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Ease of Doing Business in

India

India Download Profile (2183.1KB, 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): 51.73

DB 2016 DTF (% points): 51.67

Change in DTF (% points): up0.06

Standard Property Transfer
Property value: INR 5,114,479
City: Mumbai
Indicator Mumbai South Asia OECD high income
Procedures (number) info_outline 7.0 6.6 4.7
Time (days) info_outline 46.5 110.7 22.4
Cost (% of property value) info_outline 6.9 6.9 4.2
Quality of the land administration index (0-30) info_outline 7.5 7.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Conduct a title search at the office of Sub-Registrar of Assurance

    Agency: Sub-Registrar of Assurance

    The purchaser should conduct a search of the property in the Registry and the Revenue Office, noting the location details of the property and the time period to be checked. While investigating the title it should be verified.

    (1) the legal ownership document (i.e. the title document) is in the name of the owner and is duly stamped and registered before the concerned sub-registrar of assurances.
    (2) that on the date of purchase the title of the owner for the preceding 30 years (preferably) shows no mortgage or other encumbrance as still existing on the date of purchase,
    (3) the property is transferable and heritable,
    (4) the transferor is competent and/or authorized to transfer the property,
    (5) the transferee is qualified to be a transferee,
    (6) the object or consideration for the transfer is lawful,
    (7) the transfer has been made and completed in the manner prescribed by law.

    Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be checked.
    If the seller is a Company incorporated under the provisions of the Companies Act, 2013 then it is prudent to take search in the office of the Registrar of Companies to verify whether there is any charge on the property registered under the provisions of Section 81 of the Companies Act, 2013.
    7 days (simultaneous with procedures 2 and 3) INR 15,000-20,000
    * 2

    Ensure that property is clear of all local tax dues

    Agency: Local authorities

    Non-payment of local property tax can result in the property being attached and sold by the local body. The last local tax bill will show the previous dues if any and the receipt of payment will indicate the date on which the payment was made. The receipt is issued by the local body upon receipt of payment.
    7 days (simultaneous with procedures 1 and 3) No charge
    * 3

    Conduct charges search at the Registrar of Companies

    Agency: Registrar of Companies

    In case of companies formed under the provisions of Companies Act, 2013 and/or under the provisions of Companies Act, 1956 as also in case of any Limited Liability Partnership firms, all charges, modification of charges and satisfaction of charges are required to be compulsorily registered with the Registrar of Companies. Searches on the website of the Ministry of Company Affairs can be taken to peruse the charges created.
    1-2 days (simultaneous with procedures 1 and 2) INR 100
    4

    Prepare the final sale deed with the purchaser’s lawyer

    Agency: Lawyer

    The lawyer prepares the final sale deed and then engrosses the document on green paper leaving the date and place blank. This document is then submitted for stamping. The fee for the lawyer varies from transaction to transaction.
    7 days About 1% of the property value (About INR 45,000)
    5

    Pay Stamp Duty on the final Sale Deed through franking at the designated bank.

    Agency: Designated and authorised Banks and Government Revenue Accounting Department for online payment

    Since December 2013 stamp duty and registration fees through electronic secured bank treasury receipt (eSBTR)—an online payment service available round-the-clock has been implemented in Mumbai and entire Maharashtra.Under this system, a customer can log onto the website of the authorized bank, click the link for payment of stamp duty/registration fees, enter the necessary details and pay the duty through the internet banking account. With the printout as proof of the online payment, the customer can walk into the nominated branches of the bank to get the eSBTR. The eSBTR is a receipt with security features, which has been designed by India Security Press, Nashik. “Alternatively, there is also a facility to make the data entry online and make the payment in bank branches. The sub-registrar then has to register the documents attached with the receipt.

    Payment could be made
    1) Online- through credit card, debit card, internet banking for online payment mode. For this purpose various banks have also been authorised authorizing their internet banking facility

    2) through the process of Simple receipt (receipt printed on A-4 size paper). Payment is made to Banks,stamp vendors and post offices also who issue these receipts. Payments can be made through Cash, Cheque, Bank Draft or through electronic payment

    3) ESBTR (Electronic Bank and Treasury Receipt) - Few banks have been authorised to issue ESBTR. Banks accept payment by various modes and then issue these ESBTRs.

    Payment through GRAS system- details at https://gras.mahakosh.gov.in/igr/
    Less than a day (online procedure) 5% of property value
    6

    Execute final sale deed and submit documents to the local office of the Sub-Registrar of Assurances

    Agency: Sub Registrar of Assurances

    The execution of the sale deed in front of the 2 witnesses is commonly done at the same time and place where the buyer submits documents to the Sub-Registrar.
    The documents are submitted to the office of the Sub Registrar of Assurances within whose jurisdiction the property is located. The authorized signatories of the seller and purchaser are required to be present along with two witnesses. Once the document is registered, a distinct document number is assigned to that document. The record of registration is kept in the office of sub registrar of assurance.

    The documents are submitted to the Reader of the Sub-Registrar of Assurances for scrutiny. After scrutiny, the Reader indicates the registration fee required, which is 1% of the transaction value or Rs. 30,000/- whichever is less on the document itself. The due registration fee is to be deposited with the cashier against a receipt. After depositing the fees, the documents are presented before the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. Normally, the Seller hands over the peaceful vacant and physical possession of the property to the buyer simultaneous to the deed being presented for registration. Upon payment of the required registration fees and computer service charges in cash, as per the receipt, the document is returned within 30 minutes of getting the receipt.

    The documentation shall include:
    (1) Document required to be registered (in duplicate)
    (2) Two passport-size photographs of the authorized signatories of both parties.
    (3) Photo identification of each party and witnesses i.e. voters' identity card, passport, identity card issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer.
    (4) Certified true copies of certificate of incorporation of both seller and purchaser.
    (5) Copy of the latest property register card (to be obtained from the City Survey Department) to indicate that the property does not belong to the government
    (6) Copy of the Municipal Tax bill to indicate the year in which the building was constructed
    (7) Copy of PAN Card of Income Tax of the Seller and the Buyer annexed along with the Sale Deed.

    The registration fees can be paid e-Challan on GRAS or e-SBTR through the websites of the authorised participatory banks.
    1 day 1% of market value of the property (Maximum INR 30,000) + INR 20 per page of final sale deed for scanning charges (paid in cash)
    7

    Apply to the Land & Survey Office for mutation of the tile of the property

    Agency: Land & Survey Office

    An application for mutation of the title of the property will have to be made to the City Survey and Land Records office for seeking mutation of the title of the property in the name of the purchaser. The authorised signatory has to submit the duly signed application along with the affidavit, indemnity bond and a notarised copy of the registered Sale Deed. After the assessment of the request for mutation, the City Survey and Land Records office decides the value of the tax on the property and issues a letter of mutation in favour of the purchaser.
    30 days INR 750 (Application fee of INR 100; stamp duty on the Indemnity Bond of INR 500, stamp duty of INR 100 on the Affidavit in the prescribed form and notary fees of INR 50)

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 7.5
    Reliability of infrastructure index (0-8) 2.0
    What is the institution in charge of immovable property registration? Sub-Registrar office
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? No 0.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? No 0.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: www.igrmaharashtra.gov.in under the heading 'Activities' and sub heading 'D...
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: www.igrmaharashtra.gov.in under the heading 'Publications' and sub heading ...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: www.igrmaharashtra.gov.in under the heading Citizen's Charter http://www.i...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Only intermediaries and interested parties 0.0
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 2.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? No 0.0
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Lawyer; Interested Parties.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? City Civil Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? More than 3 years 0.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0