Time taken to incorporate a company in India falls from three months to one hour…
About a year back, I wrote a post on this very blog titled ‘Starting up Business in India– Beware of the ROC redtape!‘. This was basically a narrative, about how I had to spend three (exasperating) months in getting our startup registered with the office of the registrar of companies (ROC), New Delhi, as a private limited company. I must inform you that, to this day, that post remains the most popular post on this blog, attracting readers from various corners of the world. So much so that, if you Google for ‘Starting a company in India ‘, a reference to this post, is ranked number one amongst the 106,000,000 search results that Google throws up.
But, in what can only be described as a mind boggling turn of events, the Economic Times carried a report today about how it took a software company in Delhi, less than an hour to get their company registered with the ROC office. The software company, Corporate Professionals eSolution Pvt Ltd, got registered from the promoter’s own office in an hour, with some synchronized legwork thrown in at two government offices.
This is how, Pavan Kumar Vijay, the company’s promoter narrated the process: “With all documents ready, we applied online for the approval of the company’s name at 10.41 am. The name was approved in a few minutes. Then the memorandum and the articles of association were stamped and the power of attorney notarized at the Tis Hazari court by 10.50 am. The scanned documents with digital signatures were then filed electronically to the Registrar of Companies (RoC). Soon after, the certificate of incorporation was obtained at 11:40.”
For reading the article, check out this link.
The article mentions that the government plans to further simplify the process by introducing an electronic stamping system, which should bring down the time taken for incorporation to 20 minutes. I am lost for words as I read this story…
Its possible that this is an extreme case but the fact is that, information technology is bringing about a paradigm shift in the way even our governments operate. It is leading to greater transparency, faster throughputs and reduced red-tapism.
Much as we never miss out on an opportunity to criticize the government at the drop of a hat, on this occasion, I can’t help congratulate our government for enabling this. Full marks to them for allowing something like this.
Update- Aditya (who works with TCS) has informed me that the technology for this new incorporation process was provided by TCS. I think this is a PATHBREAKING effort by TCS and deserves to be applauded. Unfortunately, none of the reports I have read about this (including the ET one) cared to mention this.
29 comments
Yes! In fact, this is something which can be said to be a world record. We have searched the Internet and nowhere someone claims that a Company has been incorporate in one hour. However, this was a concerted effort to test the newly launched system of Govt. of India (www.mca.gov.in) where the Registrar office has been converted into online registry.
This has been made possible by Corporate Professionals (www.corporateprofessionals.com). We are a multidisciplinary consulting Company based at New Delhi, India. Earlier, we also incorporated a Company in one hour before launch of online registry.
We are also advising various national and foreign companies in incorporations, setting up business in India, accounting, taxation, legal and secretarial consulting, etc.
Hi Girish,
Thanks for dropping by at this blog.
Yes, even if this was a test bed , it was a stupendous effort. I have gone through the process myself and know how things tend to get help up for the smallest of reasons.
Congratulations on achieving this ‘feat’.
I think it’s also about the cities. For instance, when I registered my firm five years ago in Mumbai, it was a pretty painless process. We enlisted the help of a company secretary, who got all the documents in order, and we simply went to the ROC for the signing formalities. While not exactly 20 minutes, it was more a matter of days than even weeks.
Look under the hood and you’ll find that while the govt wanted to do it for a long time no one thought it could be done. Today it is built, owned and run by TCS; the only people who not only thought it can be done but also figured how to do it. I only hope they talk about it as well or it will be another story like NSE!
Aditya,
Thanks for pointing out the fact that TCS is the brain behind this move. This is a PATHBREAKING effort and it shows that IT can bring about paradigm shifts in the way we live our lives.
You are right in pointing out that nobody probably knows that TCS enabled this to happen. For instance, even the ET article (linked to) in the post does not mention this. I have also read other reports about this but don’t recall reading about TCS at all. On the other hand, every time a big software company signs a 300 million dollar outsourcing deal, that always gets to the newspapers.
I would like the readers of this blog post to know about this fact, hence am updating the post with this info.
regards
amit
I also agree that TCS has made the platform possible which would help India in achieving a better ranking in “Doing business” Index of World bank.
We also had the same objective while making this possible. With great economic growth, the Indian red tapism must go and anyone willing to do business in India must be able to set up within days. We are working on that direction.
Nice to know about the pathbreaking step (or i should call it a “stunt”)…not so sorry for the sarcasm in the statement….
I think nobody tried to find out the inside story….Actually NOTHING of this sort has happened ever…MCA21 (Ministry of Comapny Affairs project) for online filing of the companies in india is a very ambitious project which TCS is handling as you all know and the news regarding filing of Corporate Professionals eSolutions in 1 hour is not more than a publicity stunt as it proved to be great for all of them (Read..TCS, ROC and Corporate Professionals obviously.)…
and do check corporate professionals website you can yourself know what i am talking about
what i can say here is that ROC with TCS has surely made great changes in the system and now a days filing of companies is not that painful as it was earlier but still it takes DAYSS…to get your company registered till today.
