Relaxed norms for setting up firms to help improve India's ranking

New Delhi: The government's initiatives such as relaxed norms for company incorporation, and removing requirement of a bank account for GST registration will help India further improve its ease of doing business ranking of the World Bank this year, a senior official has said.

"Several steps have been initiated by the government this year on all the ten parameters. It will significantly help improve India's ranking this year," the official said.

In its annual 'Doing Business' report, the World Bank ranks nations based on 10 parameters relating to starting and doing business in a country.

These parameters include ease of starting a business, construction permits, getting electricity, getting credit, paying taxes, trade across borders, enforcing contracts and resolving insolvency.

The next report is expected to be released in October 2019. India improved its ranking by 23 places to the 77th position in the 2018 report.

Other steps, which the government has taken, include clubbing of several forms into one; elimination of fee for incorporation of companies where authorised capital is up to Rs 15 lakh; removal of company seal or rubber stamp; and combined registration for EPFO and ESIC.

The government official added that several reforms have been implemented to improve the trade experience of companies.

These reforms include introduction of a single window for all import and export transactions, integration of all stakeholders such as port and terminal operators at a common platform and fast-tracking clearances of consignments at ports.

The government has launched 'PCS1x', an upgraded version of the e-commerce portal for Port Community System (PCS), which intends to integrate 27 maritime stakeholders at a common platform.

Further, India has reduced the time and cost of exports and imports through various initiatives, including the implementation of electronic sealing of containers, upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures.

India is aiming to improve its ranking within top 50th in the coming years. Improving ranking helps a country to provide a better investment climate for investors.