Methodology | Measured Parameters | Indian Regulations which Had an Impact |
Starting a Business | Procedures, time, cost and minimum capital to open a new business | - Fifteen years ago, it took over 50 days on average to start a business in the region, compared to 17 days now.
- India՚s digital drive is having an impact on starting a business.
- Online application system helped India՚s ranking.
- Region specific solutions like merger of pleas for profession tax and value added tax in Mumbai and the merging of applications for PAN and Tax Account Number or TAN were seen as elements cut short significantly the time taken to start a business.
- Report says that India made it more difficult by introducing a requirement to file a declaration before the commencement of business operations.
- Streamlining of business incorporation process by introduction of the SPICe Form (INC-32) , which combined the application for the Permanent Account Number or PAN.
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Dealing with Construction Permits | Procedures, time and cost to build a warehouse | - Reduction in the slew of procedures. Reduction in time taken to obtain a building permit due to the new online system has streamlined the process at the Municipality level.
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Getting Electricity | Procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse | |
Registering Property | Procedures, time and cost to register commercial real estate | |
Getting Credit | Strength of legal rights index, depth of credit information index | - Automatic stay for secured creditors during reorganization procedures
- Changes in rules on priority of secured creditors outside reorganization proceedings
- Adopting a new insolvency and bankruptcy code.
- Governments sustained efforts to reduce NPA՚s- establishment of debt recovery tribunals reduced non-performing loans by 28% and lowered interest rates on larger loans, suggesting faster processing of debt recovery cases cut the cost of credit.
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Protecting Minority Investors | Indices on the extent of disclosure, extent of director liability and ease of shareholder suits | - Here India՚s improvement is among the best in the world.
- Slew of reforms introduced by SEBI Protection mechanism for minority investors through creation of increased remedies available in cases of prejudicial transactions.
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Paying Taxes | Number of taxes paid, hours per year spent preparing tax returns and total tax payable as share of gross profit | - Easy to comply with corporate income tax regulations
- Electronic payments to the Employees Provident Fund
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Trading Across Borders | Number of documents, cost and time necessary to export and import | Increased use of mobile and electronic modes and end of merchant overtime fees has reduced time taken to comply with export and import regulations at ports. |
Enforcing Contracts | Procedures, time and cost to enforce a debt contract | Enforcing contracts became easier after the introduction of the National Judicial Data Grid as this has allowed case management reports on local courts to be generated. |
Resolving Insolvency | The time, cost and recovery rate (%) under bankruptcy proceeding | The Insolvency And Bankruptcy Code, 2016 introduced a reorganization procedure for corporate debtors and facilitated continuation of the debtor՚s business during insolvency proceedings. |