Business

Published: Mar 21, 2023
Updated: Mar 21, 2023

Role of ROC's to be reduced in a bid to promote Ease of doing business in the country

The Indian government is striving towards digitizing the process of company incorporation by reducing the role of the Registrar of Companies (ROCs) in the process. The aim is to make the process more transparent and efficient, leading to a more business-friendly environment in the country.

Currently, the process of incorporating a company in India involves the submission of numerous documents and the payment of various fees. The ROC is responsible for scrutinizing these documents and ensuring that they are in line with the regulations and guidelines laid down by the government. This can often result in delays and bureaucratic hurdles, which can discourage entrepreneurs and investors from starting a business in the country.

Company formation process to be digitised ; "Central Processing Centre" proposed to be set up"

To address these issues, the Ministry of Corporate Affairs (MCA) has been taking steps towards digitizing the process of company incorporation. In 2018, the MCA launched the SPICe (Simplified Proforma for Incorporating Company Electronically) form, which allows entrepreneurs to incorporate their companies online. This form incorporates the DIN (Director Identification Number) application, name reservation, incorporation, and PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) application processes

In addition to the SPICe form, the MCA has also launched a web-based form called AGILE- PRO (Application for Goods and Services Identification Number, Employees State Insurance Corporation Registration Plus Employees Provident Fund Organisation Registration). This form allows new companies to register for GST, ESIC, and EPFO at the time of incorporation, streamlining the process and saving time and effort.

The MCA has also taken steps to reduce the role of ROCs in the process of company incorporation. In October 2019, the MCA announced that it would be reducing the number of forms required for incorporation from 10 to 6. This move was aimed at reducing the burden on ROCs and speeding up the process of company incorporation.

Furthermore, the MCA has also introduced the Companies (Incorporation) Amendment Rules, 2020, which allows new companies to be incorporated without the need for a registered office address. This move was aimed at providing flexibility to entrepreneurs and startups, who may not have a fixed office address at the time of incorporation.

The Indian government's efforts towards digitizing the process of company incorporation are a step in the right direction. By reducing the role of ROCs and introducing online forms and processes, the government is making it easier for entrepreneurs and investors to start businesses in the country. This, in turn, will lead to a more business-friendly environment and a boost to the Indian economy.