In India, It Takes 1570 Days For Company To Be Fully Exited
In India it takes 1570 days for a company to go out of registration, in Singapore it takes only 365 days.
The Economic Survey 2020-21 report states that regulators in India are overburdened and need to be simplified.
It also takes a lot of time to make decisions at the administrative level in the country. Transparency ends due to more control.
The report states that there is a need to remove the uncertainty in decisions with procedural reforms in India.
However, India’s ranking has improved significantly in terms of administrative procedure. India’s ranking was 72 among 102 countries in 2015, reaching 45 in 2020.
According to the survey report, India’s position has deteriorated on many other parameters.
According to the report, it is one thing to be the regulator in any country and the process of implementing the rules. But what is important is how effective it is.
According to the report, the uncertainty in the decision and the long time taken can be gauged from the fact that once a company is registered, it takes 1570 days (4.3 years) for the company to be fully exited.
This time is taken when there is no liability or any case on the company. It is interesting that in these 1570 days, 1035 days take clearance from departments like Income Tax, Provident Fund and GST.
Compared to other countries, the time taken in India is much longer. It takes 12 months for a company to go out of registration in Singapore, 12 to 24 months in Germany and 15 months in the UK.
The report says that the same thing has been revealed in the World Bank study.
Despite India being better than the year 2013 in the Regulatory Quality Index, India is far behind countries like UK, USA, Singapore, and Japan in this regard.
India’s ranking in Ease of Doing Business has improved significantly, but in terms of the Registry of Starting of Business and Property, India’s ranking is 136 and 145 respectively.
The country’s economic situation is strong at present, efforts will have to be made to achieve a corresponding rating: Chief Economic Advisor
Chief Economic Advisor Krishnamurthy Subramanian has said that India will have to make efforts to strengthen its rating as a country.
At present, the country’s economic situation is strong and the country will have to make efforts to achieve the rating according to this situation.
Subramanian said on Saturday that we have put our position very strongly in front of the rating agencies.
Such changes do not happen immediately, but can happen over time. In such a situation, you will have to continue your efforts continuously.
