1. What Is MCA E-Form AGILE INC-35?

Application for Registration of the Goods and Service Tax Identification Number (GSTIN), Employees’ State Insurance Corporation (ESIC) Registration Plus Employees’ Provident Fund Organization (EPFO) Registration.

2. Companies (Incorporation) Amendment Rules, 2019

Earlier Vide Rule 38, An Application For Incorporation Consists Of Following: SPICe INC-32, INC-33 & INC-34

Now The New Rule Inserted After Rule 38, Which Is Rule 38A, Which Consists Of: SPICe INC-32, INC-33 & INC-34 AND AGILE INC-35

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3. What Are The Contents Of INC-35?

Three Registration Processes Merged Into Single Agile Form Namely: GSTIN W.E.F March 31st, 2019 EPFO W.E.F April 08th, 2019 ESIC W.E.F April 15th, 2019

4. What’s The Purpose?: World Bank’s Doing Business Study For Starting A Business

Image

6. Doing Business Report 2019: India Statistics

Doing Business 2019

7. India’s starting A Business Ranking

Rankings on doing Business Topics

8. Procedures under Starting a Business

Starting a business

9. Detailed Procedures: Time & Procedure

Simultaneous Procedure

No. Procedure Agency Completion (Days)
6 Open a bank account Bank 3
7 Register with Office of Inspector, Mumbai Shops & Establishment Act Municipal Corporation of Greater Mumbai(State) 7
8 Obtain Goods & Services Tax Registration Number Department of Goods & Services Tax, Govt of Maharashtra(State) 4
9 Register with the EPFO and ESIC Shram Suvidha Portal, Ministry of Labour and Employment(Federal 1
10 Register for Profession Tax Sales Tax Department, Govt of Maharashtra(State) 0.5

10. Role of AGILE: It’s Impact on Time & Procedures

  • The World Bank Doing Business Report Captures That To Incorporate A Company In India, It Takes 17 Days With 10 Procedures
  • The Introduction Of E-Form AGILE Would Reduce The Number Of Procedures And Time Associated With The Same
  • Procedure No.8 & Procedure No. 9 Would Be Merged And Hence Would Be Counted As One Procedure. The Total Number Of Procedures Now Stands Reduced To 9.
  • Procedure No.8 Takes 4 Days To Complete Whereas Procedure No.9 Takes 1 Day. The Reduction In Number Of Days After Merging These Two Procedures Would Depend On Various Factors
  • The Application Through SPICe INC-32 And AGILE INC-35 Would Not By Itself Result In Reduction In Number Of Days As The Same Is A Consolidation Exercise In The Garb Of Simplicity Of Procedures And Creation Of Single Window Forms For Various Registrations Under Various Acts. Further, The Applications No Matter Submitted To ROC, MCA Would Be Processed By The Goods And Services Tax Network & Shram Suvidha Portal Only. The MCA Would Act As A Mere Facilitator To Forward The Applications From The Backend To The Respective Agencies.

Agile is Fragile- An Insight

11. Issues In AGILE:

a. Issues in Goods & Services Tax:

> The Current Registration Requirements As Per Sec 22 CGST Act is Rs 20,00,000

> For Certain Categories Of Tax Payers, Registration Requirements Has Been Hiked To Rs 40,00,000 Vide Notification No.10/2019-Central Tax Dated 7th March, 2019

> Due to Non Specify Of Any Limit Based On Turnover or Any Other Criteria, The Implementation May Be Jeopardized And Desired Objectives May Not Be Achieved

Also, Companies Having Paid Up Share Capital Exceeding Rs 15,00,000 May Opt For Normal Route And Hence Would Apply For GST Registration On GSTN Instead Of AGILE

b. Issues In Employees’ Provident Fund Orgainization & Employees’ State Insurance Registration:

> The Act Applies To Every Establishment Which Is a Factory Engaged In Any Specified Industry and In Which 20 or More Persons Are Employed For EPFO and 10 or More Persons for ESIC

> Most Of The Micro And Small Enterprises Do Not Have Adequate Manpower And Employment Of 20 Or 10 Persons As The Case May Be For The Applicability. Further, The Industry Should Be As Specified In Schedule I To The Act. Hence, They Would Go For Each of the Registrations Separately Through Shram Suvidha Portal Only Instead Of AGILE

c. Issues in Paid Up Capital Criteria For Incorporation:

> The ROC Has Waived Incorporation Fee For Class Of Companies Having Paid Up Share Capital Of Rs 15,00,000

> For Companies Having Paid Up Capital Of Greater Than Rs 15,00,000 There Is No Relaxation In Fee And Can Incorporate The Company Through SPICe/Normal Route.

> Also SPICe Form Is Restrictive In Certain Aspects And Hence The Corresponding Registrations Viz GSTN, EPFO And ESIC Has To Be Obtained Separately.

12. What Constitutes Procedures & Time? World Bank

– Any Interaction of the Company Founders with External Parties

– Procedures Completed In the Same Building But In Different Offices or Different Counters Are Separate Procedures

– Visit in the Same Office Several Times for Different Sequential Procedures Counted As Separately

– Minimum Time for Each Procedure Is 1 Day

– Electronic Procedures Are Counted As 0.5 Day

– Simultaneous Procedures Start on Consecutive Days

– Entrepreneur Is Aware Of All Requirements and Their Sequence

– No Facilitators Required Unless Mandated By Law

– Professional Services Are Counted As Separate Procedures

– Each Electronic Procedure Is Counted As Separate

– Industry Specific Procedures Are Excluded

13. Concluding Remarks: AGILE Not A Game Changer

– Due To the Above Issues, the Implementation Scheme Is Going To Be Jeopardized

– The World Bank Assumptions Are Subjective and Cater To Specific Class and Cannot Be Measured Holistically

– The Framework Is Feedback Based And Is Executed Merely To Measure Regulations Across The World. It Is A Means To Achieve Simplicity But By Itself Lacks The Qualities And Is Not An End For The Achievement.

– The Govt Tried To Focus More on the Methodological Reforms Instead Of Structural Reforms

– The Agenda of Ease of Doing Business Is Nothing but A Marketing Gimmick

– The Govt is Focusing More towards Digitization and Govt Process Re-Engineering By Ignoring The Fundamental And Economic Structure Of The Country

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