Economy Profile
India
India
Doing Business
2020
Page 1
Economy Profile of
India
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business
Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits
Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity
Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property
Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit
Movable collateral laws and credit information systems
Protecting minority investors
Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes
Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders
Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts
Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency
Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers
Flexibility in employment regulation and redundancy cost
India
Doing Business
2020
Page 2
About Doing Business
The
project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
Doing Business
The
project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business
captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency.
also measures features of employing workers. Although
does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
Doing Business
Doing Business Doing Business
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
Doing Business
In addition,
offers detailed
, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that
has ranked.
Doing Business
subnational studies
Doing Business
The first
study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where
also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
Doing Business
Doing Business
To learn more about
please visit
Doing Business
doingbusiness.org
India
Doing Business
2020
Page 3
Ease of Doing Business in
India
Region
South Asia
Income Category
Lower middle income
Population
1,352,617,328
City Covered
Mumbai, Delhi
63
DB RANK DB SCORE
71.0
Rankings on Doing Business topics -
India
136
27
22
154
25
13
115
68
163
52
Starting
a
Business
Dealing
with
Construction
Permits
Getting
Electricity
Registering
Property
Getting
Credit
Protecting
Minority
Investors
Paying
Taxes
Trading
across
Borders
Enforcing
Contracts
Resolving
Insolvency
Topic Scores
81.6 78.7 89.4 47.6 80.0 80.0 67.6 82.5 41.2 62.0
(rank)
Starting a Business
136
Score of starting a business (0-100)
81.6
Procedures (number)
10
Time (days)
18
Cost (number)
7.2
Paid-in min. capital (% of income per capita)
0.0
(rank)
Dealing with Construction Permits
27
Score of dealing with construction permits (0-100)
78.7
Procedures (number)
15
Time (days)
106
Cost (% of warehouse value)
4.0
Building quality control index (0-15)
14.5
(rank)
Getting Electricity
22
Score of getting electricity (0-100)
89.4
Procedures (number)
4
Time (days)
53
Cost (% of income per capita)
28.6
Reliability of supply and transparency of tariff index (0-8)
6
(rank)
Registering Property
154
Score of registering property (0-100)
47.6
Procedures (number)
9
Time (days)
58
Cost (% of property value)
7.8
Quality of the land administration index (0-30)
10.8
(rank)
Getting Credit
25
Score of getting credit (0-100)
80.0
Strength of legal rights index (0-12)
9
Depth of credit information index (0-8)
7
Credit registry coverage (% of adults)
0.0
Credit bureau coverage (% of adults)
63.1
(rank)
Protecting Minority Investors
13
Score of protecting minority investors (0-100)
80.0
Extent of disclosure index (0-10)
8.0
Extent of director liability index (0-10)
7.0
Ease of shareholder suits index (0-10)
7.0
Extent of shareholder rights index (0-6)
6.0
Extent of ownership and control index (0-7)
6.0
Extent of corporate transparency index (0-7)
6.0
(rank)
Paying Taxes
115
Score of paying taxes (0-100)
67.6
Payments (number per year)
11
Time (hours per year)
252
Total tax and contribution rate (% of profit)
49.7
Postfiling index (0-100)
49.3
(rank)
Trading across Borders
68
Score of trading across borders (0-100)
82.5
Time to export
Documentary compliance (hours)
12
Border compliance (hours)
52
Cost to export
Documentary compliance (USD)
58
Border compliance (USD)
212
Time to export
Documentary compliance (hours)
20
Border compliance (hours)
65
Cost to export
Documentary compliance (USD)
100
Border compliance (USD)
266
(rank)
Enforcing Contracts
163
Score of enforcing contracts (0-100)
41.2
Time (days)
1,445
Cost (% of claim value)
31.0
Quality of judicial processes index (0-18)
10.5
(rank)
Resolving Insolvency
52
Score of resolving insolvency (0-100)
62.0
Recovery rate (cents on the dollar)
71.6
Time (years)
1.6
Cost (% of estate)
9.0
Outcome (0 as piecemeal sale and 1 as going
concern)
1
Strength of insolvency framework index (0-16)
7.5
India
Doing Business
2020
Page 4
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies,
uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
Doing Business
The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally start and formally operate a company
(number)
Preregistration (for example, name verification or reservation,
notarization)
•
Registration in the economy’s largest business city
•
Postregistration (for example, social security registration,
company seal)
•
Obtaining approval from spouse to start a business or to leave
the home to register the company
•
Obtaining any gender specific document for company
registration and operation or national identification card
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day (2 procedures cannot
start on the same day)
•
Procedures fully completed online are recorded as ½ day
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
No professional fees unless services required by law or
commonly used in practice
•
Paid-in minimum capital (% of income per capita)
•
Funds deposited in a bank or with third party before registration
or up to 3 months after incorporation
Case study assumptions
To make the data comparable across economies, several assumptions about the business and the
procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
The business:
-Is a limited liability company (or its legal equivalent). If there is more than one type of limited
liability company in the economy, the limited liability form most common among domestic firms is
chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
-Performs general industrial or commercial activities such as the production or sale to the public of
goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
polluting production processes.
-Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
company shares, two owners have 20% of shares each, and two owners have 15% of shares
each.
-Is managed by one local director.
-Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
-Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
-Leases the commercial plant or offices and is not a proprietor of real estate.
-Has an annual lease for the office space equivalent to one income per capita.
-Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
The owners:
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
is no legal age of majority, they are assumed to be 30 years old.
-Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
India
Doing Business
2020
Page 5
Starting a Business - Mumbai
Figure – Starting a Business in Mumbai – Score
Procedures
47.1
Time
82.4
Cost
95.3
Paid-in min. capital
100.0
Figure – Starting a Business in Mumbai and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
94.1: China (Rank: 27)
89.3: Pakistan (Rank: 72)
86.1: Mexico (Rank: 107)
82.4: Bangladesh (Rank: 131)
82.0: Delhi
81.2: Mumbai
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Standardized Company
Legal form
Private Limited Company
Paid-in minimum capital requirement
No minimum
City Covered
Mumbai
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Procedure – Men (number)
10
7.1
4.9
1 (2 Economies)
Time – Men (days)
18
14.5
9.2
0.5 (New Zealand)
Cost – Men (% of income per capita)
9.3
8.3
3.0
0.0 (2 Economies)
Procedure – Women (number)
10
7.3
4.9
1 (2 Economies)
Time – Women (days)
18
14.6
9.2
0.5 (New Zealand)
Cost – Women (% of income per capita)
9.3
8.3
3.0
0.0 (2 Economies)
Paid-in min. capital (% of income per capita)
0.0
0.2
7.6
0.0 (120 Economies)
India
Doing Business
2020
Page 6
Figure – Starting a Business in Mumbai – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 * 3 4 * 5 6 7 * 8 * 9 * 10
0
2
4
6
8
10
12
14
16
18
Time (days)
0
0.5
1
1.5
2
2.5
3
3.5
4
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
India
Doing Business
2020
Page 7
Details – Starting a Business in Mumbai – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Obtain a digital signature certificate
: Authorized private agency (Federal)
Agency
The applicant must obtain a Class-II Digital Signature Certificate from a certification agency
authorized by the Controller of Certification Agencies. These include private agencies like NIC, E-
Mudhra, MTNL Trust line, to which company directors submit the prescribed application form
along with notarized proof of identity and address.
For obtaining DSC, along with the documents (i.e., Proof of Identity and Proof of Address), a
verification video must be submitted by the applicant, stating the name, company name, mobile
number, email and intention for applying for DSC. Upon submitting the online application, a hard
copy of the form has to be submitted along with supporting documents to the authorized private
agency.
A Class-II Digital Signature Certificate can be obtained for either a period of 1 year or a period of 2
years, and then needs to be renewed for another 1 or 2 years upon payment of renewal fees.
Each agency has its own fee structure, starting from INR 700. The cost will vary in accordance
with the duration of the Digital Signature Certificate. Once the Digital Signature Certificate is
obtained, the authorized personnel (directors/manager/secretary) are required to register the
same with MCA for statutory e-filing.
2 days
INR 700 to INR 2,500 per
Digital Signature
Certificate
2
Reserve the company name online through "Reserve Unique Name" system (RUN)
: Registrar of Companies, Ministry of Corporate Affairs (Federal)
Agency
The company first looks up the availability of a name on the MCA website
(http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do), and then goes on to create a
new user account under the RUN link in the MCA website.
Online service for reservation of name (RUN or "Reserve Unique Name") was introduced through
the web service available on mca.gov.in. This service has replaced the Form INC-1 for name
approval. The following are the fields to be entered in Web-based Application :
- Entity Type: It is required to select the applicable option, i.e. New Company (Others) / Part I
Company, Producer Company, Unlimited Company, Private (OPC), IFSC Company, Section 8
Company, Nidhi Company.
- Corporate Identification Number (CIN): Only in case an Existing Company is applying for the
Change in Name, it is required to enter its CIN.
- Proposed Name: A Proposed Name option required to be entered here (the form allows to
provide 2 names in the form). After entering a Name, MCA has provided Auto Check Facility to
check the availability of the Name, accordingly the Applicant and enter the new Optional name, in
case the Entity already registered with such proposed name and again has to make Auto Check.
When the MCA System provides a Green Remark, Applicant can submit the Applicant with such
name option for further Approval.
- Comments: In this field, Applicant can provide the details related to the Proposed Company and
activities including the Prior Approvals and TradeMark Registration Details, Resolution (for
Existing Company / Foreign Subsidiary Registration).
All applicable documents must be scanned in a single file to be attached to the Web-based
Application. After providing the details in the fields and requisite attachments, Applicant can submit
the Form Online with the prescribed fees. Name will be reserved only for 20 Days within which the
Applicant and/or Promoters are required to file form with MCA-Concerned ROC with requisite
documents as per the Incorporation Rules 2014 as per the Companies Act 2013.
As of April 2016 companies can also complete the name reservation through the SPICe form.
However, in practice, companies reserve the company name before completing the application for
incorporation, as that way company name is confirmed and there is no ambiguity and no chance
of SPICe form being rejected due to name rejection.
1-3 days
INR 1,000
3
Prepare and notarize affidavit by each founder and proposed director
: Notary
Agency
Each founder and proposed director has to submit an affidavit confirming that he/she is not
convicted of any offence in connection with the promotion, formation or management of any
company, or has not been found guilty of any fraud or misfeasance or of any breach of duty to any
company during the preceding five years and that all the documents filed with the Registrar for
registration of the company contain information that is correct and complete and true to the best of
his knowledge and belief. A separate notarized affidavit is required for each person.
As per the Companies Act Amendment 2017 (July 27, 2017), Section 7, the requirement for
affidavit to be submitted as part of incorporation documents has been replaced with a requirement
of declaration by the directors. However, in practice, companies continue submitting notarized
affidavits.
1 day, simultaneous
INR 10 (stamp paper) +
INR 35 (notarizing) for
each affidavit
India
Doing Business
2020
Page 8
4
Pay stamp duties, file the SPICE form and obtain the certificate of incorporation, DIN, PAN
and TAN
: Registrar of Companies, Ministry of Corporate Affairs (Federal)
Agency
Pursuant to Section 7 (1) of the Companies Act, 2013 and pursuant to Rule 10, 12, 14 and 15 of
Companies (Incorporation) Rules, 2014, the following forms are required to be electronically filed
on the website of the Ministry of Corporate Affairs for incorporation purposes.
It is mandatory for private limited companies to complete the incorporation process using the
SPICe Form (Form INC -32). Applications for director identification number (DIN), Permanent
Account Number (PAN) and a Tax deduction and Collection Account Number (TAN) have been
integrated completely into the SPICe form. The particulars of maximum three directors can be
mentioned in SPICe form and DIN may be allotted to maximum three proposed directors through
this. If new directors are proposed for an existing company, then a separate DIN application can
be submitted.
SPICe eMoA (INC-33) and SPICe eAoA (INC-34) have to be uploaded as ‘Linked Forms’ to SPICe
(INC-32). The documents submitted for SPICe need to be digitally signed by all directors. A digital
signature of a witness is also required for eMoA and eAoA.
A consolidated challan gets generated at the time of filing SPICe(INC-32) which shall contain
applicable fee towards:
(i) Form Fee
(ii) MoA
(iii) AoA
(iv) PAN
(v) TAN
Two re-submissions are permitted for the SPICe form. On approval of SPICe forms, the Certificate
of Incorporation (CoI) is issued with PAN and TAN as allotted by the Income Tax Department. An
electronic mail with Certificate of Incorporation(CoI) as an attachment along with PAN and TAN is
also sent to the user. Finance Act, 2018 amended section 139A of the Income-tax Act, 1961 and
removed the requirement of issuing PAN in the form of a laminated card.
Companies with authorized share capital below INR 1,500,000 are not required to pay filing fees
for eMoA and eAoA.
4 days
Fee schedule for a
company with paid-up
share capital below INR
1,500,000:
- Electronic filing of the
Memorandum of
Association (eMOA): none
- Electronic filing fee for
filing the Articles of
association (eAOA): none
- Electronic filing fee for
Form INC-32 SPICe: none
- Stamp duty: INR 100
- Stamp duty for Articles of
Association: INR 3,000
(INR 500 for every
500,000 or part thereof)
- Stamp duty for
Memorandum of
Association: INR 200
- PAN application: INR 110
(including 18% GST)
- TAN application: INR 65
(including 18% GST)
5
Make a company stamp
: Authorized vendor (Private)
Agency
As per the amendment to the Companies Act 2013, making a company seal is no longer a legal
requirement. However, making a company rubber stamp is still commonly used in practice. The
stamp is normally required to be affixed by a director upon signing on behalf of the company in
order to file several applications relevant to business startup. This includes but is not limited to
opening a bank account, application for registration with the Employee State Insurance
Corporation (ESIC) and application for a company Permanent Account Numbers (PAN).
1 day, simultaneous
INR 350-500
6
Open a bank account
: Bank
Agency
The bank account details must be provided by the company in various post-registration
applications, such as registrations with GST.
After incorporation, company can immediately apply for bank account opening using electronically
provided CoI. Banks have introduced new KYC requirements, and request for multiple ID proofs
as well as address proofs, which results in a longer than usual processing time for providing with
bank account number.
The common documents required for account opening include:
• Certificate of Incorporation (CoI)
• MoA & AoA
• Communication address proof of company
• Registered address proof of company (if different from communication address)
• Board Resolution
• ID Proof of authorized signatory
• PAN card of company (now provided in CoI)
3 days
no charge
India
Doing Business
2020
Page 9
7
Register with Office of Inspector, Mumbai Shops and Establishment Act
: Municipal Corporation of Greater Mumbai
Agency
According to Section 7 of the Bombay Shops and Establishments Act, 1948, the establishment
must be registered as follows:
- Under Section 7(4), the employer must register the establishment in the prescribed manner
within 30 days of the date on which the establishment commences its work.
- Under Section 7(1), the establishment must submit to the local shop inspector Form A and the
prescribed fees for registering the establishment. Supporting documents must be attached,
including a certified true copy of the company's PAN Card, TAN Allotment Letter, Certificate of
Incorporation, Memorandum and Articles of Association, a list of company directors, their
particulars and copies of their PAN Cards.
- Under Section 7(2), after the statement in Form A and the prescribed fees are received and the
correctness of the statement is satisfactorily audited, the certificate for the registration of the
establishment is issued in Form D, according to the provisions of Rule 6 of the Maharashtra
Shops and Establishments Rules of 1961.
Since the amendments in the Maharashtra Shops & Establishment (Amendment) Rules, 2010, the
Schedule for fees for registration & renewal of registration (as per Rule 5) is as follows:
0 employees: INR 120
1 to 5 employees: INR 360
6 to 10 employees: INR 720
11 to 20 employees: INR 1,200
21 to 50 employees: INR 2,400
51 to 100 employees: INR 4,200
101 or more: INR 5,400.
In addition, an annual fee (three times the registration and renewal fees) is charged as trade
refuse charges (TRC), under the Mumbai Municipal Corporation Act, 1888.
7 days, simultaneous
INR 1,200 (registration
fee) + 3 times registration
fee for Trade Refuse
Charges (INR 3,600)
8
Obtain Goods and Service Tax (GST) Registration Number
: Department of Goods and Services Tax, Government of Maharashtra
Agency
GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit Goods
and Service Tax Identification Number (GSTIN) from the GST authorities so that all the operations
of and the data relating to the business can be collected and correlated. Registration under the
GST Act is mandatory if your aggregate annual PAN-based turnover exceeds INR 20,00,000
(Rupees Twenty Lakhs). However, in practice, for any operating business, a GST registration is
done immediately after incorporation.
To apply for a new registration, the following documents are required
- PAN card/details of business
- Valid and accessible e-mail ID and Mobile Number
- Documentary proof of constitution of business
- Documentary proof of promoters/partners - Documentary proof of principal place of business
- Details of Authorised Signatories including photographs and proof of appointment - Details of
Primary Authorised Signatory
- Business bank account details
- Valid Class II or Class III DSC of authorised signatory in case of companies and LLPs; valid
Class II or Class III DSC or Aadhaar (for E-Sign option).
A maximum of 10 Promoters/Partners/Directors can be added in the form. Passport photographs
need to be uploaded of all the Promoters/Partners/Directors whose details you are adding in the
application form. Further, each passport photograph must be in JPEG format and not more than
100 KB.
The first step to the registration process is the application and verification of PAN number, and the
subsequent issue of a Temporary Registration Number (TRN).
The applicant then needs to submit an application in Part B of FORM GST REG-01, duly signed,
along with documents specified.
The application is forwarded to the proper officer who examines it and the accompanying
documents and if found to be in order, approve the grant of registration to the applicant within
three working days from the date of submission of application.
The certificate of registration in FORM GST REG-06 showing the principal place of business and
additional place(s) of business is then made available to the applicant on the Common Portal and
a GSTIN is assigned in the following format:
- two characters for the State code;
- ten characters for the PAN or the Tax Deduction and Collection Account Number;
- two characters for the entity code; and
- one checksum character.
4 days
no charge
India
Doing Business
2020
Page 10
Takes place simultaneously with previous procedure.
9
Register with the Employees' Provident Fund Organization (EPFO) and the Employees'
State Insurance Corporation (ESIC)
: Shram Suvidha Portal of Ministry of Labour and Employment
Agency
The Employees Provident Fund Organization (EPFO) is a statutory organization under the
Ministry of Labor and Employment. The Employees Provident Funds & Miscellaneous Provisions
Act, 1952 applies to an establishment, employing 20 or more persons and engaged in any of the
183 Industries and Classes of business establishments, throughout India excluding the State of
Jammu and Kashmir. Furthermore, new companies are required to register with the Employees'
State Insurance Corporation (ESIC).
On April 30, 2017, an online registration was introduced the Shram Suvidha Portal combining the
EPFO and ESIC registrations into one. However, it was not a preferred method for the majority
since paper copies had still to be filed after the online registration. In April 1, 2018, the electronic
registration process was further enhanced and it became the only option to register for ESIC and
EPFO. EPFO & ESIC registration is now done on the same Shram Suvidha portal
(https://registration.shramsuvidha.gov.in) and in one application. However, the website was
reported to be quite slow and with numerous glitches during the registration process – fields not
accepting information, the screen timing out, etc. As a result, although registration is done
electronically, it can take a long time in practice.
1 day, simultaneous
no charge
10
Register for Profession Tax
: Sales Tax Department, Government of Maharashtra
Agency
Professional Tax in Maharashtra is levied under Maharashtra State Tax on Professions, Trades,
Callings and Employments Act, 1975. It is levied on Company, Firm, Proprietary Concern, Hindu
Undivided Family (HUF), Society, Club, Association of Persons, Corporation or any other
corporate body in Maharashtra.
