May, 2015 has just passed….a big relief for many from the hot summer. This time it was a talk of the nation and a few international media as well that Telangana and AP had the highest death toll due to high temperature. Union Government Narendra Modi’s Government successfully completed its maiden year. Though not achieved major milestones, but made its strong foot prints in terms attracting the attention of the Internal Business Community and the Governments for their investment opportunities. Besides this, the Government is successfully implementing few basic necessities for the mass like banking facility to the poor for financial inclusion, accidental insurance policy, Pensions Policy, deposit scheme for the girl Child. Overall the regulatory and business environment is positive. State Government Telangana and Residual Andhra Pradesh have celebrated the completion of 1st year of post reorganisation. Both states look competing for development and making lot of road shows to attract and invite investments. There is ample opportunity to grow better if they create a friendly business environment. MCA As promised, Indian Government has brought out many relaxations to boost the “Ease of Doing Business”. MCA has announced the following important changes which will definitely improve the business environment:
- Introduction of Integrated Incorporation Form (Form INC 29) for Fast Track Incorporation of the Companies comprising DIN Application, Name Availability and Incorporation besides providing PAN, TAN and ESIC on Incorporation……..a move never thought in the past.
- Companies (Amendment) Act, 2015 w.e.f. 29th May, 2015 …which has done away with the minimum capital requirement to start a Company, mandatory Common Seal, Obtaining Commencement of Business certificate, public viewing of few Board Resolutions, reporting all frauds to CG (only material frauds to report to CG), put in place a speedier process for approval of draft notifications for providing exemptions etc. from specific provisions of the Act to a class of companies.
- Draft notifications keeping the Private Companies, Govt Companies, Section 8 Companies and Nidhi Companies hassle free from the compliance of various provisions of CA, 2013 making their life easier. I am sure these provisions will make Private Limited Companies as preferred vehicles for Incorporation.