Ease of doing business Current Affairs
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The government has re-promulgated the Companies (Amendment) Ordinance, 2019 to amend the Companies Act 2013. Even though the Companies (Amendment) Bill, 2018 for this effect was passed in Lok Sabha, it was pending before Rajya Sabha. The ordinance was first issued in November and would have ceased to be operational from January 21. Hence the government has decided to re-promulgate the ordinance.
Features of the Companies (Amendment) Bill, 2018
The Loksabha had passed the Companies (Amendment) Bill, 2018. The bill had important features like re-categorisation of offences, reducing the burden on special courts and bringing down the applicable penalties for small companies, enhancing the jurisdiction of Regional Director for compounding offences, empowers the central government to allow certain companies to have a different financial year instead of being determined by the National Company Law Tribunal among others.
The main objective of the amendment bill was the promotion of ease of doing business along with better corporate compliance.
Promulgation of Ordinance
Article 123 of the Constitution empowers the President to promulgate Ordinances to amend certain laws when either of the two Houses of Parliament is not in session and hence it is not possible to enact laws in the Parliament.
Ordinances must be must be approved by Parliament within six weeks of reassembling or they shall cease to operate.
Similar power to promulgate the ordinance has been provided to the Governor of the state under Article 213.
Ordinances were provided as a stop-gap arrangement and not as an alternative legislation process. The promulgation of the ordinance is subject to judicial review
Tags: Article 123 • Article 213 • better corporate compliance. • Companies (Amendment) Bill 2018 • Companies (Amendment) Ordinance 2019 • Companies Act 2013 • Ease of doing business • Lok Sabha • Ordinance promulgation • Rajya Sabha
In the World Bank’s Doing Business (DB) rankings for 2019, India has climbed 23 spots to rank 77th globally. India has witnessed a substantial jump in the rankings for the second consecutive year. In the year 2018 India had jumped 30 places. The various digital interventions have been a great contributing factor for India in making this significant improvement.
To increase the ease of doing business rankings , it is a pre-requisite for India to give a special focus towards MSMEs to ensure that there is a robust and conducive environment for the sector. The Ministry of Micro, Small and Medium Enterprises (MSME) has introduced various digital initiatives in this regard. Some of them listed below:
Udyog Aadhaar Memorandum
Udyog Aadhaar Memorandum (UAM) is a one-page registration form which constitutes a self-declaration format under which the MSME will self-certify its existence, bank account details, promoter/owner’s Aadhaar details and other minimum information required. There shall be no fee for filing the Udyog Aadhaar Memorandum. Once the UAM is submitted, Udyog Aadhaar Number would be sent through e-mail.
MSME SAMADHAAN Portal
MSME Delayed Payment Portal – MSME SAMADHAAN has been launched for empowering micro and small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries, Departments, CPSEs or State Governments.
MSME SAMBANDH Portal
MSME SAMBANDH Portal has been launched to monitor the implementation of the Public Procurement from MSMEs by Central Public Sector Enterprises (CPSEs). Together with assisting MSMEs for participation process it also helps Ministries and the CPSEs to assess their performance in procurement process as stipulated in Procurement Policy, 2012.
MSME SAMPARK Portal
The MSME Sampark portal is a digital platform, wherein, job seekers (passed out trainees / students of 18 MSME Technology Centers) and recruiters register themselves for getting employment and getting right kind of manpower respectively.