Professional Tax in Maharashtra for Organisations: An employer organization is required to get
registered under the Profession Tax Act and obtain a Registration Certificate under which the
payment in respect of taxes deducted from employees’ salaries can be made. Also as a firm, the
organization is required to obtain Enrollment Certificate and pay Profession tax on its behalf.
Delays in obtaining Enrollment or Registration Certificate are penalized at the rate of Rs. 2/-
(Rupees Two) per Day. In case a false information regarding enrollment is provided, then the
Penalty is 3 times of tax amount. The interest for non-payment / delayed payment of profession
tax is 1.25% per month and the Maharashtra state authority can also impose a penalty of 10% of
the amount of tax not paid/short paid/delayed.
There are 2 types of Profession Tax payers:
a) Profession Tax Enrollment Certificate (PTEC) : Any person engaged in Profession,
Trade and Callings and falling under one or the other of the classes mentioned in the
second column of Schedule I shall obtained PTEC
b) Profession Tax Registration Certificate (PTRC) : Every employer who has
employed even a single employee whose salary is above the prescribed limit for
deducting Profession Tax shall obtain PTRC.
All new companies must be first obtain a Profession Tax Registration Certificate. And then
proceed to enroll all employees for a Profession Tax Enrollment Certificate for any of the
employees who have never been employed (for employees who have been previously enrolled,
there is no need to re-enroll).
Less than one day
(online procedure)
no charge
India
Doing Business
2020
Page 11
Starting a Business - Delhi
Figure – Starting a Business in Delhi – Score
Procedures
47.1
Time
83.4
Cost
97.4
Paid-in min. capital
100.0
Figure – Starting a Business in Delhi and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
94.1: China (Rank: 27)
89.3: Pakistan (Rank: 72)
86.1: Mexico (Rank: 107)
82.4: Bangladesh (Rank: 131)
82.0: Delhi
81.2: Mumbai
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Standardized Company
Legal form
Private Limited Company
Paid-in minimum capital requirement
No minimum
City Covered
Delhi
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Procedure – Men (number)
10
7.1
4.9
1 (2 Economies)
Time – Men (days)
17
14.5
9.2
0.5 (New Zealand)
Cost – Men (% of income per capita)
5.3
8.3
3.0
0.0 (2 Economies)
Procedure – Women (number)
10
7.3
4.9
1 (2 Economies)
Time – Women (days)
17
14.6
9.2
0.5 (New Zealand)
Cost – Women (% of income per capita)
5.3
8.3
3.0
0.0 (2 Economies)
Paid-in min. capital (% of income per capita)
0.0
0.2
7.6
0.0 (120 Economies)
India
Doing Business
2020
Page 12
Figure – Starting a Business in Delhi – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 * 3 4 * 5 6 7 * 8 9 * 10
0
2
4
6
8
10
12
14
16
Time (days)
0
0.5
1
1.5
2
2.5
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
India
Doing Business
2020
Page 13
Details – Starting a Business in Delhi – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Obtain digital signature certificate online from private agency authorized by the Ministry of
Corporate Affairs (National)
: Certified private agencies
Agency
The applicant must obtain a Class-II Digital Signature Certificate from a certification agency
authorized by the Controller of Certification Agencies. These include private agencies like NIC, E-
Mudhra, MTNL Trust line, to which company directors submit the prescribed application form
along with notarized proof of identity and address.
For obtaining DSC, along with the documents (i.e., Proof of Identity and Proof of Address), a
verification video must be submitted by the applicant, stating the name, company name, mobile
number, email and intention for applying for DSC. Upon submitting the online application, a hard
copy of the form has to be submitted along with supporting documents to the authorized private
agency.
A Class-II Digital Signature Certificate can be obtained for either a period of 1 year or a period of 2
years, and then needs to be renewed for another 1-2 years upon payment of renewal fees. Each
agency has its own fee structure, starting from INR 700. The cost will vary in accordance with the
duration of the Digital Signature Certificate. Once the Digital Signature Certificate is obtained, the
authorized personnel (directors/manager/secretary) are required to register the same with MCA for
statutory e-filing.
2 days
INR 700 to INR 2,500 per
Digital Signature
Certificate
2
Reserve the company name online through "Reserve Unique Name" system (RUN)
: Registrar of Companies (ROC)
Agency
The company first looks up the availability of a name on the MCA website
(http://www.mca.gov.in/mcafoportal/showCheckCompanyName.do), and then goes on to create a
new user account under the RUN link in the MCA website.
Online service for reservation of name (RUN or "Reserve Unique Name") was introduced through
the web service available on mca.gov.in. This service has replaced the Form INC-1 for name
approval. The following are the fields to be entered in Web-based Application :
- Entity Type: It is required to select the applicable option, i.e. New Company (Others) / Part I
Company, Producer Company, Unlimited Company, Private (OPC), IFSC Company, Section 8
Company, Nidhi Company.
- Corporate Identification Number (CIN): Only in case an Existing Company is applying for the
Change in Name, it is required to enter its CIN.
- Proposed Name: A Proposed Name option required to be entered here (the form allows to
provide 2 names in the form). After entering a Name, MCA has provided Auto Check Facility to
check the availability of the Name, accordingly the Applicant and enter the new Optional name, in
case the Entity already registered with such proposed name and again has to make Auto Check.
When the MCA System provides a Green Remark, Applicant can submit the Applicant with such
name option for further Approval.
- Comments: In this field, Applicant can provide the details related to the Proposed Company and
activities including the Prior Approvals and TradeMark Registration Details, Resolution (for
Existing Company / Foreign Subsidiary Registration).
All applicable documents must be scanned in a single file to be attached to the Web-based
Application. After providing the details in the fields and requisite attachments, Applicant can submit
the Form Online with the prescribed fees. Name will be reserved only for 20 Days within which the
Applicant and/or Promoters are required to file form with MCA-Concerned ROC with requisite
documents as per the Incorporation Rules 2014 as per the Companies Act 2013.
As of April 2016 companies can also complete the name reservation through the SPICe form.
However, in practice, companies reserve the company name before completing the application for
incorporation, as that way company name is confirmed and there is no ambiguity and no chance
of SPICe form being rejected due to name rejection.
1-3 days
INR 1,000
3
Prepare and notarize affidavit by each founder and proposed director
: Notary
Agency
Each founder and proposed director has to submit an affidavit confirming that he/she is not
convicted of any offence in connection with the promotion, formation or management of any
company, or has not been found guilty of any fraud or misfeasance or of any breach of duty to any
company during the preceding five years and that all the documents filed with the Registrar for
registration of the company contain information that is correct and complete and true to the best of
his knowledge and belief. A separate notarized affidavit is required for each person.
As per the Companies Act Amendment 2017 (July 27, 2017), Section 7, the requirement for
affidavit to be submitted as part of incorporation documents has been replaced with a requirement
of declaration by the directors. However, in practice, companies continue submitting notarized
affidavits.
1 day, simultaneous
INR 10 (stamp paper) +
INR 35 (notarizing) for
each affidavit
India
Doing Business
2020
Page 14
4
Pay stamp duties, file the SPICE form and obtain the certificate of incorporation, DIN, PAN
and TAN
: Registrar of Companies (ROC)
Agency
Pursuant to Section 7 (1) of the Companies Act, 2013 and pursuant to Rule 10, 12, 14 and 15 of
Companies (Incorporation) Rules, 2014, the following forms are required to be electronically filed
on the website of the Ministry of Corporate Affairs for incorporation purposes.
It is mandatory for private limited companies to complete the incorporation process using the
SPICe Form (Form INC -32). Applications for director identification number (DIN), Permanent
Account Number (PAN) and a Tax deduction and Collection Account Number (TAN) have been
integrated completely into the SPICe form. The particulars of maximum three directors can be
mentioned in SPICe form and DIN may be allotted to maximum three proposed directors through
this. If new directors are proposed for an existing company, then a separate DIN application can
be submitted.
SPICe eMoA (INC-33) and SPICe eAoA (INC-34) have to be uploaded as ‘Linked Forms’ to SPICe
(INC-32). The documents submitted for SPICe need to be digitally signed by all directors
A consolidated challan gets generated at the time of filing SPICe(INC-32) which shall contain
applicable fee towards:
(i) Form Fee
(ii) MoA
(iii) AoA
(iv) PAN
(v) TAN
Two re-submissions are permitted for the SPICe form. On approval of SPICe forms, the Certificate
of Incorporation (CoI) is issued with PAN and TAN as allotted by the Income Tax Department. An
electronic mail with Certificate of Incorporation(CoI) as an attachment along with PAN and TAN is
also sent to the user. Finance Act, 2018 amended section 139A of the Income-tax Act, 1961 and
removed the requirement of issuing PAN in the form of a laminated card.
4 days
Fee schedule for a
company with paid-up
share capital below INR
1,500,000:
- Electronic filing of the
Memorandum of
Association (eMOA): none
- Electronic filing fee for
filing the Articles of
association (eAOA): none
- Electronic filing fee for
Form INC-32 SPICe: none
- Stamp duty: INR 10
- Stamp duty for Articles of
Association: INR 1,703
(0.15% of capital)
- Stamp duty for
Memorandum of
Association: INR 200
- PAN application: INR 110
(including 18% GST)
- TAN application: INR 65
(including 18% GST)
5
Make a company stamp
: Authorized vendor (Private)
Agency
As per the amendment to the Companies Act 2013, making a company seal is no longer a legal
requirement. However, making a company rubber stamp is still widely used in practice. The stamp
is normally required to be affixed by a director upon signing on behalf of the company in order to
file several applications relevant to business startup. A seal is also required in order to open a
bank account.
1 day, simultaneous
INR 500-1,000
6
Open a bank account
: Bank
Agency
The bank account details must be provided by the company in various post-registration
applications, such as registrations with GST.
After incorporation, company can immediately apply for bank account opening using electronically
provided CoI. Banks have introduced new KYC requirements, and request for multiple ID proofs
as well as address proofs, which results in a longer than usual processing time for providing with
bank account number.
The common documents required for account opening include:
• Certificate of Incorporation (CoI)
• MoA & AoA
• Communication address proof of company
• Registered address proof of company (if different from communication address)
• Board Resolution
• ID Proof of authorized signatory
• PAN card of company (now provided in CoI)
3 days
no charge
India
Doing Business
2020
Page 15
7
Obtain Goods and Service Tax (GST) Registration Number
: Department of Trade and Taxes, Government of NCT of Delhi
Agency
GST Registration of a business with the tax authorities implies obtaining a unique, 15-digit Goods
and Service Tax Identification Number (GSTIN) from the GST authorities so that all the operations
of and the data relating to the business can be collected and correlated. Registration under the
GST Act is mandatory if your aggregate annual PAN-based turnover exceeds INR 20,00,000
(Rupees Twenty Lakhs). However, in practice, for any operating business, a GST registration is
done immediately after incorporation.
To apply for a new registration, the following documents are required
- PAN card/details of business
- Valid and accessible e-mail ID and Mobile Number
- Documentary proof of constitution of business
- Documentary proof of promoters/partners - Documentary proof of principal place of business
- Details of Authorised Signatories including photographs and proof of appointment - Details of
Primary Authorised Signatory
- Business bank account details
- Valid Class II or Class III DSC of authorised signatory in case of companies and LLPs; valid
Class II or Class III DSC or Aadhaar (for E-Sign option).
A maximum of 10 Promoters/Partners/Directors can be added in the form. Passport photographs
need to be uploaded of all the Promoters/Partners/Directors whose details you are adding in the
application form. Further, each passport photograph must be in JPEG format and not more than
100 KB.
The first step to the registration process is the application and verification of PAN number, and the
subsequent issue of a Temporary Registration Number (TRN).
The applicant then needs to submit an application in Part B of FORM GST REG-01, duly signed,
along with documents specified.
The application is forwarded to the proper officer who examines it and the accompanying
documents and if found to be in order, approve the grant of registration to the applicant within
three working days from the date of submission of application.
The certificate of registration in FORM GST REG-06 showing the principal place of business and
additional place(s) of business is then made available to the applicant on the Common Portal and
a GSTIN is assigned in the following format:
- two characters for the State code;
- ten characters for the PAN or the Tax Deduction and Collection Account Number;
- two characters for the entity code; and
- one checksum character.
3 days
no charge
8
Register with the Employees' Provident Fund Organization (EPFO) and the Employees'
State Insurance Corporation (ESIC)
: Shram Suvidha Portal of Ministry of Labour and Employment
Agency
The Employees Provident Fund Organization (EPFO) is a statutory organization under the
Ministry of Labor and Employment. The Employees Provident Funds & Miscellaneous Provisions
Act, 1952 applies to an establishment, employing 20 or more persons and engaged in any of the
183 Industries and Classes of business establishments, throughout India excluding the State of
Jammu and Kashmir. Furthermore, new companies are required to register with the Employees'
State Insurance Corporation (ESIC).
On April 30, 2017, an online registration was introduced the Shram Suvidha Portal combining the
EPFO and ESIC registrations into one. However, it was not a preferred method for the majority
since paper copies had still to be filed after the online registration. In April 1, 2018, the electronic
registration process was further enhanced and it became the only option to register for ESIC and
EPFO. EPFO & ESIC registration is now done on the same Shram Suvidha portal
(https://registration.shramsuvidha.gov.in) and in one application. However, the website was
reported to be quite slow and with numerous glitches during the registration process – fields not
accepting information, the screen timing out, etc. As a result, although registration is done
electronically, it can take a long time in practice.
1 day, simultaneous
no charge
9
Visit EPFO to obtain approval of registration
: Employees' Provident Fund Organization
Agency
After online registration for EPFO, company visits the assistant labor commission in EPFO in
order to obtain approval for registration. This is a common practice in Delhi. In some cases,
several visits might be required prior the approval is provided.
3 days
no charge
10
Register online under the Delhi Shops and Establishments Act
: Department of Labor - Government of NCT of Delhi
Agency
Under the Delhi Shops and Establishments Act 1954, the company shall send to the Chief
Inspector a statement in prescribed form A containing:
(a) the name of the employer and the manager
(b) the postal address of the establishment
(c) the name of the establishment,
(d) the category of the establishment, i.e. whether it is a shop/commercial establishment
(e) the number of employees working in the establishment; and
(f) such other particulars as may be prescribed.
Upon receipt of the statement, a registration certificate will be generated online instantly.
Less than one day
(online procedure),
simultaneous
no charge
India
Doing Business
2020
Page 16
Takes place simultaneously with previous procedure.
India
Doing Business
2020
Page 17
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Procedures to legally build a warehouse (number)
Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
•
Submitting all required notifications and receiving all necessary
inspections
•
Obtaining utility connections for water and sewerage
•
Registering and selling the warehouse after its completion
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Building quality control index (0-15)
Quality of building regulations (0-2)
•
Quality control before construction (0-1)
•
Quality control during construction (0-3)
•
Quality control after construction (0-3)
•
Liability and insurance regimes (0-2)
•
Professional certifications (0-4)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
The construction company (BuildCo):
- Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
business city. For 11 economies the data are also collected for the second largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
completion.
The warehouse:
- Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a licensed architect. If
preparation of the plans requires such steps as obtaining further documentation or getting prior
approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
requirements).
The water and sewerage connections:
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
India
Doing Business
2020
Page 18
Dealing with Construction Permits - Mumbai
Figure – Dealing with Construction Permits in Mumbai – Score
Procedures
44.0
Time
79.3
Cost
72.9
Building quality control index
93.3
Figure – Dealing with Construction Permits in Mumbai and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
84.2: Delhi
77.3: China (Rank: 33)
72.4: Mumbai
68.8: Mexico (Rank: 93)
66.5: Pakistan (Rank: 112)
61.1: Bangladesh (Rank: 135)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Standardized Warehouse
Estimated value of warehouse
INR 6,968,643.60
City Covered
Mumbai
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
19
14.6
12.7
None in 2018/19
Time (days)
98
149.7
152.3
None in 2018/19
Cost (% of warehouse value)
5.4
12.5
1.5
None in 2018/19
Building quality control index (0-15)
14.0
9.4
11.6
15.0 (6 Economies)
India
Doing Business
2020
Page 19
Figure – Dealing with Construction Permits in Mumbai – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 3 4 5 6 7 8 9 10 11 12 * 13 14 * 15 * 16 17 18 19
0
20
40
60
80
Time (days)
0
0.5
1
1.5
2
2.5
Cost (% of warehouse value)
Time (days) Cost (% of warehouse value)
India
Doing Business
2020
Page 20
Figure – Dealing with Construction Permits in Mumbai and comparator economies – Measure of Quality
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
2
4
6
8
10
12
14
16
Index score
14.0
10.0
15.0
11.7
13.0
15.0
9.4
Details – Dealing with Construction Permits in Mumbai – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Obtain latest Property Register Card (P.R. Card) in words from the Revenue Department
: Revenue Department
Agency
The Property Register Card (P.R. Card) is a record showing the (i) Land ownership details; (ii)
historical ownership details; (iii) City Title Survey Number (CTS); (iv) Plot Number; (v) area of the
land; (vi) records of encumberances and mutations of the holdings held by the Revenue
Department about the Building Land/Plot. This P.R. Card is a mandatory document to be provided
to the MCGM when applying for a Building Permit. The Application for the P.R. Card is made to the
City Survey Officer (An Officer of the Revenue Department) by affixing a Rs.10 Court Fee Stamp.
10 days
INR 60
2
Obtain latest authenticated City Title Survey (CTS) Plan
: Collector's Office (Revenue Records Department)
Agency
The latest copy of the City Title Survey (CTS) Plan need to be obtained from Collector's office
(Revenue Records Department), and has to be certified by Land Records Officer as an authentic
document. This is required as MCGM needs to be certain that there have been no changes to
existing boundaries or structures since the original CTS plan was issued.
7 days
no charge
3
Submit application and design plans and pay scrutiny fee
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
BuildCo submits an online application Common Application Form of Online Building Plan Approval
System (OBPS) - alongwith all requisite documents and PreDCR drawings of proposed work at
http://autodcr.mcgm.gov.in. After uploading the drawings and essential documents, on payment of
scrutiny fees online the file/application will be accepted online by MCGM.
The concerned officer at the zonal building proposal office will scrutinize the proposal and
essential documents as per procedure. If all documents are in order and the file is complete,
BuildCo can proceed to pay the scrutiny fees online in the portal. No-Objection Certificates
(NOCs) for various agencies, including Stormwater and Drain Department, Sewerage Department,
Hydraulic Engineer Department, Roads and Traffic Department are obtained through the OBPS.
Uploaded PreDCR drawings will run through AutoDCR software for the verification of consumed
FSI in the proposal and to check if the various parameters of the proposed building are in
consonance with the provisions of DCR and policies in force. The building proposal office will
submit the file to the competent authority online for approval of required concessions, if any. On
receipt of approval to the concessions, the IOD will be given at Zonal EE(BP).
0.5 days
INR 26,385
4
Obtain no-objection certifcates (NOC) from various agencies
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
Once the application is submitted through the Online Building Plan Approval System (OBPS)
portal, the various agencies selected in the application who need to provide no objection
certificates review the proposal, and provide their NOCs in the portal.
21 days
no charge
5
Hire licensed fire safety consultant to obtain certification for Fire NOC
: Private consultant
Agency
BuildCo needs to hire a licensed fire safety consultant who prepares the Building Details Form 2
(for Active Fire Safety Measures) and at completion prepares the Form A along with its Annexure
about installation of all fire-fighting requirements / installations stipulated by the Mumbai Fire
Brigade.
