Ease of Doing Business – Part II

Implemented

Yet to be Implemented

A comprehensive list of all required licenses, both economy-wide and industry-specific is compiled, covering at least the following areas: labor licensing, environmental clearances, State tax registration, electricity connections and construction permits, along with all industry-specific clearances;

• The checklist is checked effectively to ensure that no other State approval is required by consulting all licensing agencies;
• The checklist is made available to users on a State government website;
• In addition, an entrepreneur using the website for the purpose of understanding his or her regulatory burden is able to filter the list by industry to understand the unique mix of economy-wide and industry-specific licenses and registrations;
• It is also important that there are mechanisms in place to regularly update the checklist. The usefulness of such a checklist is diminished if it is not kept up-to-date. In fact, an outdated checklist can do more harm than good because it creates a false sense of security that all required permits have been obtained.

Centralized helpline for facilitating queries regarding application and approval process

• The number should be published on the website where all the regulatory compliance requirements are posted. The State government may also choose to publicize the number through billboards, posters and other marketing material.
• The help desk should have clearly defined working hours, and all calls to the number should be answered within those operating hours.
• The help desk should have a ticket management system that helps track callers and questions, so that the effectiveness of the help desk can be gauged effectively. This ticket management system will also help government track trends in terms of effectiveness, by checking whether the entrepreneurs then go ahead and register the business. It also provides a good database of entrepreneurs who can then be surveyed post-registration to gauge their experience.
• The help desk operators should be sufficiently trained to be able to answer specific questions that may be common to most enquiries.

• A single dedicated body or setup should be designated to act as a single window system. This body can be an existing State government body, e.g. the investment promotion agency or the Industries department, or can be a new entity that is established for the purpose of providing the single window service. In either case, the agency must be mandated to be a single point of contact for all business start-up licensing, so that entrepreneurs do not have to visit multiple agencies.
• In order to empower the body or setup to effectively carry out the function above, it must be given explicit mandate through a legislation or notification. The absence of legislation may mean that the single window system is not effective at coordinating among the various agencies, thereby limiting its effectiveness
• Once established, the single window system should establish and publicize through its website clear timelines for each service that it provides, so that entrepreneurs are aware of the time it takes to meet their regulatory compliance requirements.
• The single window should also indicate clear timelines that govern its processes for dealing with grievances related to the registration process. Such timelines provide additional certainty to entrepreneurs who wish to register their businesses. However, to be truly effective, these timelines should relate to fully resolving the grievances themselves – not just routing the grievance to other agencies or departments.
• In order to make the system truly effective, these timelines must be enforceable. This means that the State must have legislation that:
• Mandates time-bound delivery of services to business, in line with the timelines published above; and
• Lays out punitive measures against officials who do not abide with these timelines.
• The CAF should be easily accessible to entrepreneurs, either online or in hard copy.
• The State government should have legislation or notifications in place mandating the validity of the CAF and making it acceptable to all agencies covered as a means of application.
• Entrepreneurs should be able to fill out and submit the application form online;
• The user can pay all associated fees online;
• Once submitted, the applications are processed and approved by each licensing agency online, and not through a manual or hard copy process;
• The user can track the status of his applications online using the portal;
• Once approved, the user can obtain the approval or registration certificate online through the portal.

• The detailed procedure covering all applicable steps, from application submission to application approval, is published online on department’s website. It may be supplemented with process maps if available; in any case, the details should be published explicitly and should not refer to Acts or rules.
• A comprehensive list of the documents that need to be submitted as part of the application is included on the website.
• Clear timelines are notified, either on the portal, or through a notification and citizen charter.
• The application can be made online, through a portal with the following features:

o Entrepreneurs should be able to fill out and submit the application form online;

o The user can pay all associated fees online;

o Once submitted, the applications are processed and approved by each licensing agency online, and not through a manual or hard copy process;

o The user can track the status of his applications online using the portal; and

o Once approved, the user can obtain the approval or registration certificate online through the portal.

• There are no physical touch-points in the application process. This means that entrepreneurs are not required to physically present and submit all documents for verification before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents through the online system.
• Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned – should be made available for download from the website by the user.
• Other users should be able to check the authenticity of the document online, using the certificate number or other unique reference, by visiting the portal.
• At the most basic level, States can develop and publish on their respective websites templates for sales deeds and other frequently registered documents. Users can use these templates to easily draft new agreements and deeds.
• Systems can be introduced that allow users to conduct the property registration process online. This can reduce the burden of manual processes and increase efficiency and transparency.
• Stamp duties involved in property registration can also be paid online, through the integration of a payment gateway with the online property registration system.
• E-stamping facilities are an efficient mechanism to replace manual stamps. Efficient e-stamping facilities allow later retrieval and validation of registered deeds, while simultaneously giving users a secure option to replace the old system of stamp papers. An efficient online property registration will also require e-Stamps to be fully online.
• Digitized land records at the sub-registrar makes it possible for the sub-registrar to easily verify land ownership when new transactions are initiated on the land. In addition, it allows prospective land-buyers with a single point of contact to determine land ownership by checking the required historical documentation.
• Digitized land records at the land records office can help a State move towards conclusive title by ensuring that the requisite information on ownership is available when issuing Property Cards to citizens, and for pre-mutation verification of land transactions.
• Digitized land records at the local municipality office can help effectively target property taxes to the correct owners, as well as conducting verifications to ensure that all property taxes are paid upon submission of construction permit applications (please refer to question 40). Digital land records may also help in the implementation of large-scale infrastructure projects that require payment of compensation for those whose lands have been possessed. Often such projects are delayed because spurious compensation claims arise

