EASE OF DO­ING BUSI­NESS INI­TIA­TIVE THE DAWN OF A NEW COR­PO­RATE IN­DIA

The Smart Manager - - Front Page -

One click on the web­site of Min­istry of Cor­po­rate Af­fairs and the Hon­ourable Prime Min­is­ter of the coun­try greets with a smile. His smile is one of achieve­ments, and that too not a sin­gle one but on mul­ti­ple fronts. Of all these achieve­ments im­pact­ing the growth and de­vel­op­ment of the cor­po­rate arena, one that has been grab­bing max­i­mum eye­balls is the ‘Ease of do­ing busi­ness’ (EODB). While the first do­ing Busi­ness Re­port for the year 2003 was pub­lished in 2004, the con­cept caught the fancy of the In­dian pol­icy mak­ers only in the last few years. The­o­ret­i­cally, the Ease of Do­ing Busi­ness In­dex takes into ac­count al­most all the reg­u­la­tory as­pects fac­ing the in­cor­po­ra­tion and op­er­a­tion of a busi­ness en­ter­prise. The cor­po­rate, the in­dus­try and the academia had al­ways com­plained of lag in the reg­u­la­tory mech­a­nism lead­ing to de­lays in the ini­ti­a­tion of any busi­ness. Is­sues fac­ing ranged from mul­ti­ple pro­ce­dural as­pects to va­ri­ety of reg­u­la­tory author­i­ties and red tapism even, to name a few. The le­gal front too looked hazy with plethora of laws de­mand­ing n num­ber of pro­ce­dures to be fol­lowed. Each as­pect brought with it a long check­list, of­ten un­man­age­able with­out the help of a sea­soned pro­fes­sional. Not only were the en­try pro­ce­dures or con­tract for­ma­tion, be­yond the un­der­stand­ing, the clo­sure of a busi­ness en­ter­prise, near to im­pos­si­ble. Ac­cord­ing to the Do­ing Busi­ness Re­port, 2004, while it took less than six months to go through bankruptcy pro­ceed­ings in Ire­land and Ja­pan, the same pro­ce­dures would elon­gate for more than 10 years in Brazil and In­dia. The av­er­age time taken to start a busi­ness back then ranged be­tween 88 to 90 days. The present day busi­ness sce­nario has come a long way through. Terms like Gov­ern­ment Process re-engi­neer­ing adore the pol­icy struc­tures as far as the busi­ness reg­u­la­tory mech­a­nism is con­cerned. Bring­ing down the num­ber of days re­quired to com­mence a busi­ness from 88 to 26 in the 2017 re­port, the In­dian reg­u­la­tory en­vi­ron­ment has come a long way through. Presently, Gov­ern­ment of In­dia has ini­ti­ated a fur­ther re­duc­tion of the time in­volved in the com­mence­ment of busi­ness, down to one sin­gle day. Es­tab­lish­ment of Cen­tral Reg­is­tra­tion Cen­tre for pro­vid­ing speedy in­cor­po­ra­tion re­lated ser­vices in line with global best prac­tices, sim­pli­fi­ca­tion and ra­tio­nal­i­sa­tion of Act and Rules, launch­ing the SPICe forms, in­te­gra­tion of MCA21 sys­tem with CBDT; all of these are some of the point­ers of the ini­tia­tive taken by the GoI to­wards mak­ing the process of com­mence­ment and op­er­a­tion of busi­ness eASY. In an emerg­ing econ­omy like ours and the dy­namic cor­po­rate sce­nario, both in­side and across the bor­ders, the role of pro­fes­sion­als can­not be side­lined. Var­i­ous as­pects and ar­eas af­fect the small and medium en­ter­prises as they find op­er­at­ing ground in big cities. From start­ing a busi­ness, in­volv­ing multi-lev­elled pa­per­work, avail­ing credit to mak­ing cross-bor­der trans­ac­tions, and re­solv­ing in­sol­vency, the role of pro­fes­sion­als has also en­hanced im­mensely. While the EODB ini­tia­tive may have re­duced the time taken at the ‘gov­ern­ment’ end by leaps and bounds, the ac­tiv­i­ties en­tail­ing a process are here to stay and so is the work for pro­fes­sion­als like Com­pany Sec­re­taries; the only dif­fer­ence in sit­u­a­tion, then and now, be­ing the fact that the pro­fes­sion­als can­not af­ford to sit back and re­lax till the time, a doc­u­ment gets a nod or an ap­proval re­ceives a ‘go’ sig­nal. The need of the hour for them is to gear up and be ready to catch with the speed of the pol­icy mak­ers to pro­vide the ini­tia­tive, the suc­cess it de­serves. The Do­ing Busi­ness Re­port of 2017 puts forth some amaz­ing facts in terms of the im­pact of the Re­port it­self. Ac­cord­ing to the re­port, while it was pos­si­ble in only 41 coun­tries to start busi­ness in less than 20 days, back in 2005; the num­ber has more than tre­bled in 2016, tak­ing the count to 130. Such re­ports and their anal­y­sis re­in­state the tri­pod of Busi­nessGovern­ment-So­ci­ety. Each pol­icy of the gov­ern­ment chalked out by its umpteen reg­u­la­tory author­i­ties and bod­ies has far reach­ing im­pacts, some­times even on the small­est seg­ment of busi­ness and its ac­tiv­ity. With start-up cul­ture gain­ing ground, a lot many peo­ple with busi­ness ideas are hop­ing to make it big in the cor­po­rate world. A favourable reg­u­la­tory frame­work can act as a great cat­a­lyst in bring­ing out the best from such or­gan­i­sa­tions. The com­bined ef­fort of the cor­po­rate, the pol­icy framers and the pro­fes­sion­als shall haul the na­tion into an al­to­gether new era ush­er­ing in the growth and de­vel­op­ment it de­serves.

CS (Dr.) Shyam Agrawal, Pres­i­dent, ICSI

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