1 day
INR 100,000
6
Obtain Intimation of Disapproval and pay fees
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
Intimation of Disapproval (IOD) is granted as per the provisions of Section 346 of MMC Act 1888.
The IOD includes various conditions to be complied before requesting for further approvals.
Upon submission of online application through CAF, the IOD is issued within 29 days.
29 days
INR 4,200
7
Obtain excavation permission
: Office of the Collector, Mumbai/Suburban District
Agency
Excavation permission needs to be obtained from Office of Collector. This permit is a requirement
for the Construction and Debris Management Plan to be submitted by BuildCo to municipality. The
cost of the permit depends on the amount of soil being excavated.
7 days
INR 40,000
India
Doing Business
2020
Page 21
Takes place simultaneously with previous procedure.
8
Obtain plinth commencement certificate and pay development charges
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
Once IOD has been issued, the applicant may submit a request for the commencement certificate
on the Online Building Building Approval System (OBPS) portal. The documents and NOC
submitted by the applicants are verified on the portal by the staff (Licesnsed Engineer, Sub-
Engineer, Assistant Engineer, Executive Engineer) and the necessary commencement certificate
is issued through the portal. After payment of development charges and other applicable premium
the commencement certificate is issued within 7 days.
0.5 days
INR 149,708
9
Request and receive inspection of plinth
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
1 day
no charge
10
Request and obtain further commencement certificate
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
The building permit is done in 2 steps. First, BuildCo must obtain the permit up to the plinth level.
Once the plinth level has been completed, there is an inspection to verify that is in compliance
with approved plans. It is only after this inspection has been done and approval obtained that the
BuildCo can move on with the construction and start the superstructure of the warehouse. But in
order to do so, it is necessary to obtain a permit to start building the superstructure.
7 days
no charge
11
Request completion NOCs from various agencies through the Common Completion
Request Form (CCRF)
: Chief Fire Office, Municipal Corporation of Greater Mumbai
Agency
0.5 days
no charge
12
Receive inspection from Storm Water and Drain Department
: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai
Agency
The Assistant Engineer of the Municipal Corporation makes the inspection. There are two
inspections: one before the connections are completed and another after completion. The
inspection would not take more than a day. An officer of the Municipal Corporation inspects the
premises and prepares a report on the connection.
1 day
no charge
13
Receive inspection from Sewerage Department
: Sewerage Department, Municipal Corporation of Greater Mumbai
Agency
1 day
no charge
14
Obtain water connection from Hydraulic Engineer
: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai
Agency
3 days
no charge
15
Receive inspection from Roads & Traffic Department
: Roads &Traffic Department, Municipal Corporation of Greater Mumbai
Agency
1 day
no charge
16
Receive inspection from Chief Fire Office
: Chief Fire Office, Municipal Corporation of Greater Mumbai
Agency
1 day
no charge
17
Submit letter stating completion of building works to obtain an occupancy certificate and
certificate of completion
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
The owner, through a licensed plumber, shall furnish a drainage completion certificate to certify
that the works were completed according to approved drainage plans. The licensed surveyor,
engineer, or architect who has supervised the construction shall furnish a building completion
certificate to certify that the building has not deviated from the approval plans. These certifications
are submitted online through the portal. Following the reception of both certificates of completion
MCGM shall inspect the work, and after satisfying that there is no deviation from the approved
plans, issue a certificate of acceptance of the completion of the work.
0.5 days
no charge
18
Receive final inspection from Building Proposal Office
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
1 day
no charge
19
Obtain Completion and Occupancy Certificate from online portal
: Building Proposal Office, Municipal Corporation of Greater Mumbai
Agency
Once the final inspection has been concluded and the final plans are stamped by the Building
Proposal Office, the combined Completion certificate and Occupancy certificate are issued. The
final stamped plans by the Building Proposal Office and a copy of the Completion and Occupancy
certificate are forwarded to the Hydraulic Engineer (Water) Department.
Fees for water connection include:
• Water connection charges: INR 1,060.00
• Water meter: INR 150.00
• Refundable security deposit towards water charges bills at INR 25.00 per 1,000 liter + 60% of
sewerage charges for the requirement of the building
Sewer fees are INR 50,000
14 days
INR 57,713
India
Doing Business
2020
Page 22
Details – Dealing with Construction Permits in Mumbai – Measure of Quality
Answer
Score
Building quality control index (0-15)
14.0
Quality of building regulations index (0-2)
2.0
How accessible are building laws and regulations in your economy? (0-1)
Available online; Free
of charge.
1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any
accessible website, brochure or pamphlet? (0-1)
List of required
documents; Fees to
be paid; Required
preapprovals.
1.0
Quality control before construction index (0-1)
1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing
building regulations? (0-1)
Licensed architect;
Licensed engineer.
1.0
Quality control during construction index (0-3)
2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2)
Inspections by in-
house engineer;
Inspections at various
phases.
1.0
Do legally mandated inspections occur in practice during construction? (0-1)
Mandatory
inspections are
always done in
practice.
1.0
Quality control after construction index (0-3)
3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved
plans and regulations? (0-2)
Yes, final inspection
is done by
government agency;
Yes, in-house
engineer submits
report for final
inspection.
2.0
Do legally mandated final inspections occur in practice? (0-1)
Final inspection
always occurs in
practice.
1.0
Liability and insurance regimes index (0-2)
2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use
(Latent Defect Liability or Decennial Liability)? (0-1)
Architect or engineer;
Professional in
charge of the
supervision;
Construction
company; Owner or
investor.
1.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)
Architect or engineer;
Professional in
charge of the
supervision;
Construction
company.
1.0
Professional certifications index (0-4)
4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans
or drawings are in compliance with existing building regulations? (0-2)
Minimum number of
years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer.
2.0
India
Doing Business
2020
Page 23
What are the qualification requirements for the professional who supervises the construction on the ground? (0-
2)
Minimum number of
years of experience;
University degree in
engineering,
construction or
construction
management; Being
a registered architect
or engineer.
2.0
India
Doing Business
2020
Page 24
Dealing with Construction Permits - Delhi
Figure – Dealing with Construction Permits in Delhi – Score
Procedures
76.0
Time
74.8
Cost
86.2
Building quality control index
100.0
Figure – Dealing with Construction Permits in Delhi and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
84.2: Delhi
77.3: China (Rank: 33)
72.4: Mumbai
68.8: Mexico (Rank: 93)
66.5: Pakistan (Rank: 112)
61.1: Bangladesh (Rank: 135)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Standardized Warehouse
Estimated value of warehouse
INR 6,968,643.60
City Covered
Delhi
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
11
14.6
12.7
None in 2018/19
Time (days)
113.5
149.7
152.3
None in 2018/19
Cost (% of warehouse value)
2.8
12.5
1.5
None in 2018/19
Building quality control index (0-15)
15.0
9.4
11.6
15.0 (6 Economies)
India
Doing Business
2020
Page 25
Figure – Dealing with Construction Permits in Delhi – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 4 5 6 7 8 9 10 11
0
20
40
60
80
100
Time (days)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Cost (% of warehouse value)
Time (days) Cost (% of warehouse value)
India
Doing Business
2020
Page 26
Figure – Dealing with Construction Permits in Delhi and comparator economies – Measure of Quality
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
2
4
6
8
10
12
14
16
Index score
15.0
10.0
15.0
11.7
13.0
14.0
9.4
Details – Dealing with Construction Permits in Delhi – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Submit online Common Application Form along with requisite building permit fees and
drawings
: Municipal Corporation of Delhi
Agency
BuildCo applies for the sanction of the building plans online through the Common Application
Form by submitting the following documents:
1. Building plan (Site plan, set back, architectural plans)
2. Proof of ownership
3. Specifications of the proposed construction
4. Supervision certificate signed by the licensed architect/engineer, supervisor and plumber;
5. Structural-stability Certificate signed by the licensed architect/engineer along with a copy of
registration certificate
6. Rain Water-Harvesting Certificate in case of plot size more than 100 square meters signed by
the licensed architect and owner
7. No Nuisance/Construction Debris Certificate signed by the owner
8.Latest property tax receipt
All the plans must be signed by the licensed architect/engineer and owner registered with the
Council of Architects/Institution of Engineers and shall indicate their names, addresses, license
and enrollment numbers.
0.5 days
INR 3,601
2
Request and obtain release of building sanction plans
: Municipal Corporation of Delhi
Agency
The application submit the proposal through the Common Application Form (CAF), and the no
objection certificates required for various agencies are marked on the CAF. The concerned officers
from the various departments receive the proposal request for NOCs through the online portal,
and provide their clearance online as well. Once the NOCs are obtained, the plans go through
three levels of approvals, the sub-engineer, assistant engineer, and then the Chief
Architect/Engineer, who sanctions/approves the plans. The approved plans go back to the sub-
engineer, who releases the building sanction plan.
30 days
INR 76,689
3
Submit online notice of completion up to the plinth level online
: Municipal Corporation of Delhi
Agency
BuildCo must notify the MCD of the completion of the plinth level. MCD inspects the construction
and submits any objections, if necessary. Mandatory inspections are carried out at two stages: at
plinth level and at completion. Routine inspections may be carried in between and the Municipal
Corporation of Delhi reserves the right to inspect the premises before, during and after the
construction.
0.5 days
no charge
4
Request and receive inspection at the plinth level
: Municipal Corporation of Delhi
Agency
BuildCo must notify the MCD of the completion of the plinth level,. MCD inspects the construction
and submits any objections, if necessary. Mandatory inspections are carried out at two stages: at
plinth level and at completion. Routine inspections may be carried in between and the Municipal
Corporation of Delhi reserves the right to inspect the premises before, during and after the
construction.
1 day
INR 15
5
Obtain online approval of the plinth completion and and further continuation
: Municipal Corporation of Delhi
Agency
This certificate certifies that the construction has reached the plinth level and that it has been
inspected and the construction can continue with the superstructure.
14 days
no charge
India
Doing Business
2020
Page 27
Takes place simultaneously with previous procedure.
6
Submit notice of completion and request final inspection
: Municipal Corporation of Delhi
Agency
The building company must submit a notice of completion through the licensed architect/engineer
or supervisor who has supervised the construction attaching the following documents:
1. Lease-deed/sale deed
2. Completion plan
3. Photographs taken from different angles so as to show the overall view of the building
4. Original sanctioned building plan
5. Water Connection Sanction and Sewerage Connection Sanction from Delhi Jal Board
6. Structural-stability Certificate signed by the licensed architect/engineer along with the structural
drawings
7. Certificate of licensed architect/engineer or supervisor
8. Extension of time from the lessor if required
9. Rain Water-Harvesting Certificate in case of plot size more than 100 square meters signed by
the licensed architect and owner
10. Affidavit/Undertaking of licensed architect/engineer or supervisor (as the case may be)
11. Affidavit of owner
12. A statement indicating deviations that are carried out and compounding fee payable
0.5 days
INR 2,601
7
Receive final inspection of the construction
: Municipal Corporation of Delhi
Agency
In practice this can take up to one week.
1 day
no charge
8
Receive site inspection from the Fire Department
: Fire Department
Agency
Once request for NOC from Fire Department is submitted online, an inspection is conducted. The
completion certificate can only be released once the NOC from Chief Fire Officer is obtained.
1 day
no charge
9
Obtain completion/occupancy permit
: Municipal Corporation of Delhi
Agency
30 days
no charge
10
Request water and sewer connection approval
: Delhi Jal Board
Agency
The building company must submit water and sewer connection application forms. Documents to
be attached:
(1) Proof of identity document: photocopy of voter ID card, ration card, PAN card, driving license
or post card
(2) Property ownership document: photocopy of GPA, allotment letter, government allotment letter,
sale deed or NOC from landlord
(3) Proof of residence: photocopy of driving license, passport, election I card
(4) Sanction of Water Supply Scheme
It is compulsory to provide the document number of the attached documents.
Delhi Jal Board has integrated the process of obtaining an Excavation Permit from Municipal
Corporation of Delhi by charging a road restoration charges for water and sewer connections on
behalf of MCD.
1 day
INR 109,800
11
Receive on-site inspection for water and sewer connection and receive approval
: Delhi Jal Board
Agency
An inspection of the site will be performed by a Survey Officer.
34 days
no charge
India
Doing Business
2020
Page 28
Details – Dealing with Construction Permits in Delhi – Measure of Quality
Answer
Score
Building quality control index (0-15)
15.0
Quality of building regulations index (0-2)
2.0
How accessible are building laws and regulations in your economy? (0-1)
Available online; Free
of charge.
1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any
accessible website, brochure or pamphlet? (0-1)
List of required
documents; Fees to
be paid; Required
preapprovals.
1.0
Quality control before construction index (0-1)
1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing
building regulations? (0-1)
Licensed architect;
Licensed engineer.
1.0
Quality control during construction index (0-3)
3.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2)
Inspections by in-
house engineer;
Inspections at various
phases; Risk-based
inspections.
2.0
Do legally mandated inspections occur in practice during construction? (0-1)
Mandatory
inspections are
always done in
practice.
1.0
Quality control after construction index (0-3)
3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved
plans and regulations? (0-2)
Yes, final inspection
is done by
government agency;
Yes, in-house
engineer submits
report for final
inspection.
2.0
Do legally mandated final inspections occur in practice? (0-1)
Final inspection
always occurs in
practice.
1.0
Liability and insurance regimes index (0-2)
2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use
(Latent Defect Liability or Decennial Liability)? (0-1)
Architect or engineer;
Professional in
charge of the
supervision;
Construction
company.
1.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)
Architect or engineer;
Professional in
charge of the
supervision;
Construction
company.
1.0
Professional certifications index (0-4)
4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans
or drawings are in compliance with existing building regulations? (0-2)
Minimum number of
years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer.
2.0
India
Doing Business
2020
Page 29
What are the qualification requirements for the professional who supervises the construction on the ground? (0-
2)
Minimum number of
years of experience;
University degree in
engineering,
construction or
construction
management; Being
a registered architect
or engineer; There
are no specific
requirements.
2.0
India
Doing Business
2020
Page 30
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to obtain an electricity connection (number)
Submitting all relevant documents and obtaining all necessary
clearances and permits
•
Completing all required notifications and receiving all necessary
inspections
•
Obtaining external installation works and possibly purchasing
material for these works
•
Concluding any necessary supply contract and obtaining final
supply
•
Time required to complete each procedure (calendar days)
Is at least 1 calendar day
•
Each procedure starts on a separate day
•
Does not include time spent gathering information
•
Reflects the time spent in practice, with little follow-up and no
prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Value added tax excluded
•
The reliability of supply and transparency of tariffs index (0-8)
Duration and frequency of power outages (0–3)
•
Tools to monitor power outages (0–1)
•
Tools to restore power supply (0–1)
•
Regulatory monitoring of utilities’ performance (0–1)
•
Financial deterrents limiting outages (0–1)
•
Transparency and accessibility of tariffs (0–1)
•
Price of electricity (cents per kilowatt-hour)*
Price based on monthly bill for commercial warehouse in case
study
•
*Note:
measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Doing Business
Case study assumptions
To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
The electricity connection:
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
network and is either overhead or underground, whichever is more common in the area where the
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
owners’ private property because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has already been
completed up to and including the customer’s service panel or switchboard and the meter base.
The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
India
Doing Business
2020
Page 31
Getting Electricity - Mumbai
Figure – Getting Electricity in Mumbai – Score
Procedures
83.3
Time
72.2
Cost
99.9
Reliability of supply and transparency of
tariff index
87.5
Figure – Getting Electricity in Mumbai and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
95.4: China (Rank: 12)
92.6: Delhi
85.7: Mumbai
71.1: Mexico (Rank: 106)
64.0: Pakistan (Rank: 123)
34.9: Bangladesh (Rank: 176)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Mumbai – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 4
0
10
20
30
40
50
60
70
80
Time (days)
0
1
2
3
4
5
6
7
8
9
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Standardized Connection
Name of utility
Adani Electricity Mumbai Limited (AEML)
Price of electricity (US cents per kWh)
20.3
City Covered
Mumbai
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
4
5.5
4.4
3 (28 Economies)
Time (days)
82
86.1
74.8
18 (3 Economies)
Cost (% of income per capita)
8.6
952.6
61.0
0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8)
7
2.7
7.4
8 (26 Economies)
India
Doing Business
2020
Page 32
reflected here, see the summary below.
Figure – Getting Electricity in Mumbai and comparator economies – Measure of Quality
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
1
2
3
4
5
6
7
8
Index score
7
0
7 7
5
6
2.7
India
Doing Business
2020
Page 33
Details – Getting Electricity in Mumbai – Procedure, Time and Cost
Takes place simultaneously with previous procedure.
No.
Procedures
Time to Complete
Associated Costs
1
Submit application to utility and await site inspection
: Adani Electricity Mumbai Limited
Agency
All applications from 100-150 KW can be registered and accepted online over the online portal
(https://iss.adanielectricity.com/MUMBAINSC/frmNewConnection.aspx?
AppsubType=H+jAB1V798s%3d# )
In addition, the following documents need to be submitted alongside the application:
1) Proof of ID of owner (Copy of Certificate of incorporation for a company)
2) Property card (7-12 extract); Title clearance certificate
7 calendar days
INR 75
2
Receive external site inspection by Adani Electricity Mumbai Limited and await estimate
: Adani Electricity Mumbai Limited
Agency
A site inspection is carried out for the following purposes:
a) Technical Feasibility / Load sanction
b) Identifying the route and other details for laying Network (Required for cases requiring RoW
permit)
c) Checking Meter board installation
8
INR 0
3
Pay estimate and receive external connection works
: Adani Electricity Mumbai Limited
Agency
Customers usually pay the connection fees and security deposit after receiving the estimate.
The external works involve:
a) Obtaining online RoW permit (as applicable) through relevant Municipal authorities. Eg. MCGM
Online portal
b) Laying of Service cable, upto the customer's installation
c) Installation of meters and wiring within the meter board
d) Energizing of connection
60 calendar days
INR 11,853.24
4
Submit test report, and receive meter installation
: Adani Electricity Mumbai Limited
Agency
After the completion of the external wiring, the customer's licensed electrical contractor submits
the test report to the utility. Once the report is submitted, the meter installation is scheduled by the
utility.
The utility then finalizes the connection within 5 business days of submitting the test report. The
warehouse can be immediately be energized.
7 calendar days
INR 0
India
Doing Business
2020
Page 34
Details – Getting Electricity in Mumbai – Measure of Quality
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Answer
Reliability of supply and transparency of tariff index (0-8)
7
Total duration and frequency of outages per customer a year (0-3)
2
System average interruption duration index (SAIDI)
2.7
System average interruption frequency index (SAIFI)
2.2
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI
5.0
Mechanisms for monitoring outages (0-1)
1
Does the distribution utility use automated tools to monitor outages?
Yes
Mechanisms for restoring service (0-1)
1
Does the distribution utility use automated tools to restore service?
Yes
Regulatory monitoring (0-1)
1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?
Yes
Financial deterrents aimed at limiting outages (0-1)
1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?
Yes
Communication of tariffs and tariff changes (0-1)
1
Are effective tariffs available online?
Yes
Link to the website, if available online
AEML URL :-
https://www.adanielectricit
y.com/-/media/Project/Ele
ctricity/Regulatory/Tarrif_o
rder_Distribution_Order-
200_of_2017-
12092018.pdf MERC URL
:-
http://www.mercindia.org.i
n/pdf/Order%2058%2042/
Order-
200%20of%202017-
12092018.pdf
Are customers notified of a change in tariff ahead of the billing cycle?
