CHENNAI, May 10, 2017 /PRNewswire/ --
Ministry of Corporate Affairs (MCA) has recently introduced new version of SPICe (one day - one step) Company Registration. SPICe stands for Simplified Per forma for Incorporating Company electronically. The new SPICe form takes advantage of re-engineering of the existing process and establishment of Central Registration Centre to complete government processing of incorporation application of a company in a single day. SPICe integrates the allotment of Directors Identification Number (DIN), name approval, incorporation certificate, Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) allotment under a single process, single form. Lionel Charles, CEO of IndiaFilings discusses in details the advantages of the new SPICe form and how India and the MCA has made tremendous progress in making it easier to do business in India.
(Logo: http://mma.prnewswire.com/media/509498/SPICe_Process.jpg )
INC-29 - A Precursor to SPICe
Before, starting to look at the new SPICe form, one should look at some of the steps taken by the Government to make the process of incorporating a company easier and how it has today made incorporation of a company in one day possible. Prior to the introduction of SPICe, Form INC-29 was introduced by the MCA in May, 2015 to simplify the process for incorporation of a company in one step. Under INC-29, the process for obtaining DIN, name approval and incorporation was streamlined into a single process. However, INC-29 was not without drawbacks and since the INC-29 form had name reservation and incorporation combined in one step, if the name of the company was rejected by the Registrar of Companies, the incorporation documents had to be redone completely. Further, the applications were also processed by the concerned ROC, leading to differing timelines for incorporation.
Consolidation under Central Registration Centre
In March 2016, the MCA introduced the Central Registration Centre, consolidating all name approval and incorporation processing under one centre. With consolidation of all name approval and incorporation application under one Centre, the time taken for name approval, incorporation, etc., was completely streamlined and the processing time significantly reduced. Currently, almost all incorporation and name approval applications are approved within the same day. Moreover, the consolidation of incorporation and name approval under the Central Registration Centre laid the foundation for the newly-introduced SPICe form, delivering 5 different steps in one process.
SPICe with eMOA and eAOA
In October 2016, the MCA introduced the first SPICe form with the provisions for filing eMOA and eAOA. While incorporating a company, preparation of Memorandum of Association and Articles of Association takes significant time for a Professional. To simplify this and standardise the charters of all companies registered in India, the SPICe form with eMOA and eAOA was launched.
After introduction of SPICe, all the previous forms for incorporation of a company were also discontinued, making SPICe form the only route for company registration. The present SPICe form however can be used only for name, incorporation and PAN allotment. It's not possible to get DIN using the SPICe form. Hence, DIN and TAN application had to be separately made.
New SPICe Form - One Day Company Incorporation
In April 2017, the MCA has announced the SPICe features on its website through an advertisement. The new SPICe form would combine the process for obtaining DIN, Name Reservation, Incorporation, PAN and TAN in a single step - fully consolidating the incorporation process of a company into one step. The new SPICe form integrates the process of getting DIN and TAN also into the same step, reducing the number of forms filed. Finally, the form also states that incorporation fee would also be reduced from Rs. 2000 to Rs. 500.
Company incorporation in one day
Incorporation of a company involves drafting and submission of various documents to the MCA. The Government has assured processing of all SPICe forms within 1 day. It's a commendable step and will certainly be fulfilled by the Government at its Central Registration Centre as the Central Registration Centre already provides incorporation application processing within 1 day.
However, the number of documents that have to be submitted for incorporation of a company are still fairly extensive and Digital Signature Certificate has to be procured which easily takes about 1 - 2 days in most cases. Under the new SPICe and eMOA, DSC is required for all Directors, Shareholders and the MOA/AOA witnesses.
Hence, even if a SPICe form is used and if incorporation documents are drafted by a professional within 1 day, it would take about 2 - 3 working days for incorporation of a company. (1 Day for Document Preparation and Digital Signature Application, 1 Day for Signing Documents and 1 Day for Incorporation Processing). However, for those having an existing Digital Signature, company incorporation in one day is certainly possible.
Thus, for Professionals/Entrepreneurs who choose to start a company with a very unique name, SPICe form would certainly be a major game changer making it very easy to register a company. If the Professional with certainty is able to file the SPICe form that the name is very unique, then majority of the steps of incorporation of a company would be combined, providing the Professional with a DIN, name approval, Incorporation Certificate, PAN and TAN in the same week.
About IndiaFilings
IndiaFilings is India's online platform offering a range of services like company registrations, trademark filing, GST registration, GST filing, income tax filing and cloud-based accounting software services. IndiaFilings has helped thousands of Entrepreneurs and individuals with quality and reliable business services online at an affordable price point.
For more information, please visit https://www.indiafilings.com/company-registration.
Media Contact:
Deepak Menon
[email protected]
+91-44-40247777
PR Manager
IndiaFilings
Share this article