May 6, 2015
Dear friends Last couple of months the Central Government has been focusing on clearing pending legislative agenda by taking few actions on ease of doing business and issuing number of circulars to remove difficulties in compliance of Companies Act, 2013. Effective 1 May, 2015 with a single filing, Incorporation can be completed (obtaining Director Identification Number, name availability, Incorporation, obtaining Permanent Account Number with the income tax department) and is expected to reduce time frame to few days from the current timeline of 25-30 days. Cabinet has also approved:
- the dispensation from filing of Commencement of business.
- rationalizing the procedure for laying draft notifications and granting exemptions to various classes of companies or modifying provisions of the Act in Parliament, in order to ensure speedier issue of final notifications.
- Risk appetite of investors in India for the IPOs is far less.
- Valuation – Indian markets cannot give the valuation that can fetch them in developed markets.
- The product and services that are being offered are to the global community hence waned to list globally recognized markets.
- Ease of doing business including transparent tax mechanism.
- Solid IPR protection.
- Incentives to startups like in Singapore, UK etc.,