Yes
India
Doing Business
2020
Page 35
Getting Electricity - Delhi
Figure – Getting Electricity in Delhi – Score
Procedures
100.0
Time
96.1
Cost
99.4
Reliability of supply and transparency of
tariff index
75.0
Figure – Getting Electricity in Delhi and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
95.4: China (Rank: 12)
92.6: Delhi
85.7: Mumbai
71.1: Mexico (Rank: 106)
64.0: Pakistan (Rank: 123)
34.9: Bangladesh (Rank: 176)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Delhi – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3
0
5
10
15
20
25
Time (days)
0
10
20
30
40
50
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Standardized Connection
Name of utility
TATA Power Delhi Distribution Limited
Price of electricity (US cents per kWh)
16.3
City Covered
Delhi
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
3
5.5
4.4
3 (28 Economies)
Time (days)
27
86.1
74.8
18 (3 Economies)
Cost (% of income per capita)
46.3
952.6
61.0
0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8)
6
2.7
7.4
8 (26 Economies)
India
Doing Business
2020
Page 36
reflected here, see the summary below.
Figure – Getting Electricity in Delhi and comparator economies – Measure of Quality
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
1
2
3
4
5
6
7
8
Index score
6
0
7 7
5
7
2.7
India
Doing Business
2020
Page 37
Details – Getting Electricity in Delhi – Procedure, Time and Cost
Takes place simultaneously with previous procedure.
No.
Procedures
Time to Complete
Associated Costs
1
Submit application to Tata Power Delhi Distribution Ltd. and await site inspection
: Tata Power Delhi Distribution Ltd.
Agency
Customers with load 50kVA and above apply for new electrical connections online
Following 2 documents are required along with the application form:
(I) Proof of ownership or occupany of the premises (Any of the following):
i) Certified copy of title deed;
ii) Certified copy of registered conveyance deed;
iii) General Power of Attorney (GPA);
iv) Allotment letter/ Possession letter;
v) Valid lease agreement alongwith undertaking that the lease agreement has
been signed by the owner or his authorized representative;
vi) Rent receipt not earlier than 3 (three) months alongwith undertaking that the rent receipt has
been signed by the owner or his authorized representative;
vii) Mutation certificate issued by a Government body such as Local Revenue Authorities or
Municipal Corporation or land owning agencies like DDA/L&DO;
viii)Sub-division agreement;
ix) For bonafide consumers residing in JJ clusters or in other areas with no specific municipal
address, the licensee may accept either ration card or electoral identity card mandatorily having
the same address as a proof of occupancy of the premises.
(II) Proof of identity of the applicant: Any of the following documents shall be accepted as proof of
identity:
i) Electoral identity card;
ii) Passport;
iii) Driving license;
iv) Ration card having photograph;
v) Aadhar card;
vi) PAN card;
vii) Photo identity card issued by any Government agency;
viii)If the applicant is an organization, certificate of incorporation/ registration issued by the
Registrar and proof of authorization /resolution of Board for authorizing the person.
3 calendar days
INR 64,521.61
2
Receive external site inspection from Tata Power and await demand note
: Tata Power Delhi Distribution Ltd.
Agency
TPDDL contacts the customer through phone to make an inspection appointment at customer’s
convenience. Representative of TPDDL will inspect the premises to confirm its eligibility and study
the technical requirements of giving supply to the consumer and fix the position of main cutouts or
circuit breakers and meters and determine the load for the premises in consultation with the
consumer and/or his Licensed Electrical Contractor.
Customer and/or his Licensed Electrical Contractor must be present during external site
inspection.
3 calendar days
INR 0
3
Receive external connection, meter installation and electricity flow
: Tata Power Delhi Distribution Ltd.
Agency
TPDDL will conduct the external connection works, including the fixing of the meter. The utility will
then inspect/ test the installation and connect the warehouse to the grid.
21 calendar days
INR 0
India
Doing Business
2020
Page 38
Details – Getting Electricity in Delhi – Measure of Quality
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Answer
Reliability of supply and transparency of tariff index (0-8)
6
Total duration and frequency of outages per customer a year (0-3)
1
System average interruption duration index (SAIDI)
4.6
System average interruption frequency index (SAIFI)
2.6
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI
5.0
Mechanisms for monitoring outages (0-1)
1
Does the distribution utility use automated tools to monitor outages?
Yes
Mechanisms for restoring service (0-1)
1
Does the distribution utility use automated tools to restore service?
Yes
Regulatory monitoring (0-1)
1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?
Yes
Financial deterrents aimed at limiting outages (0-1)
1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?
Yes
Communication of tariffs and tariff changes (0-1)
1
Are effective tariffs available online?
Yes
Link to the website, if available online
http://tatapower-
ddl.com/UploadedFiles/Ta
riff%20Ad%20English%20
2015.pdf
Are customers notified of a change in tariff ahead of the billing cycle?
Yes
India
Doing Business
2020
Page 39
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally transfer title on immovable property
(number)
Preregistration procedures (for example, checking for liens,
notarizing sales agreement, paying property transfer taxes)
•
Registration procedures in the economy's largest business city.
•
Postregistration procedures (for example, filling title with
municipality)
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day - though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of property
value)
Official costs only (such as administrative fees, duties and
taxes).
•
Value Added Tax, Capital Gains Tax and illicit payments are
excluded
•
Quality of land administration index (0-30)
Reliability of infrastructure index (0-8)
•
Transparency of information index (0–6)
•
Geographic coverage index (0–8)
•
Land dispute resolution index (0–8)
•
Equal access to property rights index (-2–0)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the parties to the
transaction, the property and the procedures are used.
The parties (buyer and seller):
- Are limited liability companies (or the legal equivalent).
- Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
area of the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- Are 100% domestically and privately owned.
- Perform general commercial activities.
The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
- Is fully owned by the seller.
- Has no mortgages attached and has been under the same ownership for the past 10 years.
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
- Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
building codes and legal requirements. The property, consisting of land and building, will be
transferred in its entirety.
- Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
India
Doing Business
2020
Page 40
Registering Property - Mumbai
Figure – Registering Property in Mumbai – Score
Procedures
33.3
Time
67.9
Cost
50.4
Quality of the land administration index
46.7
Figure – Registering Property in Mumbai and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
81.0: China (Rank: 28)
60.2: Mexico (Rank: 105)
49.6: Mumbai
48.6: Pakistan (Rank: 151)
45.8: Delhi
29.0: Bangladesh (Rank: 184)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
9
6.9
4.7
1 (5 Economies)
Time (days)
68
107.8
23.6
1 (2 Economies)
Cost (% of property value)
7.4
7.0
4.2
0.0 (Saudi Arabia)
Quality of the land administration index (0-30)
14.0
9.1
23.2
None in 2018/19
India
Doing Business
2020
Page 41
Figure – Registering Property in Mumbai – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 * 3 4 * 5 * 6 7 8 9
0
10
20
30
40
50
60
Time (days)
0
1
2
3
4
5
6
7
Cost (% of property value)
Time (days) Cost (% of property value)
India
Doing Business
2020
Page 42
Figure – Registering Property in Mumbai and comparator economies – Measure of Quality
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
5
10
15
20
25
30
Index score
14.0
6.5
24.0
16.3
9.8
8.0
9.1
Details – Registering Property in Mumbai – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Conduct a title search at the office of Sub-Registrar of Assurance
: Sub-Registrar of Assurance
Agency
The purchaser should conduct a search of the property in the Registry and the Revenue Office,
noting the location details of the property and the time period to be checked. While investigating
the title it should be verified.
(1) the legal ownership document (i.e. the title document) is in the name of the owner and is duly
stamped and registered before the concerned sub-registrar of assurances. The revenue record is
in the name of the owner, issued by the Revenue Record Department under the seal of the
Tahsildar".
(2) that on the date of purchase the title of the owner for the preceding 30 years (preferably)
shows no mortgage or other encumbrance as still existing on the date of purchase,
(3) the property is transferable and heritable,
(4) the transferor is competent and/or authorized to transfer the property,
(5) the transferee is qualified to be a transferee,
(6) the object or consideration for the transfer is lawful,
(7) the transfer has been made and completed in the manner prescribed by law.
Also, all papers with regard to payment of taxes, the electricity bills and water bills need to be
checked.
If the seller is a Company incorporated under the provisions of the Companies Act, 2013 then it is
prudent to take search in the office of the Registrar of Companies to verify whether there is any
charge on the property registered under the provisions of Section 81 of the Companies Act, 2013.
4 days
INR 750; (INR 25 per year
and search is done over
30 years, the minimum
payment is INR 300)
2
Ensure that property is clear of all local tax dues
: Local authorities
Agency
Non-payment of local property tax can result in the property being attached and sold by the local
body. The last local tax bill will show the previous dues if any and the receipt of payment will
indicate the date on which the payment was made. The receipt is issued by the local body upon
receipt of payment.
Less than one day,
online
no charge
3
Conduct charges search at the Registrar of Companies
: Registrar of Companies
Agency
In case of companies formed under the provisions of Companies Act, 2013 and/or under the
provisions of Companies Act, 1956 as also in case of any Limited Liability Partnership firms, all
charges, modification of charges and satisfaction of charges are required to be compulsorily
registered with the Registrar of Companies. Searches on the website of the Ministry of Company
Affairs can be taken to peruse the charges created.
Less than one day,
online
INR 100
4
Prepare the final sale deed with the purchaser’s lawyer
: Lawyer
Agency
The lawyer prepares the final sale deed and then engrosses the document on green paper leaving
the date and place blank. This document is then submitted for stamping. The fee for the lawyer
varies from transaction to transaction.
7 days
INR 69,686.44; (About 1%
of the property value
(About INR 55,000). This
includes legal fees for due
diligence, drafting the
transfer deed and
monitoring the registration
and mutation process.)
India
Doing Business
2020
Page 43
5
Obtain a certificate for the Tax Deductible at Source
: Income Tax Department (Federal level)
Agency
On June 1, 2013, Section 194IA of the Income Tax became effective. This section establishes that
a Tax Deductible at Source (TDS) of 1% of the property value should be deducted at source from
the amount paid to the seller/transferor of Immovable Property. This provision is only applicable to
properties that have a value over INR 5,000,000. Any sum deducted under section 194-IA shall be
paid to the credit of the Central Government.
The tax deducted is to be paid electronically on the Income Tax Departments website by filling
form 26QB within 7 days from the end of the month in which TDS was deducted. After depositing
the TDS with the government, the buyer is required to give the TDS certificate to the Transferor
(seller). The TDS certificate is generated within 10 days from the date of deposit of TDS. The
purchaser is required to obtain form 26QB and the Transferor is required to obtain form 16B.
7 days
1% of the property value to
be deducted
6
Pay Stamp Duty on the final Sale Deed through franking at the designated bank.
: Designated and authorised Banks and Government Revenue Accounting Department for
online payment
Agency
Since December 2013 stamp duty and registration fees through electronic secured bank treasury
receipt (eSBTR)—an online payment service available round-the-clock has been implemented in
Mumbai and entire Maharashtra.Under this system, a customer can log onto the website of the
authorized bank, click the link for payment of stamp duty/registration fees, enter the necessary
details and pay the duty through the internet banking account. With the printout as proof of the
online payment, the customer can walk into the nominated branches of the bank to get the
eSBTR. The eSBTR is a receipt with security features, which has been designed by India Security
Press, Nashik. Alternatively, there is also a facility to make the data entry online and make the
payment in bank branches. The sub-registrar then has to register the documents attached with the
receipt.
While stamp duty payment can be made online, the e-stamp certificate (proof of payment of stamp
duty) is required to be annexed to the sale deed, is required to be physically collected from the
authorized bank branches.
Payment could be made
1) Online- through credit card, debit card, internet banking for online payment mode.
2) through the process of Simple receipt (receipt printed on A-4 size paper). Payment is made to
Banks,stamp vendors and post offices also who issue these receipts. Payments can be made
through Cash, Cheque, Bank Draft or through electronic payment
3) ESBTR (Electronic Bank and Treasury Receipt) - Few banks have been authorized to issue
ESBTR. Banks accept payment by various modes and then issue these ESBTRs.
Payment through GRAS system- details at https://gras.mahakosh.gov.in/igr/
1 day
INR 418,118.62; (6% of
property value)
7
Execute final sale deed and submit documents to the local office of the Sub-Registrar of
Assurances
: Sub Registrar of Assurances
Agency
The execution of the sale deed in front of the 2 witnesses is commonly done at the same time and
place where the buyer submits documents to the Sub-Registrar.
The documents are submitted to the office of the Sub Registrar of Assurances within whose
jurisdiction the property is located. The authorized signatories of the seller and purchaser are
required to be present along with two witnesses. Once the document is registered, a distinct
document number is assigned to that document. The record of registration is kept in the office of
sub registrar of assurance.
The documents are submitted to the Reader of the Sub-Registrar of Assurances for scrutiny. After
scrutiny, the Reader indicates the registration fee required, which is 1% of the transaction value or
Rs. 30,000/- whichever is less on the document itself. The due registration fee is to be deposited
with the cashier against a receipt. After depositing the fees, the documents are presented before
the Sub-Registrar in accordance with Section 32 of the Registration Act, 1908. Normally, the Seller
hands over the peaceful vacant and physical possession of the property to the buyer simultaneous
to the deed being presented for registration. Upon payment of the required registration fees and
computer service charges in cash, as per the receipt, the document is returned within 30 minutes
of getting the receipt.
The documentation shall include:
(1) Document required to be registered (in duplicate)
(2) Two passport-size photographs of the authorized signatories of both parties.
(3) Photo identification of each party and witnesses i.e. voters' identity card, passport, identity card
issued by Govt. of India, Semi Govt. and Autonomous bodies or identification by a Gazette Officer.
(4) Certified true copies of certificate of incorporation of both seller and purchaser.
(5) Copy of the latest property register card (to be obtained from the City Survey Department) to
indicate that the property does not belong to the government
(6) Copy of the Municipal Tax bill to indicate the year in which the building was constructed
(7) Copy of PAN Card of Income Tax of the Seller and the Buyer annexed along with the Sale
Deed.
The registration fees can be paid e-Challan on GRAS or e-SBTR through the websites of the
authorized participatory banks.
3 days
INR 30,200; (1% of market
value of the property
(Maximum INR 30,000) +
INR 20 per page of final
sale deed for scanning
charges)
India
Doing Business
2020
Page 44
Takes place simultaneously with previous procedure.
8
Apply to the Land & Survey Office for mutation of the title of the property
: Land & Survey Office
Agency
An application for mutation of the title of the property will have to be made to the City Survey and
Land Records office for seeking mutation of the title of the property in the name of the purchaser.
The authorized signatory has to submit the duly signed application along with the affidavit,
indemnity bond and a notarized copy of the registered Sale Deed. After the assessment of the
request for mutation, the City Survey and Land Records office decides the value of the tax on the
property and issues a letter of mutation in favor of the purchaser. The Property Card will also be
updated.
23 days
no charge
9
Apply for name change at Municipal Corporation of Greater Mumbai
: Municipal Corporation of Greater Mumbai
Agency
Once the deed has been registered at the land registry and the Property Card updated, the new
owner must also update the property record at the Municipal Corporation of Greater Mumbai for
tax purposes. This is not automatically done.
30 days
no charge
India
Doing Business
2020
Page 45
Details – Registering Property in Mumbai – Measure of Quality
Answer
Score
Quality of the land administration index (0-30)
14.0
Reliability of infrastructure index (0-8)
6.0
Type of land registration system in the economy:
Deed Registration
System
What is the institution in charge of immovable property registration?
Sub-Registrar office
In what format are past and newly issued land records kept at the immovable property registry of the largest
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Computer/Scanned
1.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,
restrictions and the like)?
Yes
1.0
Institution in charge of the plans showing legal boundaries in the largest business city:
Land Records
Department
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Computer/Fully digital
2.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information
(geographic information system)?
Yes
1.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency
kept in a single database, in different but linked databases or in separate databases?
Separate databases
0.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification
number for properties?
Yes
1.0
Transparency of information index (0–6)
4.5
Who is able to obtain information on land ownership at the agency in charge of immovable property registration
in the largest business city?
Anyone who pays the
official fee
1.0
Is the list of documents that are required to complete any type of property transaction made publicly available–
and if so, how?
Yes, online
0.5
Link for online access:
www.igrmaharashtra.
gov.in under the
heading 'Activities'
and sub heading
'Document
Registration'
http://www.igrmahara
shtra.gov.in/SB_ACTI
VITES/activites_Doc
Registration.aspx
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property
registration in the largest business city made publicly available–and if so, how?
Yes, online
0.5
Link for online access:
www.igrmaharashtra.
gov.in under the
heading 'Publications'
and sub heading 'Fee
Structure'
http://www.igrmahara
shtra.gov.in/SB_PUB
LICATION/DATA/Regi
stration%20fee%20ta
ble.pdf
Does the agency in charge of immovable property registration agency formally commit to deliver a legally
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
Yes, online
0.5
India
Doing Business
2020
Page 46
Link for online access:
www.igrmaharashtra.
gov.in under the
heading Citizen's
Charter
http://www.igrmahara
shtra.gov.in/SB_CITI
ZENAREA/citizenAre
a_CC_pdf.aspx
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency
in charge of immovable property registration?
No
0.0
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property
registration agency?
Yes
0.5
Number of property transfers in the largest business city in 2018:
2249874.0
Who is able to consult maps of land plots in the largest business city?
Only intermediaries
and interested parties
0.0
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?
Yes, on public boards
0.5
Link for online access:
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and
if so, how does it communicate the service standard?
Yes, on public boards
0.5
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the
cadastral or mapping agency?
Yes
0.5
Contact information:
Geographic coverage index (0–8)
0.0
Are all privately held land plots in the largest business city formally registered at the immovable property
registry?
No
0.0
Are all privately held land plots in the economy formally registered at the immovable property registry?
No
0.0
Are all privately held land plots in the largest business city mapped?
No
0.0
Are all privately held land plots in the economy mapped?
No
0.0
Land dispute resolution index (0–8)
3.5
Does the law require that all property sale transactions be registered at the immovable property registry to make
them opposable to third parties?
Yes
1.5
Legal basis:
Section 17 of the
Indian Registration
Act, 1908
Is the system of immovable property registration subject to a state or private guarantee?
No
0.0
Type of guarantee:
Legal basis:
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
No
0.0
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g.,
checking the compliance of contracts with requirements of the law)?
Yes
0.5
If yes, who is responsible for checking the legality of the documents?
Lawyer;
Does the legal system require verification of the identity of the parties to a property transaction?
Yes
0.5
If yes, who is responsible for verifying the identity of the parties?
Registrar;
Is there a national database to verify the accuracy of government issued identity documents?
Yes
1.0
India
Doing Business
2020
Page 47
What is the Court of first instance in charge of a case involving a standard land dispute between two local
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located
in the largest business city?
City Civil Court
How long does it take on average to obtain a decision from the first-instance court for such a case (without
appeal)?
More than 3 years
0.0
Are there publicly available statistics on the number of land disputes at the economy level in the first instance
court?
No
0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)
0.0
Do unmarried men and unmarried women have equal ownership rights to property?
Yes
Do married men and married women have equal ownership rights to property?