• The detailed procedure covering all applicable steps, from application submission to application approval, is published online on department’s website. It may be supplemented with process maps if available; in any case, the details should be published explicitly and should not refer to Acts or rules.
• A comprehensive list of the documents that need to be submitted as part of the application is included on the website.
• Clear timelines are notified, either on the portal, or through a notification and citizen charter. A timeline for each process has been notified in the Central Acts and Rules, and is therefore considered as Not Applicable for all States.
• The application can be made online, through a portal with the following features:

o Entrepreneurs should be able to fill out and submit the application form online;

o The user can pay all associated fees online;

o Once submitted, the applications are processed and approved by each licensing agency online, and not through a manual or hard copy process;

o The user can track the status of his applications online using the portal; and

• Once approved, the user can obtain the approval or registration certificate online through the portal.
• There are no physical touch-points in the application process. This means that entrepreneurs are not required to physically present and submit all documents for verification before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents through the online system.
• Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned – should be made available for download from the website by the user.
• Other users should be able to check the authenticity of the document online, using the certificate number or other unique reference, by visiting the portal.

• The detailed procedure covering all applicable steps, from application submission to application approval, is published online on department’s website. It may be supplemented with process maps if available; in any case, the details should be published explicitly and should not refer to Acts or rules.
• A comprehensive list of the documents that need to be submitted as part of the application is included on the website.
• Clear timelines are notified, either on the portal, or through a notification and citizen charter.
• The application can be made online, through a portal with the following features:

o Entrepreneurs should be able to fill out and submit the application form  online;

o The user can pay all associated fees online;

o Once submitted, the applications are processed and approved by each licensing agency online, and not through a manual or hard copy process;

o The user can track the status of his applications online using the portal; and

o Once approved, the user can obtain the approval or registration certificate online through the portal.

• There are no physical touch-points in the application process. This means that entrepreneurs are not required to physically present and submit all documents for verification before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents through the online system.
• Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned – should be made available for download from the website by the user.
• Other users should be able to check the authenticity of the document online, using the certificate number or other unique reference, by visiting the portal.

• The detailed procedure covering all applicable steps, from application submission to application approval, is published online on department’s website. It may be supplemented with process maps if available; in any case, the details should be published explicitly and should not refer to Acts or rules.
• A comprehensive list of the documents that need to be submitted as part of the application is included on the website.
• Clear timelines are notified, either on the portal, or through a notification and citizen charter.
• The application can be made online, through a portal with the following features:

o Entrepreneurs should be able to fill out and submit the application form online;

o The user can pay all associated fees online;

o Once submitted, the applications are processed and approved by each licensing agency online, and not through a manual or hard copy process;

o The user can track the status of his applications online using the portal; and

o Once approved, the user can obtain the approval or registration certificate online through the portal.

• There are no physical touch-points in the application process. This means that entrepreneurs are not required to physically present and submit all documents for verification before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents through the online system.
• Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned – should be made available for download from the website by the user.
• Other users should be able to check the authenticity of the document online, using the certificate number or other unique reference, by visiting the portal.
• The detailed procedure covering all applicable steps and the comprehensive inspection checklist is published online on department’s website. It may be supplemented with process maps if available; in any case, the details should be published explicitly and should not refer to Acts or rules.
• A specific provision must be made by the State government or by the associated agencies that inspection reports must be submitted within 72 hours through a notification or circular.
• The inspector allocation system must be linked to the online application and approval system, and the approval authority should be able to allocate inspectors once applications are submitted either by jurisdiction or randomly. The inspector should also have an online workspace within the system where they can see their inspection workflows and submit their reports.
• Inspectorates should define risk criteria to ensure that are programmed into the system to ensure that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of inspections and the available human resources by reducing the burden on low-risk business while ensuring that high-risk businesses are adequately monitored.

• Specialized commercial courts can focus on contract disputes exclusively, thereby reducing the requirement for complainants and defendants to wait for delayed judgments through the regular court system. This can reduce the time and the cost of enforcing contracts.
• Model contract templates and guidelines can help standardize contracts with standards terms and conditions that are easily enforceable. The absence of such templates means various contracts are executed with loopholes that can be exploited by filing a court case.
• Recruiting judges and ensuring that vacancies are filled up can help ensure that there are sufficient judges in place to deal with disputes, thus tackling the backlog as well as rendering judgments more efficiently in future cases.