Lok Sabha Question No. 2293 (UNSTARRED), answered on 2024-12-09
Subject: Ease of Regulatory Requirement for Companies to Expand Operations and Relocation
Ministry: CORPORATE AFFAIRS
Asked by: Shri Sukanta Kumar Panigrahi

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 2293 ANSWERED ON Monday, December 09, 2024 Agrahayana 18, 1946 (Saka)

Ease of Regulatory Requirement for Companies to Expand Operations and Relocation

2293. Shri Sukanta Kumar Panigrahi:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government is actively engaging with multinational companies  to  facilitate  their  relocation  to  India  as  part  of  their efforts for derisking, especially in light of the current global economic uncertainties;
- (b)  whether  steps  are  being  taken  by  the  Government  to  ease regulatory requirements and provide incentives for such companies to establish or expand their operations in the country;
- (c)  the  measures  taken  to  ensure  that  these  companies  receive adequate support in terms of tax incentives, ease of doing business and workforce integration; and

(d)  whether  the  Government  is  considering  any  new  policies  or amendments to attract such companies, particularly in sectors such and

- as manufacturing, technology, supply chain resilience development of Youth and if so, the details thereof?

## ANSWER

Minister  of  State  in  the  Ministry  of  Corporate  Affairs;  Minister  of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

(a):  The  term  multinational  company  is  not  defined  in  Companies Act.  However,  the  decision  of  companies  regarding  relocation  to India is based on various considerations depending upon their work, assessment  of  socio-economic  and  geopolitical  considerations, commercial business choices, etc.

- (b) and (c): The steps taken by Ministry of Corporate Affairs to ease regulatory requirements and to promote ease of doing business, are as under: -
- i. Introduction of the integrated Simplified Proforma for Incorporating Companies Electronically (SPICe) Form for name reservation, incorporation of companies, allotment of Director identification Number  (DIN) and allotment of Permanent Account Number (PAN) and first Tax Deduction and Collection Account Number (TAN) for a company.
- ii. Doing  away  with  requirement  for  minimum  paid  up  capital, from  Rs.  1  lakh  for  a  private  company  and  Rs.  5  lakh  for  a public company.
- iii. Zero fee being charged by the Ministry of Corporate Affairs for incorporation of all companies with authorized capital up to 15 lakh or upto 20 members where no share capital is applicable etc.
- iv. The Central Registration Centre was established in 2016 under Section  396  of  the  Companies  Act,  2013  for  centralized  and speedier processing of incorporation related e-forms i.e. reservation of name and incorporation of companies.
- v. The  C-PACE  (Centre  for  Processing  Accelerated  Corporate Exit)  (C-PACE)  was  made  operational  w.e.f.  1.05.2023  under Section 242(2) of the Companies Act, 2013 for centralized and transparent  processing  of  the  matters  related  to  voluntary closure of the companies.
- vi. Further, the Central Processing Centre (CPC) was also operationalized  w.e.f  16.02.2024  for  faster  and  centralised handling of various electronic e-forms filed earlier with jurisdictional ROCs under Companies Act, 2013.
- vii. Streamlining Annual Compliance: Abridged and concise versions  of  Annual  Returns  introduced  for  small  companies and One Person Companies (OPCs).
- viii. Faceless and Electronic Adjudication Mechanism: Transition to a faceless adjudication mechanism  to  eliminate physical hearings for corporate default cases.
- ix. Decriminalization  of  63  provisions  under  the  Companies  Act, 2013,  and  LLP  Act,  2008.  Capping  of  penalties  for  small entities (Rs. 2 Lakh for companies and Rs. 1 lakh for officersin-default).
- x. The Companies  (Listing of equity shares in permissible jurisdiction)  Rules,  2024  have  been  issued  vide  notification dated  24.01.2024.  Through  this  policy  initiative  Indian  Public companies have been allowed to list their equity shares on the international  stock  exchanges  at  GIFT  IFSC.  This  enables Indian  public  companies,  especially  start-ups  and  companies in the sunrise and technology sectors, to use this alternative avenue to access global capital beyond the domestic exchanges. Further,  Department  for  Promotion  of  Industry  and  Internal  Trade (DPIIT)  has  taken  various  initiatives  aimed  at  simplifying  and streamlining  business  regulations,  including  the  B-Ready  as  nodal department is responsible for several key initiatives including the BReady assessment, the Reducing Compliance Burden (RCB), analysing Cost of Regulation, National Single Window Portal (NSWS) and  Business  Reform  Action  Plan  (BRAP).  These  initiatives  are designed  to  improve  India's  business  climate,  attract  investments and foster economic growth by reducing bureaucratic hurdles and making the regulatory environment more business friendly. Also,  as  part  of  Ease  of  Doing  Business  strategy  the  Government has developed various platforms to ensure better co-ordination and eased process for registration and application for companies under its  various  initiatives  such  as  National  Single  Window  System, Single Business ID, PM Gati Shakti, ULPIN etc. (d):  The  Ministry  of  Corporate  Affairs  (MCA)  is  responsible  for administration of Companies Act, 2013 and LLP Act, 2008. MCA has also  taken  steps  related  to  provisions  for  ease  of  doing  business related  to  these  Acts.  These  are  universally  applicable  across  all

companies and LLPs and not restricted to any specific sector.

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