Yes
0.0
India
Doing Business
2020
Page 48
Registering Property - Delhi
Figure – Registering Property in Delhi – Score
Procedures
33.3
Time
77.0
Cost
46.2
Quality of the land administration index
26.7
Figure – Registering Property in Delhi and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
81.0: China (Rank: 28)
60.2: Mexico (Rank: 105)
49.6: Mumbai
48.6: Pakistan (Rank: 151)
45.8: Delhi
29.0: Bangladesh (Rank: 184)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Procedures (number)
9
6.9
4.7
1 (5 Economies)
Time (days)
49
107.8
23.6
1 (2 Economies)
Cost (% of property value)
8.1
7.0
4.2
0.0 (Saudi Arabia)
Quality of the land administration index (0-30)
8.0
9.1
23.2
None in 2018/19
India
Doing Business
2020
Page 49
Figure – Registering Property in Delhi – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 * 3 * 4 5 * 6 * 7 8 9
0
10
20
30
40
Time (days)
0
1
2
3
4
5
6
7
Cost (% of property value)
Time (days) Cost (% of property value)
India
Doing Business
2020
Page 50
Figure – Registering Property in Delhi and comparator economies – Measure of Quality
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
5
10
15
20
25
30
Index score
8.0
6.5
24.0
16.3
9.8
14.0
9.1
Details – Registering Property in Delhi – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Conduct title search at the sub-registrar office
: Sub-Registrar Office
Agency
The purchaser should conduct a title search of the property in the Registry Office to ascertain that
(1) the legal ownership document is in the name of the owner, issued by the Revenue Record
Department (2) the title deeds, mutation entries for the preceding 30 years (preferably) to create a
chain of title to ensure that the property has no mortgages or other charges (3) the property is
transferable and heritable, (4) the transferor is competent and/or authorized to transfer the
property, (5) the transferee is qualified to be a transferee, (6) the consideration is lawful, (7) the
transfer has been made and completed in the manner prescribed by law.
The search may be done online free of cost. However, the land records of all the properties in
Delhi may not yet be available on the website (https://doris.delhigovt.nic.in/login.aspx) .Therefore,
title search may still have to be conducted offline at the Registrar's Office.
7 days
INR 3,000; (INR 100 for
each year searched.
Usually, 30 years are
searched as part of the
due diligence process.)
2
Ensure that property is clear of all local tax dues
: Municipal Corporation of Delhi (North, South or East - depending on the location of the
property)
Agency
Request all records regarding payment of local property taxes and any other possible municipal
dues, for pick-up a week later, to ensure that the owner of the property is in good standing with
municipal authorities
7 days
INR 200
3
Conduct charges search at the Registrar of Companies
: Registrar of Companies
Agency
If the seller is a Company incorporated under the provisions of the Companies Act, 2013, the
purchaser should conduct a search in the office of the Registrar of Companies to verify whether
there is any charge (mortgage, encumbrance, etc.) on the property registered under Section 125
of the Companies Act, 2013. Note that if the Seller is not able to produce title deed, then Buyer
must also check any potential creditors for mortgages by deposit of title deed, which are not
recorded anywhere.
Less than one day,
online
INR 100
4
Check for unpaid utility bills online
: Utility website
Agency
This is part of the due diligence process done by the lawyer. The seller will provide the payment
receipts and the lawyer will verify online if these bills were paid and that there are no outstanding
bills.
Less than one day,
online
no charge
5
Prepare the final sale deed with the purchaser’s lawyer
: Lawyer
Agency
The lawyer prepares the final sale deed and then engrosses the document on green paper leaving
the date and place blank. This document is then submitted for stamping. The fee for the lawyer
varies from transaction to transaction.
7 days
INR 69,686.44; (1% of the
property value)
India
Doing Business
2020
Page 51
6
Obtain a certificate for the Tax Deductible at Source
: Income Tax Department (Federal level)
Agency
On June 1, 2013, Section 194IA of the Income Tax became effective. This section establishes that
a Tax Deductible at Source (TDS) of 1% of the property value must be deducted at source from
the amount paid to the seller/transferor of Immovable Property. This provision is only applicable to
properties that have a value over INR 5,000,000.
Any sum deducted under section 194-IA must be paid to the credit of the Central Government
within a period of seven days from the end of the month in which the deduction is made and shall
be accompanied by a challan-cum-statement in Form No. 26QB. The sum so deducted must be
deposited to the credit of the Central Government by remitting it electronically to the Reserve
Bank of India or the State Bank of India or to any authorized bank.
Every person responsible for deduction of tax under section 194-IA must give the certificate of
deduction of tax at source in Form No. 16B to the payee within fifteen days from the due date for
furnishing the Challan-cum-statement in Form No. 26QB under Rule 31A after generating and
downloading the same from the web portal specified by the Director General of Income-tax
(System) or the person authorized by him.
After depositing the TDS to the sub-registrar, the buyer is required to give the TDS certificate to
the seller. This is available around 10-15 days after depositing the TDS. TDS can be paid and the
TDS certificate can also be obtained online.
7 days
no charge
7
Pay Stamp Duty on the final Sale Deed through e-stamp paper at the designated bank.
: Bank
Agency
The amount of stamp duty is calculated based on the sale consideration or circle rate, whichever
is higher, and deposited by the party purchasing the e-stamp paper, in the designated account of
the Stock Holding Corporation of India at Corporation Bank by RTGS/NEFT. Thereafter, the UTR
no. or other relevant details of the payment along with the details of the property, parties, nature of
instruments, Permanent Account Number (PAN) card details of parties, authority letter to the
representative of the party to collect the e-stamp paper and ID proof of the party in whose name
stamp duty has been purchased, are required to be submitted at the bank and thereafter, the
stamp paper is issued.
1 day
INR 418,118.62; (6% of
property value)
8
Execute final sale deed and submit documents to the local office of the Sub-Registrar of
Assurances
: Sub-Registrar of Assurances
Agency
Initially an appointment is taken online (http://srams.delhi.gov.in) for the execution of the deed. On
the date of the appointment, the documents are submitted to the designated official for screening.
The designated official verifies the particulars of the purchaser(s), seller(s) and witnesses and also
verifies the property details and title documents of the seller with respect to the property.
Thereafter, the photographs of the seller, purchaser and witnesses are taken which are also
printed on the back page of the registered sale deed. Further, the registration fees is paid in favor
of the office of the Sub-Registrar and receipt for the same is issued. Thereafter, the sale deed is
registered and a registration receipt is issued. The registered sale deed can be collected from the
office of Sub-Registrar after approximately 1 week from the date of registration, upon production
of the registration receipt.
The following documents are required to be submitted to the office of the Sub-Registrar for
registration of a sale deed:
(i) two photographs, each of the authorized representatives/directors of the seller and purchaser,
along with their ID proof, in original;
(ii) PAN cards of seller and purchaser;
(iii) the board resolutions in favor of the authorized representative or director executing the sale
deed on behalf of the companies;
(iii) In case the sale consideration is more than INR 50,00,000/-, proof of payment of 1% deduction
as TDS;
(iv) ID proof of the witnesses, in original; and
(v) previous title documents of the property.
The authorized representatives/directors of both parties as well as witnesses are required to be
present at the office of the Sub-Registrar, in person, for the registration of the sale deed.
3 days
INR 69,986.44; (1% of
market value of the
property
+ INR100 pasting charge
has to be deposited at
Sub-Registrar office at the
time of registration
+INR 20 per page of final
sale deed for scanning
charges)
India
Doing Business
2020
Page 52
Takes place simultaneously with previous procedure.
9
Apply for mutation of the property title for tax purposes
: Municipal Corporation of Delhi (MCD)
Agency
An application for mutation for tax purposes is done at the Municipal Corporation of Delhi (MCD)
to change the name of the owner on the property record at the municipality. The authorized
signatory submits the duly signed application along with the affidavit, indemnity bond and a
notarized copy of the registered Sale Deed. After the assessment of the request for mutation,
MCD assess the value of the property tax and a mutation Letter in the name of the new owner is
issued by the MCD.
The mutation of the property can be done online through the relevant website of the zonal
department of the Municipal Corporation of Delhi. However, the original documents are required to
be submitted by the applicant at the time of calling/ hearing by the concerned office of Assessor &
Collector at their Zonal Office for processing the e-change of name of taxpayer request.
The following documents have to be submitted.
1. Copy of valid instrument (s) of transfer - deed of such transfer must be duly stamped and
registered.
2. Transfer duty on such stamp duty must have been paid
3. Complete Chain of document
4. Application for Change of Name with Rs. 3/- Court fee stamp affixed on it.
5. Indemnity Bond on Rs. 100/- Stamp Paper duly attested by Notary.
6. Affidavit on Rs. 10/- Stamp Paper duly attested by Notary.
7. Affidavit regarding dues of property tax
30 days
INR 1,663; ((i) application
fee for the e-mutation has
been fixed at Rs. 1500 +
(ii) Application for Change
of Name with Rs. 3/- Court
fee stamp affixed on it ; (iii)
Indemnity Bond on Rs.
100/- Stamp Paper duly
attested by Notary; (iv)
Affidavit on Rs. 10/- Stamp
Paper duly attested by
Notary + Notary fees Rs.
50)
India
Doing Business
2020
Page 53
Details – Registering Property in Delhi – Measure of Quality
Answer
Score
Quality of the land administration index (0-30)
8.0
Reliability of infrastructure index (0-8)
2.0
Type of land registration system in the economy:
Deed Registration
System
What is the institution in charge of immovable property registration?
Office of the Sub-
Registrar
In what format are past and newly issued land records kept at the immovable property registry of the largest
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Computer/Scanned
1.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,
restrictions and the like)?
No
0.0
Institution in charge of the plans showing legal boundaries in the largest business city:
Delhi Development
Authority (DDA)
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Paper
0.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information
(geographic information system)?
No
0.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency
kept in a single database, in different but linked databases or in separate databases?
Separate databases
0.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification
number for properties?
Yes
1.0
Transparency of information index (0–6)
2.5
Who is able to obtain information on land ownership at the agency in charge of immovable property registration
in the largest business city?
Anyone who pays the
official fee
1.0
Is the list of documents that are required to complete any type of property transaction made publicly available–
and if so, how?
Yes, online
0.5
Link for online access:
http://www.delhi.gov.i
n/wps/wcm/connect/D
oIT_DCNORTH/dcno
rth/publicservicesslink
s/registration+of+doc
uments
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property
registration in the largest business city made publicly available–and if so, how?
Yes, online
0.5
Link for online access:
http://www.delhi.gov.i
n/wps/wcm/connect/d
oit_revenue/Revenue
/Home/Services/Prop
erty+Registration
Does the agency in charge of immovable property registration agency formally commit to deliver a legally
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
Yes, in person
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency
in charge of immovable property registration?
No
0.0
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property
registration agency?
Yes
0.5
Number of property transfers in the largest business city in 2018:
100162 for entire
Delhi
Who is able to consult maps of land plots in the largest business city?
Only intermediaries
and interested parties
0.0
India
Doing Business
2020
Page 54
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?
No
0.0
Link for online access:
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and
if so, how does it communicate the service standard?
No
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the
cadastral or mapping agency?
No
0.0
Contact information:
Geographic coverage index (0–8)
0.0
Are all privately held land plots in the largest business city formally registered at the immovable property
registry?
No
0.0
Are all privately held land plots in the economy formally registered at the immovable property registry?
No
0.0
Are all privately held land plots in the largest business city mapped?
No
0.0
Are all privately held land plots in the economy mapped?
No
0.0
Land dispute resolution index (0–8)
3.5
Does the law require that all property sale transactions be registered at the immovable property registry to make
them opposable to third parties?
Yes
1.5
Legal basis:
Section 17 of the
Indian Registration
Act, 1908
Is the system of immovable property registration subject to a state or private guarantee?
No
0.0
Type of guarantee:
Legal basis:
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
No
0.0
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g.,
checking the compliance of contracts with requirements of the law)?
Yes
0.5
If yes, who is responsible for checking the legality of the documents?
Lawyer;
Does the legal system require verification of the identity of the parties to a property transaction?
Yes
0.5
If yes, who is responsible for verifying the identity of the parties?
Registrar;
Is there a national database to verify the accuracy of government issued identity documents?
Yes
1.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located
in the largest business city?
Delhi District Court
How long does it take on average to obtain a decision from the first-instance court for such a case (without
appeal)?
More than 3 years
0.0
Are there publicly available statistics on the number of land disputes at the economy level in the first instance
court?
No
0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)
0.0
Do unmarried men and unmarried women have equal ownership rights to property?
Yes
Do married men and married women have equal ownership rights to property?
Yes
0.0
India
Doing Business
2020
Page 55
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Strength of legal rights index (0–12)
Rights of borrowers and lenders through collateral laws (0-10)
•
Protection of secured creditors’ rights through bankruptcy laws
(0-2)
•
Depth of credit information index (0–8)
Scope and accessibility of credit information distributed by
credit bureaus and credit registries (0-8)
•
Credit bureau coverage (% of adults)
Number of individuals and firms listed in largest credit bureau
as a percentage of adult population
•
Credit registry coverage (% of adults)
Number of individuals and firms listed in credit registry as a
percentage of adult population
•
Case study assumptions
assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
information index measures rules and practices affecting the coverage, scope and accessibility of
credit information available through a credit registry or a credit bureau. The strength of legal rights
index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
secured transactions system exists. Then two case scenarios, case A and case B, are used to
determine how a nonpossessory security interest is created, publicized and enforced according to
the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
secured lender, BizBank.
Doing Business
In some economies the legal framework for secured transactions will allow only case A or case B
(not both) to apply. Both cases examine the same set of legal provisions relating to the use of
movable collateral.
Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.
India
Doing Business
2020
Page 56
Getting Credit - Mumbai
Figure – Getting Credit in Mumbai – Score
Score - Getting Credit
80.0
Figure – Getting Credit in Mumbai and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
90.0: Mexico (Rank: 11)
80.0: Delhi
80.0: Mumbai
60.0: China (Rank: 80)
45.0: Bangladesh (Rank: 119)
45.0: Pakistan (Rank: 119)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Strength of legal rights index (0-12)
9
5.5
6.1
12 (5 Economies)
Depth of credit information index (0-8)
7
5.1
6.8
8 (53 Economies)
Credit registry coverage (% of adults)
0.0
5.1
24.4
100.0 (2 Economies)
Credit bureau coverage (% of adults)
63.1
21.0
66.7
100.0 (14 Economies)
India
Doing Business
2020
Page 57
Figure – Legal Rights in Mumbai and comparator economies
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
2
4
6
8
10
12
Index Score
9
5
4
10
2
9
5.5
India
Doing Business
2020
Page 58
Details – Legal Rights in Mumbai
Strength of legal rights index (0-12)
9
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents
to security interests in movable assets exist in the economy?
No
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description
of collateral?
Yes
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of
collateral?
Yes
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the
original assets?
Yes
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties;
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Yes
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an
electronic database indexed by debtor's name?
No
Does a notice-based collateral registry exist in which all functional equivalents can be registered?
No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third
party?
Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?
Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?
Yes
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Yes
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Yes
Figure – Credit Information in Mumbai and comparator economies
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
1
2
3
4
5
6
7
8
9
Index Score
7
4
8 8
7 7
5.1
India
Doing Business
2020
Page 59
Details – Credit Information in Mumbai
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Depth of credit information index (0-8)
Credit bureau
Credit registry
Score
Are data on both firms and individuals distributed?
Yes
No
1
Are both positive and negative credit data distributed?
Yes
No
1
Are data from retailers or utility companies - in addition to data from banks and
financial institutions - distributed?
No
No
0
Are at least 2 years of historical data distributed? (Credit bureaus and registries
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Yes
No
1
Are data on loan amounts below 1% of income per capita distributed?
Yes
No
1
By law, do borrowers have the right to access their data in the credit bureau or
credit registry?
Yes
No
1
Can banks and financial institutions access borrowers’ credit information online
(for example, through an online platform, a system-to-system connection or
both)?
Yes
No
1
Are bureau or registry credit scores offered as a value-added service to help
banks and financial institutions assess the creditworthiness of borrowers?
Yes
No
1
Coverage
Credit bureau
Credit registry
Number of individuals
543,636,959
0
Number of firms
23,028,263
0
Total
566,665,222
0
Percentage of adult population
63.1
0.0
India
Doing Business
2020
Page 60
Getting Credit - Delhi
Figure – Getting Credit in Delhi – Score
Score - Getting Credit
80.0
Figure – Getting Credit in Delhi and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
90.0: Mexico (Rank: 11)
80.0: Delhi
80.0: Mumbai
60.0: China (Rank: 80)
45.0: Bangladesh (Rank: 119)
45.0: Pakistan (Rank: 119)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Strength of legal rights index (0-12)
9
5.5
6.1
12 (5 Economies)
Depth of credit information index (0-8)
7
5.1
6.8
8 (53 Economies)
Credit registry coverage (% of adults)
0.0
5.1
24.4
100.0 (2 Economies)
Credit bureau coverage (% of adults)
63.1
21.0
66.7
100.0 (14 Economies)
India
Doing Business
2020
Page 61
Figure – Legal Rights in Delhi and comparator economies
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
2
4
6
8
10
12
Index Score
9
5
4
10
2
9
5.5
India
Doing Business
2020
Page 62
Details – Legal Rights in Delhi
Strength of legal rights index (0-12)
9
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents
to security interests in movable assets exist in the economy?
No
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description
of collateral?
Yes
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of
collateral?
Yes
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the
original assets?
Yes
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties;
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Yes
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an
electronic database indexed by debtor's name?
No
Does a notice-based collateral registry exist in which all functional equivalents can be registered?
No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third
party?
Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?
Yes
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?
Yes
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Yes
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Yes
Figure – Credit Information in Delhi and comparator economies
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
1
2
3
4
5
6
7
8
9
Index Score
7
4
8 8
7 7
5.1
India
Doing Business
2020
Page 63
Details – Credit Information in Delhi
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Depth of credit information index (0-8)
Credit bureau
Credit registry
Score
Are data on both firms and individuals distributed?
Yes
No
1
Are both positive and negative credit data distributed?
Yes
No
1
Are data from retailers or utility companies - in addition to data from banks and
financial institutions - distributed?
No
No
0
Are at least 2 years of historical data distributed? (Credit bureaus and registries
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Yes
No
1
Are data on loan amounts below 1% of income per capita distributed?
Yes
No
1
By law, do borrowers have the right to access their data in the credit bureau or
credit registry?
Yes
No
1
Can banks and financial institutions access borrowers’ credit information online
(for example, through an online platform, a system-to-system connection or
both)?
Yes
No
1
Are bureau or registry credit scores offered as a value-added service to help
banks and financial institutions assess the creditworthiness of borrowers?
Yes
No
1
Coverage
Credit bureau
Credit registry
Number of individuals
543,636,959
0
Number of firms
23,028,263
0
Total
566,665,222
0
Percentage of adult population
63.1
0.0
India
Doing Business
2020
Page 64
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019.
.
See the methodology for more information
What the indicators measure
: Disclosure, review, and
approval requirements for related-party transactions
•
Extent of disclosure index (0–10)
: Ability of minority
shareholders to sue and hold interested directors liable for
prejudicial related-party transactions; Available legal
remedies (damages, disgorgement of profits, disqualification
from managerial position(s) for one year or more, rescission of
the transaction)
•
Extent of director liability index (0–10)
: Access to internal
corporate documents; Evidence obtainable during trial and
allocation of legal expenses
•
Ease of shareholder suits index (0–10)
Sum of
the extent of disclosure, extent of director liability and ease of
shareholder suits indices
•
Extent of conflict of interest regulation index (0-30):
: Shareholders’ rights
and role in major corporate decisions
•
Extent of shareholder rights index (0-6)
: Governance
safeguards protecting shareholders from undue board control
and entrenchment
•
Extent of ownership and control index (0-7)
: Corporate
transparency on ownership stakes, compensation, audits and
financial prospects
•
Extent of corporate transparency index (0-7)
: Sum
of the
extent of shareholders rights, extent of ownership and control
and extent of corporate transparency indices
•
Extent of shareholder governance index (0–20)
: Sum
of the extent of conflict of interest regulation and extent of
shareholder governance indices
•
Strength of minority investor protection index (0–50)
Case study assumptions
To make the data comparable across economies, a case study uses several assumptions about
the business and the transaction.