Ashish,
Couldn’t understand the reason of saying negative. This has actually happened and the incorporation happened in 60 minutes flat. Many newspapers and TV channels covered it and the MCA Minister has given public statements.
There is no need to challenge it.
Can someone explain to me the step by step procedure to start a LLC (or Indian equivalent) in India. Your comments and thoughts would be greatly appreciated
Hi Amit Ranjan,
how r you doing buddy, long time? I was searching for opening a company and saw u r the pioneer for starting this blog… cool Thanks a lot … this definitely helped me!!!
-Amit Jesani.
I have similar question as Amjad had. Would someone care to answer it? Would be really helpful for me.
Hi Amit, it’s an useful and interesting post. I am glad that our govt officers have right attitude to care about businesses.
Would someone send me an e-mail address of an Agent in India whom I can correspond with and set up a company/bank account/etc.
ostlerne at hot mail com
I’m in Afghanistan working as a Civilian Contractor and need a place to have my automatic paychecks deposited and then to invest in Indian Mutual Funds or others recommended … possibly by the same Agent.
Thank you.
ya with e filing and MCA-21 , things have become very simple. Time taken has also reduced . We can inspect company documents siiting in our office.
Jalaj
hi,can anyone point me to a company that is able to set up a private limited company for me. Any website would be usefull. I can be reach at j.singh@s-t3.com
Well, I am appalled to read this article. Yes - TCS could have developed the MCA portal. The case that someone is talking about in terms of being able to incorporate in less than couple of hours could be a case where officials baby sat one instance all the way from start to finish for measurement purposes.
The way to find out the truth is to ask ourselves, can an average joe do the incorporation without anyone baby sitting in less than a couple of hours. It should not be judged based on an one off incident.
I couldnt agree more to the article titled ‘Starting up Business in India– Beware of the ROC redtape!‘.
I have been trying to get a company incorporated for the last few months and everytime I talk to a service provider I pull myself back in disgust because each and every service provider is stating that we need to bribe the officials so they will do their work.
We can introduce portals, we can brag - but the fact that the environment is still not a conducive one for someone to conduct business is still glaring at each and everyone who wants to do business in India.
My experience has been unpleasant when it comes to dealing with red tapes in India. I have been exposed to entrepreneurial climate of other developed countries. But the culture and people make all the difference and Technology cannot replace it.
Hi,
I have came to this blog after a long time and finding that people are mixed feelings about incorporation in India. However, I must tell that Indian government is trying to make the process more transparent.
There still be a need for advisor since a foreign person must be advised about the form and type of organisation which he wish to set up in India.
Since we are working on best incorporation and setup services in India, anyone requiring any information may contact me at girish@indiacp.com.
Girish Narang
I am a NRI living in the United States. I was working in a Senior Position in Texas Instruments and chose to go on my own in April 2007. I worked with a law firm in Delhi which was exceedingly good and I was able to incorporate my company real fast.
Would be happy to lend a helping ear to the inexperienced at gdjj81@rediffmail.com.
I recommend that you all visit http://4indianbusiness.blogspot.com/2007/10/starting-business-in-india.html to get first hand perspective on incorporating companies. The article is sensible and points to the nittygrities involved in forming a new company under the new MCA 21
I want to open a Distance Learning Course University in Delhi, so could you please let me know the process how to register the University.. I shall be highly thankfull to you..anyway thanks in Advance.
Hi,I would like a Pvt. Ltd. company. can anyone told me to a company that is able to set up a private limited company for me.
hi, It was intersting to know that a company can get ready within an hour. I want to really know is it possivle to register a company within a week?
In Portugal there is a service for a few years now called “Company in one hour”, that does precisely that. Form a company in less than one hour. It can be 10mn if you have the docs with you.
Regards (xptomarketing@gmail.com)
Hi. I would like to know the procedures of how to set up baby sitting centre in Mumbai??
Though its too far from the punchline “Business at the speed of thought”, the initiative taken by Registrar of Companies to embrace IT and hosting online portal had made company incorporation a faster and transparent job.
We at (www.vkbajajassociates.com) help clients to establish companies in India and facilitate in getting required approvals from Government and other institutions.
Interesting post !!! thanks for the help Ranjan.. I never thoughts its so easy to register a company in india now.
Thank you for the auspicious writeup. It in fact
was a amusement account it. Look advanced to more added agreeable
from you! By the way, how can we communicate?
Yes! And that same shitty work is taking months for me because contract of website management moved from tcs to infosys.
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