If this morning’s Economic Times news materializes, then August 2011 could bring about a new era for India as an entrepreneur friendly place.
The Economic Times article titled “Come August and you can start your Company in 24 hours; MCA proposal to spur entrepreneurship” is what we’re all excited about. The article says:
But come August, entrepreneurs dreaming about walking in their footsteps can float a company in exactly 24 hours, doing everything that’s needed online. At least, that’s the promise the Ministry of Corporate Affairs (MCA) is holding out to start-up aspirants across the country.
India hasn’t been a front runner when it comes to destinations to startup a new business venture. In fact, as the ET article points out ranking 165 out of 183 countries in terms of ease of starting up makes the word ‘frontrunner’ a terrible understatement. However, if this proposal falls through and the MCA really delivers on this making it possible to register and form a company within 24 hours without the hassle and red tape the earlier process is known for, then the country could potentially undergo a revolution as a destination.
We’ve talked about the various pitfalls and challenges in starting up in India with issues around paperwork, bureaucracy, corruption, trouble getting a phone line, an electric connection, negotiating a rent agreement and a host of other problems most entrepreneurs would rather not have to deal with when they have more important priorities as startup founders. This move by the MCA could ease one of the big worries for most entrepreneurs when it comes to starting new ventures and would be a remarkable first step in making India a destination of choice not just for existing entrepreneurs but new ones and overseas entrepreneurs as well.
Think about it…if you could setup a company within 24 hours, leverage the vast talent resources in India, benefit from the lower operating costs which are critical to early stage ventures, have a supporting startup eco system with all the resources you need to function and grow…then India could come across as a good place to start right? Ofcourse, we would still have to sort out all the other issues like shielding entrepreneurs from the corruption, delays in getting infrastructure setup and other issues, but with concrete steps, we can create a more startup friendly environment and seed the next generation of great businesses.
For now we have our fingers crossed that this new proposal by the MCA will come through and give entrepreneurs one of the fastest most efficient company formation processes anywhere!
