July 25,2019:
Business sector is one of the major economic driving forces which contribute immensely to the economic-cultural development of the nation.
Accordingly, it is crucial to maintain a database of businesses registered in any jurisdiction to keep track of the contributions made by the business sector in terms of revenue and business.
With the target to build a unique database of all businesses in the nation - The Ministry of Statistics and Programme Implementation (MoSPI) plans to amass a National Business Register (NBR) of all businesses in India on similar lines with the National Population Register – the said register will get updated periodically.
NBR will serve as a unique database comprising with the information related to establishments (engaged in production/distribution of goods and services) located across all the districts in the country.
NBR will cover the information (Enterprise Name, Registered Office Address, Ownership Mode, PAN/TAN, Workers Count, Nature of Business and other related information) related to all businesses operating in the country.
As of now, the statistics related to industries are segregated with the assistance of Annual Survey of Industries (ASI) which is the principal source for industrial data compilation. The prime backdrop of ASI is that such survey covers mainly bigger manufacturing units in organized sector but leaves out other industrial sectors / units.
NBR may be a good option to preserve accurate data related to business establishments in organized as well as unorganized sectors – the data pertaining to unorganized sector is vital to assess the real picture of the nation economy and employment ratio as 80% of the businesses is estimated to fall under the unorganized sector.
The NBR will facilitate the users to access the financial/non-financial data related to all business establishments in organized and unorganized sectors and will serve as medium of knowledge to users and assist them in understanding the nuances of nation economic progress.
NBR will be a combination of business establishments registered (at the district level) with the authorities and acts (Directorate of Industries, Khadi/Village Industries Board, Companies Act, Factories Act, Shops and Commercial Establishments Act, Societies Registration Act and the Co-operative Societies Act).
Business registers have already been created by few Indian States but these registers are not being constantly updated. With the inception of NBR, all the business registers will be up to date.
An accurate and up to date compilation of data related to business establishments on a pan- India basis will facilitate the central government and citizens to access and evaluate the data associated with the business sector in a distinct database. Such data will not only form the basis for the analysis of socio-economic progress but also identify any lacunas in the business regime hindering the economic prospects of the country.
All in all, NBR will serve as a tool in the armor of the central government to formulate right course of action to confiscate the lacuna in the business system and to accelerate the progress of the Indian economy.
The Author, Bhumesh Verma,, is a Corporate Lawyer with over 2 decades of experience in advising domestic and international clients, with a place in “The A-List – India’s Top 100 Lawyers” by India Business Law Journal. He keeps writing frequently on FDI, M&A and other corporate matters.
