There were a significant number of challenges when it came to the Government, creating a system to assist the general population with registrations for various schemes. India has a large population, and there are a lot of people living within the country who are not sure about the requirements for registrations from a business standpoint.
Having a great business idea and a team to assist with its execution is not enough, especially with the Government implementation of piles of paperwork, and several registration processes to get through. Not forgetting the interactions they have with so many people whether working within the company as employees or purchasing products as customers. The registrations of companies are for the main reason of protecting all the people within the process.
The Government started working on an online system to assist people with the registration of their companies. Since the system is remote, they can access it from any part of the country and are hopeful that an increasing number of companies will start registering. Furthermore, the benefits of the system are that people do not have to complete the registration through the system and can coordinate it offline or use the business system to gather the information they need for the registration. Most people planning on starting their businesses would not know about the paperwork they need and have to hire someone to assist with it. They can now get through the entire process by gathering all the information that they would need from their end.
People who register for a Shop Act Licence receive multiple benefits. If applicants are looking for a Shop Act licence, they have to register under the shops and establishment act which a mandatory Acts for businesses with a physical registration, ideally encompassing the vast majority of them.
Shop Act License is a type of permission that legally allows companies to conduct business transactions in a particular place. If they have a physical shop or office where they coordinate their business, this license is a must. It provides proof of specific business done at that place and can use it when getting through multiple processes.
Businesses that register under the Shop and Establishment Act receive a Shop Act License which they can use to coordinate a lot of their paperwork and other formalities when running a company. One of the mandatory requirements of running a business is that they have to open a current bank account instead of using the savings account they were working with. Current accounts come with a tonne of financial benefits significantly outweighing savings account, and they can easily open one using their Shop act licence. Furthermore, there are a reduced number of Legal Compliance that they have to get through when they get through the Shop and Establishment License but have to mandatorily display it on the promises of the shop or the premises that tey is running for business.
Another significant scheme they can run is the Udyog Aadhar scheme. It is like an Aadhar card for businesses, with all the information about the company through a simple documentation process that can also be done remotely through the Government website that they have created for the same purpose. It assists with all processes, including applying for a shop act license and makes overall coordination a lot easier. The application process for the Udyog Aadhar takes about ten mins online, but since there are a large number of people who prefer getting through it at the office, they are allowed to download the forms and take them to the office where they can submit the em.
The Government has come up with every option that they can think of to increase the number of people getting through the application process, and they believe that the numbers are significantly increasing since they saw 48 lac registrations in 2018 and these have gone significantly higher. Additionally, they are working on using the pandemic to further jump-start the economy through the registration of multiple businesses since people are quite free with companies laying off large numbers of their staff. These people would have the ability to get through the registration process and promote their idea, which they might have otherwise put off.