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.