Government to soon introduce Business Identification Number for companies

The government is planning  to introduce Business Identification Number (BIN) for companies, doing away with multiple registration numbers a single entity needs to obtain for various regulatory purposes.

Presently a company is required to obtain 18 different registration numbers. Which means that a lot of time of any new company is wasted in it getting all the required registrations. This not only increases the cost for the company but also makes it difficult for any new company to start a new business. This has resulted in India being ranked at 130th for 2016 among 189 countries in the World Bank report on ease of doing business. The incumbent government is aiming to bring India into the top 50 ranks. The proposed decision of introducing BIN is in line with the several steps taken by the incumbent government in last 2 years to simplify and rationalize existing rules and introduction of information technology to make governance more efficient and effective. 

What is BIN?

• The BIN would act as an identification number for different regulatory purposes and do away with the need for procuring separate registration numbers such as Company Identification Number and Labour Identification Number.

Benefits of Business Identification number

• It will help in reducing the time of registration processes of the companies since  This portal provides one-stop clearance platform for investment proposals. and thus would improve ease of doing business in India.

Other recent steps to improve ease of doing business:

• Reducing disputes with taxpayers, providing clarifications by way of circulars (non-applicability of MAT to foreign companies in certain cases).

• Abolishing wealth tax

• Reducing corporate tax to 25%

• Introducing e-business portal which merges 14 regulatory permission at 1 place.

• Proposal to bring Bankruptcy law for easier exit of investors

• Deferring GAAR by 2 more years.

• Establishment of dedicated branches in court for early resolution of commercial disputes

• Getting rid of distinction between FDI&FII.

• Merging FMC (Forward Market Commission) With SEBI

• Reduction in the number of documents required to export& import to 3 from 10.

• Security clearance by FIPB (Foreign Investment Promotion Board) investment proposal will now be cleared by 30 days down from 90 days.

• Proposed 5 pronged labor code to replace the 44 laws.

• Introduction of Labor identification number and putting inspection on unified portal.

• Fast track approval agreement with Japan & Germany

• FIPB permission now only for FDI investment above Rs. 5000 crore. Previously that the limit was Rs. 3000 crore.