- Is a publicly traded corporation listed on the economy’s most important stock exchange.
- Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
Buyer where permitted, even if this is not specifically required by law.
- Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
- Has not adopted bylaws or articles of association that go beyond the minimum requirements.
Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
The business (Buyer):
- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
Buyer’s five-member board.
- Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
- Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
Buyer’s assets and is higher than the market value.
- The proposed transaction is part of the company’s principal activity and is not outside the
authority of the company.
- Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
- The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
directors that approved the transaction.
The transaction involves the following details:
India
Doing Business
2020
Page 65
Protecting Minority Investors - Mumbai
Figure – Protecting Minority in Mumbai – Score
Score - Protecting Minority Investors
80.0
Figure – Protecting Minority Investors in Mumbai and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
80.0: Delhi
80.0: Mumbai
72.0: China (Rank: 28)
72.0: Pakistan (Rank: 28)
62.0: Mexico (Rank: 61)
60.0: Bangladesh (Rank: 72)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Stock exchange information
Stock exchange
Bombay Stock Exchange
Stock exchange URL
http://www.bseindia.com
Listed firms with equity securities
4909
City Covered
Mumbai
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Extent of disclosure index (0-10)
8.0
5.8
6.5
10 (13 Economies)
Extent of director liability index (0-10)
7.0
5.0
5.3
10 (3 Economies)
Ease of shareholder suits index (0-10)
7.0
7.4
7.3
10 (Djibouti)
Extent of shareholder rights index (0-6)
6.0
3.5
4.7
6 (19 Economies)
Extent of ownership and control index (0-7)
6.0
3.6
4.5
7 (9 Economies)
Extent of corporate transparency index (0-7)
6.0
3.3
5.7
7 (13 Economies)
India
Doing Business
2020
Page 66
Figure – Protecting Minority Investors in Mumbai and comparator economies – Measure of Quality
Mumbai
Bangladesh
China
Delhi
Mexico
Pakistan
OECD high income
South Asia
0 5 10 15 20 25 30 35 40 45
Sub-Indicator Score
6 7 8 6 6 7
3 7 6 3 4 7
6 4 10 6 5 5
6 7 8 6 6 7
3 5 8 5 5 5
5 7 6 7 5 6
5.6 5.6 6.6 4.3 4.5 7.4
3.9 5.9 6.1 4.4 4.1 7.1
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
India
Doing Business
2020
Page 67
Details – Protecting Minority Investors in Mumbai – Measure of Quality
Answer
Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10)
8.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)
Shareholders
excluding interested
parties
3.0
Must an external body review the terms of the transaction before it takes place? (0-1)
Yes
1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2)
Full disclosure of all
material facts
2.0
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)
Disclosure on the
transaction and on
the conflict of interest
2.0
Must Buyer immediately disclose the transaction to the public? (0-2)
No disclosure
obligation
0.0
Extent of director liability index (0-10)
7.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to
Buyer? (0-1)
Yes
1.0
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)
Not liable
0.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)
Liable if unfair or
prejudicial
2.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)
Yes
1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)
Yes
1.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1)
Yes
1.0
Can a court void the transaction upon a successful claim by shareholders? (0-2)
Voidable if negligently
concluded
1.0
Ease of shareholder suits index (0-10)
7.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents?
(0-1)
Yes
1.0
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)
Any relevant
document
3.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)
No
0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2)
Yes
2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1)
Yes
1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2)
At the discretion of
the court
0.0
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6)
6.0
Does the sale of 51% of Buyer's assets require shareholder approval?
Yes
1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?
Yes
1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares?
Yes
1.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares?
Yes
1.0
Do shareholders elect and dismiss the external auditor?
Yes
1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?
Yes
1.0
Extent of ownership and control index (0-7)
6.0
India
Doing Business
2020
Page 68
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?
No
0.0
Must the board of directors include independent and nonexecutive board members?
Yes
1.0
Can shareholders remove members of the board of directors without cause before the end of their term?
Yes
1.0
Must the board of directors include a separate audit committee exclusively comprising board members?
Yes
1.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?
Yes
1.0
Must Buyer pay declared dividends within a maximum period set by law?
Yes
1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company?
Yes
1.0
Extent of corporate transparency index (0-7)
6.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?
Yes
1.0
Must Buyer disclose information about board members’ primary employment and directorships in other
companies?
Yes
1.0
Must Buyer disclose the compensation of individual managers?
Yes
1.0
Must a detailed notice of general meeting be sent 21 days before the meeting?
Yes
1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?
No
0.0
Must Buyer's annual financial statements be audited by an external auditor?
Yes
1.0
Must Buyer disclose its audit reports to the public?
Yes
1.0
India
Doing Business
2020
Page 69
Protecting Minority Investors - Delhi
Figure – Protecting Minority in Delhi – Score
Score - Protecting Minority Investors
80.0
Figure – Protecting Minority Investors in Delhi and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
80.0: Delhi
80.0: Mumbai
72.0: China (Rank: 28)
72.0: Pakistan (Rank: 28)
62.0: Mexico (Rank: 61)
60.0: Bangladesh (Rank: 72)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Stock exchange information
Stock exchange
Bombay Stock Exchange
Stock exchange URL
http://www.bseindia.com
Listed firms with equity securities
4909
City Covered
Delhi
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Extent of disclosure index (0-10)
8.0
5.8
6.5
10 (13 Economies)
Extent of director liability index (0-10)
7.0
5.0
5.3
10 (3 Economies)
Ease of shareholder suits index (0-10)
7.0
7.4
7.3
10 (Djibouti)
Extent of shareholder rights index (0-6)
6.0
3.5
4.7
6 (19 Economies)
Extent of ownership and control index (0-7)
6.0
3.6
4.5
7 (9 Economies)
Extent of corporate transparency index (0-7)
6.0
3.3
5.7
7 (13 Economies)
India
Doing Business
2020
Page 70
Figure – Protecting Minority Investors in Delhi and comparator economies – Measure of Quality
Delhi
Bangladesh
China
Mexico
Mumbai
Pakistan
OECD high income
South Asia
0 5 10 15 20 25 30 35 40 45
Sub-Indicator Score
6 7 8 6 6 7
3 7 6 3 4 7
6 4 10 6 5 5
3 5 8 5 5 5
6 7 8 6 6 7
5 7 6 7 5 6
5.6 5.6 6.6 4.3 4.5 7.4
3.9 5.9 6.1 4.4 4.1 7.1
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
India
Doing Business
2020
Page 71
Details – Protecting Minority Investors in Delhi – Measure of Quality
Answer
Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10)
8.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)
Shareholders
excluding interested
parties
3.0
Must an external body review the terms of the transaction before it takes place? (0-1)
Yes
1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2)
Full disclosure of all
material facts
2.0
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)
Disclosure on the
transaction and on
the conflict of interest
2.0
Must Buyer immediately disclose the transaction to the public? (0-2)
No disclosure
obligation
0.0
Extent of director liability index (0-10)
7.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to
Buyer? (0-1)
Yes
1.0
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)
Not liable
0.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)
Liable if unfair or
prejudicial
2.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)
Yes
1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)
Yes
1.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1)
Yes
1.0
Can a court void the transaction upon a successful claim by shareholders? (0-2)
Voidable if negligently
concluded
1.0
Ease of shareholder suits index (0-10)
7.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents?
(0-1)
Yes
1.0
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)
Any relevant
document
3.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)
No
0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2)
Yes
2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1)
Yes
1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2)
At the discretion of
the court
0.0
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6)
6.0
Does the sale of 51% of Buyer's assets require shareholder approval?
Yes
1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?
Yes
1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares?
Yes
1.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares?
Yes
1.0
Do shareholders elect and dismiss the external auditor?
Yes
1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?
Yes
1.0
Extent of ownership and control index (0-7)
6.0
India
Doing Business
2020
Page 72
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?
No
0.0
Must the board of directors include independent and nonexecutive board members?
Yes
1.0
Can shareholders remove members of the board of directors without cause before the end of their term?
Yes
1.0
Must the board of directors include a separate audit committee exclusively comprising board members?
Yes
1.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?
Yes
1.0
Must Buyer pay declared dividends within a maximum period set by law?
Yes
1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company?
Yes
1.0
Extent of corporate transparency index (0-7)
6.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?
Yes
1.0
Must Buyer disclose information about board members’ primary employment and directorships in other
companies?
Yes
1.0
Must Buyer disclose the compensation of individual managers?
Yes
1.0
Must a detailed notice of general meeting be sent 21 days before the meeting?
Yes
1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?
No
0.0
Must Buyer's annual financial statements be audited by an external auditor?
Yes
1.0
Must Buyer disclose its audit reports to the public?
Yes
1.0
India
Doing Business
2020
Page 73
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018).
See
the
methodology
for
more
information
.
What the indicators measure
Tax payments for a manufacturing company in 2018 (number
per year adjusted for electronic and joint filing and payment)
Total number of taxes and contributions paid or withheld,
including consumption taxes (value added tax, sales tax or
goods and service tax)
•
Method and frequency of filing and payment
•
Time required to comply with 3 major taxes (hours per year)
Collecting information, computing tax payable
•
Preparing separate tax accounting books, if required
•
Completing tax return, filing with agencies
•
Arranging payment or withholding
•
Total tax and contribution rate (% of commercial profits)
Profit or corporate income tax
•
Social contributions, labor taxes paid by employer
•
Property and property transfer taxes
•
Dividend, capital gains, financial transactions taxes
•
Waste collection, vehicle, road and other taxes
•
Postfiling Index
Time to comply with VAT refund (hours)
•
Time to obtain VAT refund (weeks)
•
Time to comply with a corporate income tax correction (hours)
•
Time to complete a corporate income tax correction (weeks)
•
Case study assumptions
Using a case scenario,
records taxes and mandatory contributions a medium size
company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
filing and payments, time taken to comply with tax laws, time taken to comply with the
requirements of postfiling processes and time waiting.
Doing Business
To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
ceramic flowerpots and sells them at retail.
Taxes and mandatory contributions are measured
at all levels of government.
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
VAT in June 2018.
All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018).
The VAT refund process:
- An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
The corporate income tax audit process:
India
Doing Business
2020
Page 74
Paying Taxes - Mumbai
Figure – Paying Taxes in Mumbai – Score
Payments
85.0
Time
68.3
Total tax and contribution rate
65.8
Postfiling index
49.3
Figure – Paying Taxes in Mumbai and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
70.1: China (Rank: 105)
68.1: Delhi
67.1: Mumbai
65.8: Mexico (Rank: 120)
56.1: Bangladesh (Rank: 151)
52.9: Pakistan (Rank: 161)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Payments (number per year)
12
26.7
10.3
3 (2 Economies)
Time (hours per year)
254
273.5
158.8
49 (3 Economies)
Total tax and contribution rate (% of profit)
49.7
43.9
39.9
26.1 (33 Economies)
Postfiling index (0-100)
49.3
41.2
86.7
None in 2018/19
India
Doing Business
2020
Page 75
Figure – Paying Taxes in Mumbai and comparator economies – Measure of Quality
Mumbai Bangladesh China Mexico Pakistan Delhi South
Asia
0
10
20
30
40
50
60
Index score
49.3
44.4
50.0
40.5
10.5
49.3
41.2
India
Doing Business
2020
Page 76
Details – Paying Taxes in Mumbai
Tax or
mandatory
contribution
Payments
(number)
Notes on
Payments
Time (hours)
Statutory tax
rate
Tax base
Total tax and
contribution
rate (% of
profit)
Notes on TTCR
Corporate
income tax
1.0
online
25.0
25%
taxable profit
21.63
Social security
contributions
1.0
online
88.0
13% as of July 1,
2108
gross salaries
14.75
Dividend tax
1.0
20.555%
dividend
distributions
6.35
Employee's state
insurance
contribution
1.0
online
4.75%
gross salaries
5.36
Property tax
1.0
10%
assessed value
1.32
GST on
insurance
premium
0.0
online and jointly
18%
insurance
premium
0.20
Employer paid -
Profession Tax
Enrolment (PTE)
1.0
online
INR 2,500
fixed fee
0.05
Labor welfare
fund
2.0
36 RPN
fixed fee per
employee
0.05
Vehicle tax
(pollution tax)
1.0
INR 200
fixed fee per
vehicle
0.01
Health and
education cess
0.0
online and jointly
0.0
4% as of April 1,
2018
all federal taxes
including the
surcharge
0.00
included in other
taxes
Income
surcharge
0.0
jointly
7%/12%
on applicable
federal taxes
included in other
taxes
Inter-state GST
0.0
online and jointly
18%
value added
not included
Employee paid -
Profession Tax
Registration
(PTR)
1.0
online
For male
employees: Upto
Rs. 7,500/- Nil
Rs. 7,501/ to Rs.
10,000/- Rs. 175
per month Above
10,001/- Rs.
200/- per month
(except
February) & Rs.
300/- for the
month of
February. For
female
employees: Upto
Rs. 10,000/- Nil
Above 10,001/-
Rs. 200/- per
month (except
February) & Rs.
300/- for the
month of
February.
fixed fee per
employee
withheld
Employee paid -
Social security
contributions
0.0
online and jointly
12% + 1.75%
gross salaries
withheld
Central GST
1.0
online
141.0
18%
value added
India
Doing Business
2020
Page 77
Fuel tax
1.0
fuel consumption
small amount
State GST
0.0
online and jointly
18%
value added
not included
Tax on interest
0.0
withheld
10%
interest income
included in other
taxes
Totals
12
254
49.7
India
Doing Business
2020
Page 78
Details – Paying Taxes in Mumbai – Tax by Type
Taxes by type
Answer
Profit tax (% of profit)
21.6
Labor tax and contributions (% of profit)
20.2
Other taxes (% of profit)
7.9
India
Doing Business
2020
Page 79
Details – Paying Taxes in Mumbai – Measure of Quality
Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Notes:
Answer
Score
Postfiling index (0-100)
49.3
VAT refunds
Does VAT exist?
Yes
Does a VAT refund process exist per the case study?
No
Restrictions on VAT refund process
Cash refund is
restricted to exporters
and to inverted duty
structure in case of
goods
Percentage of cases exposed to a VAT audit (%)
Not applicable
Is there a mandatory carry forward period?
No
Time to comply with VAT refund (hours)
No VAT refund per
case study scenario
0.0
Time to obtain VAT refund (weeks)
No VAT refund per
case study scenario
0.0
Corporate income tax audits
Does corporate income tax exist?
Yes
Percentage of cases exposed to a corporate income tax audit (%)
0% - 24%
Time to comply with a corporate income tax correction (hours)
3.0
97.2
Time to complete a corporate income tax correction (weeks)
No tax audit per case
study scenario
100
India
Doing Business
2020
Page 80
Paying Taxes - Delhi
Figure – Paying Taxes in Delhi – Score
Payments
88.3
Time
68.9
Total tax and contribution rate
65.8
Postfiling index
49.3
Figure – Paying Taxes in Delhi and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
70.1: China (Rank: 105)
68.1: Delhi
67.1: Mumbai
65.8: Mexico (Rank: 120)
56.1: Bangladesh (Rank: 151)
52.9: Pakistan (Rank: 161)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Payments (number per year)
10
26.7
10.3
3 (2 Economies)
Time (hours per year)
250
273.5
158.8
49 (3 Economies)
Total tax and contribution rate (% of profit)
49.7
43.9
39.9
26.1 (33 Economies)
Postfiling index (0-100)
49.3
41.2
86.7
None in 2018/19
India
Doing Business
2020
Page 81
Figure – Paying Taxes in Delhi and comparator economies – Measure of Quality
Delhi Bangladesh China Mexico Pakistan Mumbai South
Asia
0
10
20
30
40
50
60
Index score
49.3
44.4
50.0
40.5
10.5
49.3
41.2
India
Doing Business
2020
Page 82
Details – Paying Taxes in Delhi
Tax or
mandatory
contribution
Payments
(number)
Notes on
Payments
Time (hours)
Statutory tax
rate
Tax base
Total tax and
contribution
rate (% of
profit)
Notes on TTCR
Corporate
income tax
1.0
online
25.0
25.0%
taxable profit
21.66
Social security
contributions
1.0
online
84.0
13% as of July 1,
2018
gross salaries
14.75
Dividend tax
1.0
20.555%
dividend
distributions
6.36
Employee's state
insurance
contribution
1.0
online
4.75%
gross salaries
5.36
Property tax
1.0
10%
assessed value
1.32
GST on
insurance
premium
0.0
online and jointly
18%
insurance
premium
0.20
Vehicle tax
(pollution tax)
1.0
INR 200
fixed fee per
vehicle
0.01
Central GST
1.0
online
141.0
18.0%
value added
0.00
Labor welfare
fund
2.0
2.25 RPN
fixed fee per
employee
0.00
Health and
education cess
0.0
online and jointly
4% as of April 1,
2018
all federal taxes
including the
surcharge
0.00
included in other
taxes
Income
surcharge
0.0
jointly
7%/12%
on applicable
federal taxes
included in other
taxes
Inter-state GST
0.0
online and jointly
18.0%
value added
not included
Fuel tax
1.0
fuel consumption
small amount
Employee paid -
Social security
contributions
0.0
jointly
12% + 1.75%
gross salaries
withheld
State GST
0.0
online and jointly
18.0%
value added
not included
Tax on interest
0.0
withheld
10%
interest income
included in other
taxes
Totals
10
250
49.7
India
Doing Business
2020
Page 83
Details – Paying Taxes in Delhi – Tax by Type
Taxes by type
Answer
Profit tax (% of profit)
21.7
Labor tax and contributions (% of profit)
20.1
Other taxes (% of profit)
7.9
India
Doing Business
2020
Page 84
Details – Paying Taxes in Delhi – Measure of Quality
Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Notes:
Answer
Score
Postfiling index (0-100)
49.3
VAT refunds
Does VAT exist?
Yes
Does a VAT refund process exist per the case study?
No
Restrictions on VAT refund process
Cash refund is
restricted to exporters
and to inverted duty
structure in case of
goods
Percentage of cases exposed to a VAT audit (%)
Not applicable
Is there a mandatory carry forward period?
No
Time to comply with VAT refund (hours)
No VAT refund per
case study scenario
0.0
Time to obtain VAT refund (weeks)
No VAT refund per
case study scenario
0.0
Corporate income tax audits
Does corporate income tax exist?
Yes
Percentage of cases exposed to a corporate income tax audit (%)
0% - 24%
Time to comply with a corporate income tax correction (hours)
3.0
97.2
Time to complete a corporate income tax correction (weeks)
No tax audit per case
study scenario
100
India
Doing Business
2020
Page 85
Trading across Borders
records
the
time
and
cost
associated
with
the
logistical
process
of
exporting
and
importing
goods.
measures
the
time
and
cost
(excluding
tariffs)
associated
with
three
sets
of
procedures—documentary
compliance,
border
compliance
and
domestic
transport—within
the
overall
process
of
exporting
or
importing
a
shipment
of
goods.
The
most
recent
round
of
data
collection
for
the
project
was
completed
in
May
2019.
.
