The government will introduce a new version of the integrated company incorporation form-to be called INC29, another measure to improve ease of doing business.
The new form will have an option for entities to apply for director identification number (DIN) and reservation of name through a single e-form. The government is targeting to reduce average number of days for incorporating a company to one to two days.
"This new version of form INC29 will allow up to five directors to be appointed and greater flexibility in proposing a name for a company. Suggestions from the stakeholders are being taken," a government release said.
The application for allotment of DIN will be increased to maximum five directors, and reservation of a name, incorporation of company and appointment of directors of the proposed company can be filed in the integrated form.
The government claims that time taken for registration of a company has been cut by 50% as a part of ease -of-doing business.
"No of days for incorporating a company has come down from 9.57 days in December 2014 to 4.51 days in November 2015," a tweet from ministry of finance said.
This is part of the government's drive to improve India's ranking on the globally tracked parameter of ease of doing business.
India currently ranks 130 in the latest ranking compiled by the World Bank.
The Ministry of Corporate Affairs, which is tasked with the administration of the Companies Act of 2013 and other laws regulating the functioning of the corporate sector, has been working to simplify the company incorporation process. The recent amendments in Companies Act 2013 seeks to remove some oppressive provisions in the 2013 law to foster a better investment climate. The government will soon bring in more changes to the act to cut down on the corporate compliances.