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Initiatives for ease of doing business in India

Government Initiatives for Ease of Doing Business in India

There is a greater need to take some initiatives for making easy the methods of doing business in India. The government has taken various measures in this aspect regarding simplifying the rules & regulations prevailing in the economy. They laid more emphasis on bringing effectiveness & efficiency in the working of government by introducing information technology system. Following initiatives are taken:

  • Online application services has been introduced under which application for applying Industrial License & Industrial Entrepreneur Memorandum can be filed online using eBiz website. This service is open for 24 hours so that entrepreneurs can file application anytime.
  • Increase in Validity period of Industrial licenses. The license was issued earlier for a period of 2 years has now increased to 3 years granting enough time to license holder. As a result of this extension, they will get sufficient time to procure land & get approval from authorities.
  • Security clearances will be granted to Industry license holder as provided by MHA. The industry license applications shall be given such clearances within 12 week period & they will be valid till 3 years. The exceptions to such clearance grant are Explosives & FIPB This time period will be valid unless there is change in management composition & shareholding.
  • Integration of services with eBiz Portal has been undertaken under which 20 services will function as a single window portal. The purpose is to demand clearances from government & its agencies.
  • Decrease in number of documents required for making imports and exports. The number of documents has been limited to three by issuing a notification in this context
  • Investor facilitation cell has been introduced for providing necessary guidance to investors all the time they are involved in the business.
  • Simplification of Application forms issued for applying Industrial License & Industrial Entrepreneur Memorandum.
  • The growth of manufacturing sector is emphasized & in this context factors that lead to growth of manufacturing sector are considered & discussed in detail by cabinet secretary & its representatives in an interactive session.
  • Exclusion list has been provided that excludes many items specifically from the scope of Industry Licensing. Such items will not require license to deal with. The items which are used by military as well as normal civilians shall also be excluded from Industry licensing.
  • Improvements in regulatory business environment have been undertaken by government. Following steps were taken to make such improvements:
    • Online filing of returns
    • Web portal should include check list of compliances required to be made
    • A single electronic register must be prepared as a substitute of all registers maintained for carrying on business efficiently
    • Approval of HOD for making inspection is required
    • Introduction of self-certification system for businesses that does not involve risk & hazards
  • Integration of ESIC registration with eBiz has been undertaken & steps have been taken to launch this process for public.
  • Frequently asked questions (FAQ) has been introduced by Industry License applicants for providing assistance to investors regarding their queries & problems.

About Prateek Agarwal

I am Chartered Accountant by profession, practicing in Jaipur. I have interest in accounting and taxation field.

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