Doing Business Doing Business
See
the
methodology
for
more
information
What the indicators measure
Documentary compliance
Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
origin economy
•
Obtaining, preparing and submitting documents required by
destination economy and any transit economies
•
Covers all documents required by law and in practice, including
electronic submissions of information
•
Border compliance
Customs clearance and inspections
•
Inspections by other agencies (if applied to more than 20% of
shipments)
•
Handling and inspections that take place at the economy’s port
or border
•
Domestic transport
Loading or unloading of the shipment at the warehouse or
port/border
•
Transport between warehouse and port/border
•
Traffic delays and road police checks while shipment is en
route
•
Case study assumptions
To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
Time:
Insurance cost and informal payments for which no receipt is issued are excluded from the
costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
Contributors are private sector experts in international trade logistics and are informed about
exchange rates.
Cost:
- For all 190 economies covered by
, it is assumed a shipment is in a warehouse in
the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
its natural import partner—the economy from which it imports the largest value (price times
quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
the largest purchaser of this product. Shipment value is assumed to be $50,000.
- The mode of transport is the one most widely used for the chosen export or import product and
the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.
Assumptions of the case study:
Doing Business
India
Doing Business
2020
Page 86
Trading across Borders - Mumbai
Figure – Trading across Borders in Mumbai – Score
Time
to
export:
Border
compliance
69.2
Cost
to
export:
Border
compliance
78.2
Time
to
export:
Documentary
compliance
89.9
Cost
to
export:
Documentary
compliance
87.5
Time
to
import:
Border
compliance
78.9
Cost
to
import:
Border
compliance
77.3
Time
to
import:
Documentary
compliance
91.2
Cost
to
import:
Documentary
compliance
85.7
Figure – Trading across Borders in Mumbai and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
86.5: China (Rank: 56)
82.7: Delhi
82.2: Mumbai
82.1: Mexico (Rank: 69)
68.8: Pakistan (Rank: 111)
31.8: Bangladesh (Rank: 176)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Time to export: Border compliance (hours)
50
53.4
12.7
1 (19 Economies)
Cost to export: Border compliance (USD)
231
310.6
136.8
0 (19 Economies)
Time to export: Documentary compliance (hours)
18
73.7
2.3
1 (26 Economies)
Cost to export: Documentary compliance (USD)
50
157.9
33.4
0 (20 Economies)
Time to import: Border compliance (hours)
60
85.7
8.5
1 (25 Economies)
Cost to import: Border compliance (USD)
273
472.9
98.1
0 (28 Economies)
Time to import: Documentary compliance (hours)
22
93.7
3.4
1 (30 Economies)
Cost to import: Documentary compliance (USD)
100
261.7
23.5
0 (30 Economies)
India
Doing Business
2020
Page 87
Figure – Trading across Borders in Mumbai – Time and Cost
Export
-
Border
Compliance
Export
-
Documentary
Compliance
Import
-
Border
Compliance
Import
-
Documentary
Compliance
0
10
20
30
40
50
60
70
Time (hours)
0
50
100
150
200
250
300
Cost (USD)
50
231
18
50
60
273
22
100
Time (hours) Cost (USD)
India
Doing Business
2020
Page 88
Details – Trading across Borders in Mumbai
Characteristics
Export
Import
Product
HS 85 : Electrical machinery and equipment and
parts thereof; sound recorders and reproducers,
television image and sound recorders and
reproducers, and parts and accessories of such
articles
HS 8708: Parts and accessories of motor vehicles
Trade partner
United States
Korea, Rep.
Border
Nhava Sheva port
Nhava Sheva port
Distance (km)
46
46
Domestic transport time (hours)
7
9
Domestic transport cost (USD)
158
165
Details – Trading across Borders in Mumbai – Components of Border Compliance
Time to Complete (hours)
Associated Costs (USD)
Export: Clearance and inspections required by
customs authorities
10.0
95.0
Export: Clearance and inspections required by
agencies other than customs
0.0
0.0
Export: Port or border handling
40.0
136.0
Import: Clearance and inspections required by
customs authorities
12.0
98.0
Import: Clearance and inspections required by
agencies other than customs
0.0
0.0
Import: Port or border handling
48.0
175.0
India
Doing Business
2020
Page 89
Details – Trading across Borders in Mumbai – Trade Documents
Export
Import
Bill of lading
Invoice
Commercial invoice
Packing List
Packing list
Import General Manifest
Customs export declaration
Bill of Entry
Terminal handling receipts
Certificate of Origin
SOLAS certificate
Bill of lading
Cargo Release Order
E-Delivery Order
Terminal handling receipts
SOLAS certificate
India
Doing Business
2020
Page 90
Trading across Borders - Delhi
Figure – Trading across Borders in Delhi – Score
Time
to
export:
Border
compliance
66.7
Cost
to
export:
Border
compliance
81.6
Time
to
export:
Documentary
compliance
97.0
Cost
to
export:
Documentary
compliance
83.8
Time
to
import:
Border
compliance
75.3
Cost
to
import:
Border
compliance
78.3
Time
to
import:
Documentary
compliance
92.9
Cost
to
import:
Documentary
compliance
85.7
Figure – Trading across Borders in Delhi and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
86.5: China (Rank: 56)
82.7: Delhi
82.2: Mumbai
82.1: Mexico (Rank: 69)
68.8: Pakistan (Rank: 111)
31.8: Bangladesh (Rank: 176)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Time to export: Border compliance (hours)
54
53.4
12.7
1 (19 Economies)
Cost to export: Border compliance (USD)
195
310.6
136.8
0 (19 Economies)
Time to export: Documentary compliance (hours)
6
73.7
2.3
1 (26 Economies)
Cost to export: Documentary compliance (USD)
65
157.9
33.4
0 (20 Economies)
Time to import: Border compliance (hours)
70
85.7
8.5
1 (25 Economies)
Cost to import: Border compliance (USD)
260
472.9
98.1
0 (28 Economies)
Time to import: Documentary compliance (hours)
18
93.7
3.4
1 (30 Economies)
Cost to import: Documentary compliance (USD)
100
261.7
23.5
0 (30 Economies)
India
Doing Business
2020
Page 91
Figure – Trading across Borders in Delhi – Time and Cost
Export
-
Border
Compliance
Export
-
Documentary
Compliance
Import
-
Border
Compliance
Import
-
Documentary
Compliance
0
10
20
30
40
50
60
70
80
Time (hours)
0
50
100
150
200
250
300
Cost (USD)
54
195
6
65
70
260
18
100
Time (hours) Cost (USD)
India
Doing Business
2020
Page 92
Details – Trading across Borders in Delhi
Characteristics
Export
Import
Product
HS 85 : Electrical machinery and equipment and
parts thereof; sound recorders and reproducers,
television image and sound recorders and
reproducers, and parts and accessories of such
articles
HS 8708: Parts and accessories of motor vehicles
Trade partner
United States
Korea, Rep.
Border
Mundra port
Mundra port
Distance (km)
1241
1241
Domestic transport time (hours)
46
97
Domestic transport cost (USD)
500
685
Details – Trading across Borders in Delhi – Components of Border Compliance
Time to Complete (hours)
Associated Costs (USD)
Export: Clearance and inspections required by
customs authorities
11.0
63.0
Export: Clearance and inspections required by
agencies other than customs
0.0
0.0
Export: Port or border handling
43.0
132.0
Import: Clearance and inspections required by
customs authorities
24.0
90.0
Import: Clearance and inspections required by
agencies other than customs
0.0
0.0
Import: Port or border handling
46.0
170.0
India
Doing Business
2020
Page 93
Details – Trading across Borders in Delhi – Trade Documents
Export
Import
Bill of lading
Invoice
Commercial invoice
Packing list
Packing list
Import general manifest
Customs export declaration
Bill of entry
Terminal handling Receipts
Certificate of origin
SOLAS certificate
Bill of lading
Cargo release order
E-Delivery Order
Terminal handling receipts
SOLAS certificate
India
Doing Business
2020
Page 94
Enforcing Contracts
.
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Time required to enforce a contract through the courts
(calendar days)
Time to file and serve the case
•
Time for trial and to obtain the judgment
•
Time to enforce the judgment
•
Cost required to enforce a contract through the courts (% of
claim value)
Average attorney fees
•
Court costs
•
Enforcement costs
•
Quality of judicial processes index (0-18)
Court structure and proceedings (-1-5)
•
Case management (0-6)
•
Court automation (0-4)
•
Alternative dispute resolution (0-3)
•
Case study assumptions
The dispute in the case study involves the breach of a sales contract between two domestic
businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
To make the data on the time and comparable across economies, several assumptions about the
case are used:
- The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
located in the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local currency of
USD 5,000, whichever is greater.
- The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
was not adequate.
- The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
India
Doing Business
2020
Page 95
Enforcing Contracts - Mumbai
Figure – Enforcing Contracts in Mumbai – Score
Time
0.0
Cost
65.2
Quality of judicial processes index
58.3
Figure – Enforcing Contracts in Mumbai and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
80.9: China (Rank: 5)
67.0: Mexico (Rank: 43)
43.5: Pakistan (Rank: 156)
41.2: Delhi
41.2: Mumbai
22.2: Bangladesh (Rank: 189)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.
Standardized Case
Claim value
INR 344,566
Court name
Bombay City Civil Court
City Covered
Mumbai
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Time (days)
1445
1,101.6
589.6
120 (Singapore)
Cost (% of claim value)
31.0
29.9
21.5
0.1 (Bhutan)
Quality of judicial processes index (0-18)
10.5
7.1
11.7
None in 2018/19
India
Doing Business
2020
Page 96
Figure – Enforcing Contracts in Mumbai – Time and Cost
Bangladesh China Delhi Mexico Mumbai OECD
high
income
Pakistan South
Asia
0
200
400
600
800
1000
1200
1400
1600
Time (days)
0
10
20
30
40
50
60
70
80
Cost (% of claim value)
1442
66.8
496
16.2
1445
31.0
341
33.0
1445
31.0
589.6
21.5
1071
20.5
1,101.6
29.9
Time (days) Cost (% of claim value)
India
Doing Business
2020
Page 97
Figure – Enforcing Contracts in Mumbai and comparator economies – Measure of Quality
Mumbai
Bangladesh
China
Delhi
Mexico
Pakistan
OECD high income
South Asia
0 2 4 6 8 10 12 14 16 18
Sub-Indicator Score
2.5 1.5 2 4.5
3 1 0.5 3
3 5.5 3 5
2.5 1.5 2 4.5
2.5 3.3 0.5 3.8
2 1.2 0.5 2
2.5 3.2 2.4 3.6
2.4 1.2 0.8 3.1
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Mumbai
Indicator
Time (days)
1445
Filing and service
45
Trial and judgment
1095
Enforcement of judgment
305
Cost (% of claim value)
31.0
Attorney fees
22
Court fees
8.5
Enforcement fees
0.5
Quality of judicial processes index (0-18)
10.5
Court structure and proceedings (-1-5)
4.5
Case management (0-6)
1.5
Court automation (0-4)
2.0
Alternative dispute resolution (0-3)
2.5
India
Doing Business
2020
Page 98
Details – Enforcing Contracts in Mumbai – Measure of Quality
Answer
Score
Quality of judicial processes index (0-18)
10.5
Court structure and proceedings (-1-5)
4.5
1. Is there a court or division of a court dedicated solely to hearing commercial cases?
Yes
1.5
2. Small claims court
1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?
Yes
2.b. If yes, is self-representation allowed?
Yes
3. Is pretrial attachment available?
Yes
1.0
4. Are new cases assigned randomly to judges?
Yes, but manual
0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's?
Yes
0.0
Case management (0-6)
1.5
1. Time standards
0.5
1.a. Are there laws setting overall time standards for key court events in a civil case?
Yes
1.b. If yes, are the time standards set for at least three court events?
Yes
1.c. Are these time standards respected in more than 50% of cases?
No
2. Adjournments
0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted?
Yes
2.b. Are adjournments limited to unforeseen and exceptional circumstances?
No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?
No
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii)
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
Yes
1.0
4. Is a pretrial conference among the case management techniques used before the competent court?
No
0.0
5. Are there any electronic case management tools in place within the competent court for use by judges?
No
0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?
No
0.0
Court automation (0-4)
2.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?
No
0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?
No
0.0
3. Can court fees be paid electronically within the competent court?
Yes
1.0
4. Publication of judgments
1.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public
through publication in official gazettes, in newspapers or on the internet or court website?
Yes
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
Yes
Alternative dispute resolution (0-3)
2.5
1. Arbitration
1.0
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all its aspects?
Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—
that cannot be submitted to arbitration?
Yes
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?
Yes
India
Doing Business
2020
Page 99
2. Mediation/Conciliation
1.5
2.a. Is voluntary mediation or conciliation available?
Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
Yes
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
Yes
India
Doing Business
2020
Page 100
Enforcing Contracts - Delhi
Figure – Enforcing Contracts in Delhi – Score
Time
0.0
Cost
65.2
Quality of judicial processes index
58.3
Figure – Enforcing Contracts in Delhi and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
80.9: China (Rank: 5)
67.0: Mexico (Rank: 43)
43.5: Pakistan (Rank: 156)
41.2: Delhi
41.2: Mumbai
22.2: Bangladesh (Rank: 189)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.
Standardized Case
Claim value
INR 344,566
Court name
Delhi District Court
City Covered
Delhi
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Time (days)
1445
1,101.6
589.6
120 (Singapore)
Cost (% of claim value)
31.0
29.9
21.5
0.1 (Bhutan)
Quality of judicial processes index (0-18)
10.5
7.1
11.7
None in 2018/19
India
Doing Business
2020
Page 101
Figure – Enforcing Contracts in Delhi – Time and Cost
Bangladesh China Delhi Mexico Mumbai OECD
high
income
Pakistan South
Asia
0
200
400
600
800
1000
1200
1400
1600
Time (days)
0
10
20
30
40
50
60
70
80
Cost (% of claim value)
1442
66.8
496
16.2
1445
31.0
341
33.0
1445
31.0
589.6
21.5
1071
20.5
1,101.6
29.9
Time (days) Cost (% of claim value)
India
Doing Business
2020
Page 102
Figure – Enforcing Contracts in Delhi and comparator economies – Measure of Quality
Delhi
Bangladesh
China
Mexico
Mumbai
Pakistan
OECD high income
South Asia
0 2 4 6 8 10 12 14 16 18
Sub-Indicator Score
2.5 1.5 2 4.5
3 1 0.5 3
3 5.5 3 5
2.5 3.3 0.5 3.8
2.5 1.5 2 4.5
2 1.2 0.5 2
2.5 3.2 2.4 3.6
2.4 1.2 0.8 3.1
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Delhi
Indicator
Time (days)
1445
Filing and service
45
Trial and judgment
1095
Enforcement of judgment
305
Cost (% of claim value)
31.0
Attorney fees
22
Court fees
8.5
Enforcement fees
0.5
Quality of judicial processes index (0-18)
10.5
Court structure and proceedings (-1-5)
4.5
Case management (0-6)
1.5
Court automation (0-4)
2.0
Alternative dispute resolution (0-3)
2.5
India
Doing Business
2020
Page 103
Details – Enforcing Contracts in Delhi – Measure of Quality
Answer
Score
Quality of judicial processes index (0-18)
10.5
Court structure and proceedings (-1-5)
4.5
1. Is there a court or division of a court dedicated solely to hearing commercial cases?
Yes
1.5
2. Small claims court
1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?
Yes
2.b. If yes, is self-representation allowed?
Yes
3. Is pretrial attachment available?
Yes
1.0
4. Are new cases assigned randomly to judges?
Yes, but manual
0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's?
Yes
0.0
Case management (0-6)
1.5
1. Time standards
0.5
1.a. Are there laws setting overall time standards for key court events in a civil case?
Yes
1.b. If yes, are the time standards set for at least three court events?
Yes
1.c. Are these time standards respected in more than 50% of cases?
No
2. Adjournments
0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted?
Yes
2.b. Are adjournments limited to unforeseen and exceptional circumstances?
No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?
No
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii)
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
Yes
1.0
4. Is a pretrial conference among the case management techniques used before the competent court?
No
0.0
5. Are there any electronic case management tools in place within the competent court for use by judges?
No
0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?
No
0.0
Court automation (0-4)
2.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?
No
0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?
No
0.0
3. Can court fees be paid electronically within the competent court?
Yes
1.0
4. Publication of judgments
1.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public
through publication in official gazettes, in newspapers or on the internet or court website?
Yes
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
Yes
Alternative dispute resolution (0-3)
2.5
1. Arbitration
1.0
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all its aspects?
Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—
that cannot be submitted to arbitration?
Yes
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?
Yes
India
Doing Business
2020
Page 104
2. Mediation/Conciliation
1.5
2.a. Is voluntary mediation or conciliation available?
Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
Yes
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
Yes
India
Doing Business
2020
Page 105
Resolving Insolvency
studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors,
uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019.
.
Doing Business
Doing Business
See the methodology for more
information
What the indicators measure
Time required to recover debt (years)
Measured in calendar years
•
Appeals and requests for extension are included
•
Cost required to recover debt (% of debtor’s estate)
Measured as percentage of estate value
•
Court fees
•
Fees of insolvency administrators
•
Lawyers’ fees
•
Assessors’ and auctioneers’ fees
•
Other related fees
•
Outcome
Whether business continues operating as a going concern or
business assets are sold piecemeal
•
Recovery rate for creditors
Measures the cents on the dollar recovered by secured
creditors
•
Outcome for the business (survival or not) determines the
maximum value that can be recovered
•
Official costs of the insolvency proceedings are deducted
•
Depreciation of furniture is taken into account
•
Present value of debt recovered
•
Strength of insolvency framework index (0- 16)
Sum of the scores of four component indices:
•
Commencement of proceedings index (0-3)
•
Management of debtor’s assets index (0-6)
•
Reorganization proceedings index (0-3)
•
Creditor participation index (0-4)
•
Case study assumptions
To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
- A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
- The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
The hotel cannot pay back the loan, but makes enough money to operate otherwise.
In addition,
evaluates the quality of legal framework applicable to judicial
liquidation and reorganization proceedings and the extent to which best insolvency practices have
been implemented in each economy covered.
Doing Business
India
Doing Business
2020
Page 106
Resolving Insolvency - Mumbai
Figure – Resolving Insolvency in Mumbai – Score
Recovery rate
77.0
Strength of insolvency framework index
46.9
Figure – Resolving Insolvency in Mumbai and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
70.3: Mexico (Rank: 33)
62.1: China (Rank: 51)
62.0: Delhi
62.0: Mumbai
59.0: Pakistan (Rank: 58)
28.1: Bangladesh (Rank: 154)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Indicator
Mumbai
South Asia
OECD high
income
Best Regulatory
Performance
Recovery rate (cents on the dollar)
71.6
38.1
70.2
92.9 (Norway)
Time (years)
1.6
2.2
1.7
0.4 (Ireland)
Cost (% of estate)
9.0
9.9
9.3
1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern)
1
..
..
..
Strength of insolvency framework index (0-16)
7.5
6.5
11.9
None in 2018/19
India
Doing Business
2020
Page 107
Figure – Resolving Insolvency in Mumbai – Time and Cost
Bangladesh China Delhi Mexico Mumbai OECD
high
income
Pakistan South
Asia
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Time (years)
0
5
10
15
20
25
Cost (% of estate)
4.0
8.0
1.7
22.0
1.6
9.0
1.8
18.0
1.6
9.0
1.7
9.3
2.6
4.0
2.2
9.9
Time (years) Cost (% of estate)
India
Doing Business
2020
Page 108
Figure – Resolving Insolvency in Mumbai and comparator economies – Measure of Quality
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Mumbai
Bangladesh
China
Delhi
Mexico
Pakistan
OECD high income
South Asia
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
4.5 2 1 0
2 2 00
6 3 2 2.5
4.5 2 1 0
5.5 2.5 2 1.5
5.5 2.5 2 1.5
5.3 2.8 2.1 1.9
3.6 2.1 0.9 0.6
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Figure – Resolving Insolvency in Mumbai and comparator economies – Recovery Rate
Mumbai Bangladesh China Mexico Pakistan Delhi South Asia
0
10
20
30
40
50
60
70
80
Recovery rate(cents on the dollar)
71.6
29.1
36.9
63.9
42.8
71.6
38.1
India
Doing Business
2020
Page 109
Details – Resolving Insolvency in Mumbai
Indicator
Answer
Score
Proceeding
reorganization
Bizbank is a secured creditor and upon a default by Mirage, it is most likely to seek reorganization and the continuation
of Mirage as a going concern. Bizbank would file a petition to the National Company Law Tribunal. With the
implementation of the Insolvency and Bankruptcy Code, a reorganization is the most likely procedure in practice.
