Company registration can be a tedious process. However, with the right guidance and following the correct procedure, it can be made very easy. With the age of digitalization and the government taking steps in a more modern approach to providing the public with facilities and services, the government has provided for the entire process of company registration to be done on the internet. The people can do so by simply filling out a few forms in the correct format and submitting all necessary documents.
COMPANY REGISTRATION IN INDIA
In India the law relating to the registration of companies is given in the Company Act, 2013. It provides for various steps and stages in the registration of companies. To begin with one must obtain a Director Identification Number. Following this one must obtain a digital signature certificate. The next step would be to obtain approval for the name, the Memorandum of Association, the Articles of Association and file all the necessary documents online. The final step is to obtain the Incorporation Certificate. In some cases, a company may also be required to obtain a Certificate to Commence Operations.
A new set of rules were released by the Ministry of Corporate Affairs in 2016 with further simplified the procedure to incorporate company in India and company registration. The SPICe (Simplified Performa for Incorporating Company Electronically) introduced the INC-32 form through a notification of the Ministry of Corporate Affairs. The SPICe form provides for the preparation of an e-Memorandum of Association and an e-Articles of Association.
Previously, a person wanting to incorporate a company had to go through a lengthy process of applying for Director Identification Number, Approval of name, etc. However, under the INC-32, this process has been shortened since this form provides a single window for fulfilling the following purposes:
1. Application for up to 3 directors’ Director Identification Number.
2. Application to check for and approve the name of the company.
3. Reduces the need to file a separate form for DIR-12, INC-22 for TAN and PAN.
However, SPICe doesn’t provide for TAN and Director Identification number, so an application for those has to be filed separately.
FEATURES OF INC-32
1. Allows for up to 7 subscribers, and if more are needed then the normal process for incorporation under INC-7 will have to be followed.
2. Allows for up to 20 directors.
3. Allows for application of name of the company.
4. Mandatory for all fresh applications for incorporations to apply for TAN and PAN through these forms.
DOCUMENTS TO BE ATTACHED WITH AN INC-32 FORM
1. E-Articles of Association and e-Memorandum of Association.
2. DIR-2, a declaration from the first directors accompanied by a copy of the residential proof and the identity proof.
3. INC-9 Affidavit along with a declaration from the directors and the subscribers.
4. No Objection certificate from the property owner.
5. Office address proof.
6. A copy of utility bills, however these must not be older than 2 months.
INCORPORATING A COMPANY IN ONE DAY
The Ministry of Corporate Affairs, in 2017 April announced a new set of features under the SPICe scheme. Following this, the SPICe form would include the attainment of Director Identification Number, reservation of name for your company, incorporation TAN and PAN. Therefore, under the new process there would only be a single step in the process of incorporating your company. At the same time, the fee for incorporation has been reduced to Rs. 500 from a previous cost of Rs. 2,000.
Should an entrepreneur be able to collect and file all the necessary documents to the Ministry of Corporate Affairs, a company can be registered in one single day. The government has assured the public and businesses that all SPICe forms would be processed within 1 day. On top of this the Central Registration centre already provides for the processing of applications for incorporations to be done within 1 day.
ADVANTAGES OFFERED BY SPICe
The form allows entrepreneurs and other professionals to hasten the procedure for incorporation significantly. A lot of the time is often taken up in the approval of name, and therefore choosing a unique name for your company can make the procedure even faster. The form allows companies to be incorporated at a much faster pace as long as they are able to compile and file all necessary documents within the stipulated time. The SPICe forms have been a game changer in many aspects, the most important one being that it allows for application for Director Identification Number and TAN in one place itself. This has allowed to make the procedure for company incorporation and registration much faster and smoother.
DRAWBACKS OF SPICe
While the SPICe form comes with a bigger hope to all the entrepreneurs, it also has a few drawbacks. The biggest problem that all registration forms pose is that of the name. This problem remains UN addressed in the INC-32. If the name of the company is not unique or not approved and therefore rejected, for any reason at all, the entrepreneur must start from scratch. All the documents will have to submitted once again.
At Company Vakil all your needs related to registration of your company can be fulfilled. Our employees are well versed and trained in the field of company registration. With Company Vakil’s online processes, your company will be registered with minimal difficulty from your end, and that too the lowest price in India.