    - Copy of Income Tax Assessment Order having PAN or copy of PAN card
    - Chalan in Form No. 210 (original) showing payment of registration fee at INR 5000/in case of voluntary RC and INR 500/in other cases
    10 days, simultaneous with previous procedure INR 500 (Registration Fee) + INR 25 (Stamp Duty) for compulsory VAT registration
    * 10

    Register for medical insurance (ESIC)

    Agency: Employees' State Insurance Corporation (Federal)

    As per the Employees' State Insurance (General), Form 01 is the form required to be submitted by Employer for registration. The Employer Code Number issued will be included in the "intimation letter" which is sent by post to the employer. Employers can now submit application online for registration under ESI Act on the ESIC website (www.esic.in).

    The Employee’s individual insurance is a separate process and occurs after Employer’s registration. The Employer is responsible for submitting the required Declaration Form and employees are responsible for providing correct information to the employer.
    9 days, simultaneous with previous procedure no charge
    * 11

    Obtain a tax account number for income taxes deducted at source from the Assessing Office in the Mumbai Income Tax Department

    Agency: Private agencies authorized by NSDL, as outsourced by the Income Tax Department (Federal)

    The tax deduction and collection account number (TAN) is a 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax, as per Section 203A of the Income Tax Act.

    Any authorized franchise or agent appointed by National Securities Depository Services Limited (NSDL) can accept and process the TAN application. TAN applications can be made either online through the NSDL website www.tin-nsdl.com or offline. The application must be filed using Form 49B and submitted at any TIN Facilitation Center authorized to receive e-TDS returns. The processing fee is INR 55 (plus applicable taxes). After verification of the application, it is sent to Income Tax Department which issues the TAN to the applicant. The national government levies the income tax.
    7 days, simultaneous with previous procedure INR 55 application fee plus service tax
    * 12

    Register with Office of Inspector, Mumbai Shops and Establishment Act

    Agency: Municipal Corporation of Greater Mumbai

    According to Section 7 of the Bombay Shops and Establishments Act, 1948, the establishment must be registered as follows:
    - Under Section 7(4), the employer must register the establishment in the prescribed manner within 30 days of the date on which the establishment commences its work.
    - Under Section 7(1), the establishment must submit to the local shop inspector Form A and the prescribed fees for registering the establishment. Supporting documents must be attached, including a certified true copy of the company's PAN Card, TAN Allotment Letter, Certificate of Incorporation, Memorandum and Articles of Association, a list of company directors, their particulars and copies of their PAN Cards.
    - Under Section 7(2), after the statement in Form A and the prescribed fees are received and the correctness of the statement is satisfactorily audited, the certificate for the registration of the establishment is issued in Form D, according to the provisions of Rule 6 of the Maharashtra Shops and Establishments Rules of 1961.

    Since the amendments in the Maharashtra Shops & Establishment (Amendment) Rules, 2010, the Schedule for fees for registration & renewal of registration (as per Rule 5) is as follows:
    0 employees: INR 120
    1 to 5 employees: INR 360
    6 to 10 employees: INR 720
    11 to 20 employees: INR 1,200
    21 to 50 employees: INR 2,400
    51 to 100 employees: INR 4,200
    101 or more: INR 5,400.

    In addition, an annual fee (three times the registration and renewal fees) is charged as trade refuse charges (TRC), under the Mumbai Municipal Corporation Act, 1888.
    2 days, simultaneous with previous procedure INR 1,200 (registration fee) + 3 times registration fee for Trade Refuse Charges (INR 3,600)
    * 13

    Receive inspection and obtain the Shops and Establishments registration certificate

    Agency: Office of Inspector, Municipal Corporation of Greater Mumbai

    After applying for registration under the Shops and Establishments Act by visiting the nearest Citizen Facilitation Center (CFC) of the Municipal Corporation of Greater Mumbai to file the duly completed and signed Form A, along with the required documents and fees, the application is assigned to and processed by Department Head (Sr.Inspector) at the concerned Ward.

    After site inspection and approval of the application the Registration Certificate is issued to the applicant.
    2-6 days, simultaneous with previous procedure no charge
    * 14

    Register for profession tax

    Agency: Commissioner of Profession Tax, Department of Sales Tax

    According to section 5 of the Profession Tax Act, every employer (not being an officer of the government) is liable to pay tax and shall obtain a certificate of registration from the prescribed authority.

    The application form, duly completed can be submitted online. An acknowledgment containing the date and time for attending before the registration authority along with the code/ designation and address of the registration authority will be generated. The company should take a print of the copy of the completed e-application and the employee/ person applying on behalf of the company should affix his signature at relevant places and then submit the printed copy of the filled e-application form along with the acknowledgment to the registration authority for verification on the given date and time along with relevant documents. If the application is correct and complete in all respects, then the registration authority will generate TIN (registration/enrolment number under the Profession Tax Act) after the verification of the documents. Registration certificate will be printed and issued to the company on the appointed date.

    Documents required to be provided with the application form include:
    - copy of the memorandum and articles of association of the company;
    - proof of place of business: Proof of ownership of the premises namely, copy of the property card or ownership deed or agreement with the builder or any other relevant documents;
    - copy of the PAN and/ or TAN;
    - proof of residence of the signatory to the application;
    - bank account number, bank and branch name, and blank cancelled cheque leaf of the bank account.
    2 days, simultaneous with previous procedure no charge

    * Takes place simultaneously with previous procedure.