Outcome
going concern
BizBank would initiate reorganization process and thus the most likely outcome would be going concern.
Time (in years)
1.6
Bizbank will apply to the National Company Law Tribunal to file for reorganization. This will take a couple of months.
The reorganization procedure until the reorganization plan is approved it takes about 1.8 years.
Cost (% of estate)
9.0
The costs associated with the case would amount to approximately 9% of the value of the debtor's estate. Costs
incurred during the entire foreclosure process mainly include court or government agency fees (INR 300,000,
according to Mumbai Court fees Act, 1959), attorney fees (INR 100,000), costs of notification and publication (INR
25,000), fees of accountants, assessors, inspectors and other professionals (INR 100,000), fees of auctioneers (INR
50,000), fees of service providers and/or government levies (INR 100,000-200,000), and other fees (INR 100,000).
Recovery rate
(cents on the dollar)
71.6
India
Doing Business
2020
Page 110
Details – Resolving Insolvency in Mumbai – Measure of Quality
Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Note:
Answer
Score
Strength of insolvency framework index (0-16)
7.5
Commencement of proceedings index (0-3)
2.0
What procedures are available to a DEBTOR when commencing insolvency proceedings?
(c) Debtor may file for
reorganization only
0.5
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?
N/A
0.5
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a)
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value
of its assets
(a) Debtor is
generally unable to
pay its debts as they
mature
1.0
Management of debtor's assets index (0-6)
4.5
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the
debtor?
No
0.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?
Yes
1.0
Does the insolvency framework allow avoidance of preferential transactions?
Yes
1.0
Does the insolvency framework allow avoidance of undervalued transactions?
Yes
1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of
insolvency proceedings?
Yes
1.0
Does the insolvency framework assign priority to post-commencement credit?
(a) Yes over all pre-
commencement
creditors, secured or
unsecured
0.5
Reorganization proceedings index (0-3)
0.0
Which creditors vote on the proposed reorganization plan?
(c) Other
0.0
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as
what they would obtain in a liquidation?
No
0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote
separately and are creditors in the same class treated equally?
No
0.0
Creditor participation index (0-4)
1.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency
representative?
No
0.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?
No
0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency
representative?
Yes
1.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting
creditors' claims?
No
0.0
India
Doing Business
2020
Page 111
Resolving Insolvency - Delhi
Figure – Resolving Insolvency in Delhi – Score
Recovery rate
77.0
Strength of insolvency framework index
46.9
Figure – Resolving Insolvency in Delhi and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
70.3: Mexico (Rank: 33)
62.1: China (Rank: 51)
62.0: Delhi
62.0: Mumbai
59.0: Pakistan (Rank: 58)
28.1: Bangladesh (Rank: 154)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Indicator
Delhi
South Asia
OECD high
income
Best Regulatory
Performance
Recovery rate (cents on the dollar)
71.6
38.1
70.2
92.9 (Norway)
Time (years)
1.6
2.2
1.7
0.4 (Ireland)
Cost (% of estate)
9.0
9.9
9.3
1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern)
1
..
..
..
Strength of insolvency framework index (0-16)
7.5
6.5
11.9
None in 2018/19
India
Doing Business
2020
Page 112
Figure – Resolving Insolvency in Delhi – Time and Cost
Bangladesh China Delhi Mexico Mumbai OECD
high
income
Pakistan South
Asia
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
Time (years)
0
5
10
15
20
25
Cost (% of estate)
4.0
8.0
1.7
22.0
1.6
9.0
1.8
18.0
1.6
9.0
1.7
9.3
2.6
4.0
2.2
9.9
Time (years) Cost (% of estate)
India
Doing Business
2020
Page 113
Figure – Resolving Insolvency in Delhi and comparator economies – Measure of Quality
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Delhi
Bangladesh
China
Mexico
Mumbai
Pakistan
OECD high income
South Asia
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
4.5 2 1 0
2 2 00
6 3 2 2.5
5.5 2.5 2 1.5
4.5 2 1 0
5.5 2.5 2 1.5
5.3 2.8 2.1 1.9
3.6 2.1 0.9 0.6
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Figure – Resolving Insolvency in Delhi and comparator economies – Recovery Rate
Delhi Bangladesh China Mexico Pakistan Mumbai South Asia
0
10
20
30
40
50
60
70
80
Recovery rate(cents on the dollar)
71.6
29.1
36.9
63.9
42.8
71.6
38.1
India
Doing Business
2020
Page 114
Details – Resolving Insolvency in Delhi
Indicator
Answer
Score
Proceeding
reorganization
Bizbank is a secured creditor and upon a default by Mirage, it is most likely to seek reorganization and the continuation
of Mirage as a going concern. Bizbank would file a petition to the National Company Law Tribunal. With the
implementation of the Insolvency and Bankruptcy Code, a reorganization is the most likely procedure in practice.
Outcome
going concern
BizBank would initiate reorganization process and thus the most likely outcome would be going concern.
Time (in years)
1.6
Bizbank will apply to the National Company Law Tribunal to file for reorganization. This will take a couple of months.
The reorganization procedure until the reorganization plan is approved it takes about 1.8 years.
Cost (% of estate)
9.0
The costs associated with the case would amount to approximately 9% of the value of the debtor's estate. Costs
incurred during the entire insolvency process mainly include court or government agency fees (INR 300,000), attorney
fees (INR 100,000), costs of notification and publication (INR 25,000), fees of accountants, assessors, inspectors and
other professionals (INR 100,000), fees of auctioneers (INR 50,000), fees of service providers and/or government
levies (INR 100,000-200,000), and other fees (INR 100,000).
Recovery rate
(cents on the dollar)
71.6
India
Doing Business
2020
Page 115
Details – Resolving Insolvency in Delhi – Measure of Quality
Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Note:
Answer
Score
Strength of insolvency framework index (0-16)
7.5
Commencement of proceedings index (0-3)
2.0
What procedures are available to a DEBTOR when commencing insolvency proceedings?
(c) Debtor may file for
reorganization only
0.5
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?
N/A
0.5
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a)
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value
of its assets
(a) Debtor is
generally unable to
pay its debts as they
mature
1.0
Management of debtor's assets index (0-6)
4.5
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the
debtor?
No
0.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?
Yes
1.0
Does the insolvency framework allow avoidance of preferential transactions?
Yes
1.0
Does the insolvency framework allow avoidance of undervalued transactions?
Yes
1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of
insolvency proceedings?
Yes
1.0
Does the insolvency framework assign priority to post-commencement credit?
(a) Yes over all pre-
commencement
creditors, secured or
unsecured
0.5
Reorganization proceedings index (0-3)
0.0
Which creditors vote on the proposed reorganization plan?
(c) Other
0.0
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as
what they would obtain in a liquidation?
No
0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote
separately and are creditors in the same class treated equally?
No
0.0
Creditor participation index (0-4)
1.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency
representative?
No
0.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?
No
0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency
representative?
Yes
1.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting
creditors' claims?
No
0.0
India
Doing Business
2020
Page 116
Employing Workers
presents detailed data for the employing workers indicators on the
website (
). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
Doing Business Doing Business
http://www.doingbusiness.org
The most recent round of data collection was completed in May 2019.
.
See the methodology for more information
What the indicators measure
(i) whether fixed-term contracts are prohibited for permanent
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum
wage;(v) ratio of minimum wage to the average value added per
worker.
Hiring
(i) maximum number of working days allowed per week; (ii)
premiums for work: at night, on a weekly rest day and overtime;
(iii) whether there are restrictions on work at night, work on a
weekly rest day and for overtime work; (iv) length of paid annual
leave.
Working hours
(i) whether redundancy can be basis for terminating workers; (ii)
whether employer needs to notify and/or get approval from third
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy rules
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
Redundancy cost
Case study assumptions
To make the data comparable across economies, several assumptions about the worker and the
business are used.
- Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
- Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
The worker:
- Is a limited liability company (or the equivalent in the economy).
- Operates a supermarket or grocery store in the economy’s largest business city. For 11
economies the data are also collected for the second largest business city.
- Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
food retail sector and they apply even to firms that are not party to them.
- Abides by every law and regulation but does not grant workers more benefits than those
mandated by law, regulation or (if applicable) collective bargaining agreements.
The business:
India
Doing Business
2020
Page 117
Employing Workers - Mumbai
Details – Employing Workers in Mumbai
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks?
No
Maximum length of a single fixed-term contract (months)
No limit
Maximum length of fixed-term contracts, including renewals (months)
No limit
Minimum wage applicable to the worker assumed in the case study (US$/month)
143.5
Ratio of minimum wage to value added per worker
0.6
Maximum length of probationary period (months)
3.0
Working hours
Standard workday
9.0
Maximum number of working days per week
6.0
Premium for night work (% of hourly pay)
0.0
Premium for work on weekly rest day (% of hourly pay)
100.0
Premium for overtime work (% of hourly pay)
100.0
Restrictions on night work?
Yes
Restrictions on weekly holiday?
No
Restrictions on overtime work?
Yes
Paid annual leave for a worker with 1 year of tenure (working days)
18.0
Paid annual leave for a worker with 5 years of tenure (working days)
18.0
Paid annual leave for a worker with 10 years of tenure (working days)
18.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days)
18.0
Redundancy rules
Dismissal due to redundancy allowed by law?
Yes
Third-party notification if one worker is dismissed?
Yes
Third-party approval if one worker is dismissed?
No
Third-party notification if nine workers are dismissed?
Yes
Third-party approval if nine workers are dismissed?
No
Retraining or reassignment obligation before redundancy?
No
Priority rules for redundancies?
Yes
Priority rules for reemployment?
Yes
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
2.1
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
10.7
India
Doing Business
2020
Page 118
Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
21.4
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
11.4
Unemployment protection after one year of employment?
No
India
Doing Business
2020
Page 119
Employing Workers - Delhi
Details – Employing Workers in Delhi
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks?
No
Maximum length of a single fixed-term contract (months)
No limit
Maximum length of fixed-term contracts, including renewals (months)
No limit
Minimum wage applicable to the worker assumed in the case study (US$/month)
245.8
Ratio of minimum wage to value added per worker
1.0
Maximum length of probationary period (months)
3.0
Working hours
Standard workday
9.0
Maximum number of working days per week
6.0
Premium for night work (% of hourly pay)
0.0
Premium for work on weekly rest day (% of hourly pay)
0.0
Premium for overtime work (% of hourly pay)
100.0
Restrictions on night work?
Yes
Restrictions on weekly holiday?
Yes
Restrictions on overtime work?
Yes
Paid annual leave for a worker with 1 year of tenure (working days)
15.0
Paid annual leave for a worker with 5 years of tenure (working days)
15.0
Paid annual leave for a worker with 10 years of tenure (working days)
15.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days)
15.0
Redundancy rules
Dismissal due to redundancy allowed by law?
Yes
Third-party notification if one worker is dismissed?
Yes
Third-party approval if one worker is dismissed?
No
Third-party notification if nine workers are dismissed?
Yes
Third-party approval if nine workers are dismissed?
No
Retraining or reassignment obligation before redundancy?
No
Priority rules for redundancies?
Yes
Priority rules for reemployment?
Yes
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
2.1
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
10.7
India
Doing Business
2020
Page 120
Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
21.4
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
11.4
Unemployment protection after one year of employment?
No
India
Doing Business
2020
Page 121
Business Reforms in
India
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
have been implemented by economies in all regions. The following are reforms implemented since
2008.
Doing Business Doing Business
DB2020
Starting a Business:
India made starting a business easier by abolishing filing fees for the SPICe company incorporation form, electronic memorandum of association
and articles of association. This reform applies to both Delhi and Mumbai.
Dealing with Construction Permits:
India (Delhi) streamlined the process, reduced the time and cost of obtaining construction permits and improved building quality
control by strengthening professional certification requirements. India (Mumbai) streamlined the process of obtaining a building permit and made it faster and less
expensive to get a construction permit.
Trading across Borders:
India made trading across borders easier by enabling post-clearance audits, integrating trade stakeholders in a single electronic platform,
upgrading port infrastructures and enhancing the electronic submission of documents. This reform applies to both Mumbai and New Delhi.
Resolving Insolvency:
India made resolving insolvency easier by promoting reorganization proceedings in practice. India also made resolving insolvency more difficult by
not allowing dissenting creditors to receive as much under reorganization as they would receive in liquidation. This reform applies to both Delhi and Mumbai.
DB2019
Starting a Business:
India made starting a business easier by fully integrating multiple application forms into a general incorporation form. India also replaced the
value added tax with the GST (Goods and Services Tax) for which the registration process is faster. At the same time, Mumbai abolished the practice of site inspections for
registering companies under the Shops and Establishments Act.
Dealing with Construction Permits:
India streamlined the process of obtaining a building permit and made it faster and less expensive to obtain a construction permit.
It also improved building quality control by introducing decennial liability and insurance. This reform applies to both Delhi and Mumbai.
Getting Electricity:
The Delhi Electricity Regulatory Commission reduced charges for low voltage connections. Getting electricity was also made easier in Delhi through
a reduction in the time for the utility to carry out the external connection works.
Registering Property:
Getting Credit:
India strengthened access to credit by amending its insolvency law. Secured creditors are now given absolute priority over other claims within
insolvency proceedings.This reform affects both Delhi and Mumbai.
Paying Taxes:
India made paying taxes easier by replacing many indirect taxes with a single indirect tax, the GST, for the entire country. India also made paying taxes
less costly by reducing the corporate income tax rate and the employees’ provident funds scheme rate paid by the employer. This reform applies to both Delhi and Mumbai.
Trading across Borders:
India reduced the time and cost to export and import through various initiatives, including the implementation of electronic sealing of
containers, the upgrading of port infrastructure and allowing electronic submission of supporting documents with digital signatures. This reform applies to both Delhi and
Mumbai.
Employing Workers:
India (Mumbai) changed regulations pertaining to weekly holiday work, overtime hours and paid annual leave.
=
reform making it easier to do business.
= Change making it more difficult to do business.
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DB2018
Starting a Business:
India made starting a business faster by merging the applications for the Permanent Account Number (PAN) and the Tax Account Number (TAN),
and by improving the online application system. This reform applies to both Delhi and Mumbai. Mumbai also made starting a business faster by merging the applications
for the value-added tax and the profession tax.
Dealing with Construction Permits:
India made dealing with construction permits less cumbersome by implementing an online system that has streamlined the
process at the Municipality of New Delhi and Municipality of Greater Mumbai. The online system has streamlined the process of obtaining a building permit, thereby
reducing the number of procedures and time required to obtain a building permit in India.
Getting Credit:
India strengthened access to credit by amending the rules on priority of secured creditors outside reorganization proceedings and by adopting a new
law on insolvency that provides a time limit and clear grounds for relief to the automatic stay for secured creditors during reorganization proceedings. This reform applies
to both Delhi and Mumbai.
Protecting Minority Investors:
India strengthened minority investor protections by increasing the remedies available in cases of prejudicial transactions between
interested parties. This reform applies to both Delhi and Mumbai.
Paying Taxes:
India made paying taxes easier by making payment of EPF mandatory electronically and introducing a set of administrative measures easing compliance
with corporate income tax. This reform applies to both Delhi and Mumbai.
Trading across Borders:
India reduced import border compliance time in Mumbai by improving infrastructure at the Nhava Sheva Port. Export and import border
compliance cost were also reduced in both Delhi and Mumbai by eliminating merchant overtime fees and through the increased use of electronic and mobile platforms.
Enforcing Contracts:
India made enforcing contracts easier by introducing the National Judicial Data Grid, which makes it possible to generate case measurement
reports on local courts. This reform applies to both Delhi and Mumbai.
Resolving Insolvency:
India made resolving insolvency easier by adopting a new insolvency and bankruptcy code that introduced a reorganization procedure for
corporate debtors and facilitated continuation of the debtor’s business during insolvency proceedings. This reform applies to both Delhi and Mumbai.
Employing Workers:
India increased the mandatory length of paid maternity. This reform applies to both New Delhi and Mumbai.
DB2017
Getting Electricity:
India made getting electricity faster and cheaper by streamlining the process of getting a new commercial electricity connection. This reform
impacts Delhi.
Paying Taxes:
India made paying taxes easier by introducing an electronic system for paying employee state insurance contributions. This reform applies to both
Mumbai and Delhi.
Trading across Borders:
India made exporting and importing easier by launching Customs Electronic Commerce Interchange Gateway portal and simplifying border
and documentary compliance procedures. This reform applies to both New Delhi and Mumbai.
Enforcing Contracts:
India made enforcing contracts easier by creating dedicated divisions to resolve commercial cases. This reform applies to both Mumbai and Delhi.
DB2016
Starting a Business:
India made starting a business easier by eliminating the minimum capital requirement and the need to obtain a certificate to commence business
operations. This reform applies to both Delhi and Mumbai.
Getting Electricity:
The utility in Delhi made the process for getting an electricity connection simpler and faster by eliminating the internal wiring inspection by the
Electrical Inspectorate. The utility in Mumbai reduced the procedures and time required to connect to electricity by improving internal work processes and coordination.
DB2015
Starting a Business:
India made starting a business easier by considerably reducing the registration fees, but also made it more difficult by introducing a requirement
to file a declaration before the commencement of business operations. These changes apply to both Delhi and Mumbai.
Getting Electricity:
In India the utility in Mumbai made getting electricity less costly by reducing the security deposit for a new connection.
Protecting Minority Investors:
India strengthened minority investor protections by requiring greater disclosure of conflicts of interest by board members, increasing
the remedies available in case of prejudicial related-party transactions and introducing additional safeguards for shareholders of privately held companies. This reform
applies to both Delhi and Mumbai.
DB2013
Dealing with Construction Permits:
India reduced the time required to obtain a building permit by establishing strict time limits for preconstruction approvals.
DB2012
Paying Taxes:
India eased the administrative burden of paying taxes for firms by introducing mandatory electronic filing and payment for value added tax.
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DB2011
Starting a Business:
India eased business start-up by establishing an online VAT registration system and replacing the physical stamp previously required with an
online version.
Paying Taxes:
India reduced the administrative burden of paying taxes by abolishing the fringe benefit tax and improving electronic payment.
DB2010
Resolving Insolvency:
India made resolving insolvency easier by increasing the effectiveness of processes and thereby reducing the time required.
DB2009
Trading across Borders:
India reduced the time for exporting by implementing an electronic data interchange system.
DB2008
Getting Credit:
India strengthened its secured transactions system by launching a unified and geographically centralized collateral registry and started to provide
credit information on firms at the private credit bureau.
Trading across Borders:
India made trading across borders easier by introducing ICEGATE—an electronic data interchange system making it possible to lodge customs
declarations through the internet and facilitating the operation of a risk management system, an electronic payment system and an electronic manifest system that
allows shipping lines to submit their cargo manifest in advance.
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