On the other hand, Kolkata is the toughest place for closing a business among 17 cities, while Bengaluru requires the maximum efforts to start a company, it says.
The city-wise details are part of separate 216-page report by World Bank and International Finance Corporation (IFC) on doing business in India, which was yesterday ranked 134th globally in terms of ease of doing business.
According to the report, it requires 32 days for starting a business in New Delhi, while it takes 40 days to register a company in Bengaluru.
Besides, a total of 11 procedures (any interaction of the company founders with external parties such as government agencies, lawyers and auditors) is required to register a firm in New Delhi, while 13 procedures need to be followed in case of Bengaluru, the study said.
In terms of ease of doing business within India, New Delhi is followed by Patna, Jaipur, Hyderabad and Bhubaneshwar.
When it comes to closing a business, Hyderabad is best place as it takes an average of seven years to wind up an enterprise, while Kolkata is the toughest place for closing a firm by taking an average of 10.8 years.
Among other top five cities, where closing a business is easy are Ludhiana, Mumbai, Ahmedabad and Bhubaneshwar.
In the 'Ease of Doing Business' ranking of 189 economies, India has dropped from 131 spot to 134 position, while Singapore continues to remain at the top.
The rankings are based on various parameters including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
Overall, India's business environment has come for criticism on various issues in the past including in Vodafone tax dispute and recently in the case of industrialist Kumar Mangalam Birla.
After a FIR was filed by CBI against Birla in a matter related to coal blocks allocation, several industrial leaders and even some ministers spoke about the need to improve business sentiment and investor confidence.