Union Minister for Corporate Affairs M Veeappa Moily on Saturday said a provision in the proposed Companies Bill would allow a minimum of 10 people to come together and form a company with “less rigour of company law and regulations”.
He said the Producers’ Societies provision in the new bill would promote entrepreneurship.
These societies would be “loosely knit companies” and easy to form in the sense that “rigours of company law will be less as also (less) regulations”, he said at a function organised by the Federation of Karnataka Chambers of Commerce and Industry.
“I would like to take it (producers’ societies) up as a movement,” Moily said.
The minister also said India would come out with its own “business index” within the next six months and would identify deficiencies and address issues of hassles.