Every year Ministry of Corporate Affairs (MCA in short) making amendments to Companies (Amendment) Act, 2015 to improve “ease of doing business” (‘EODB’) while stringent measures are taken to increase the overall company compliance to reduce fraud, eliminate shell companies. MCA has issued a new notification that was primarily focused on the ease of starting a business (‘EOSB’).
EZTax.in made representation on such efforts to Ministry of Finance, made social through channels like Twitter etc to reduce Government fees, remove CA attestations, by using simple, easy to use Aadhaar based self attestation of a company unless it involves money lending, and other restricted businesses.
Highlights as per the MCA Notification to reduce the overall process through a Single Form and targeted to process under 5 days are
- A new Web based Form named ‘SPICe+‘ (pronounced as ‘SPICe Plus‘) to make starting a new company in India easier than ever and targeted to be done under 5 business days *.
- SPICe Plus would be an integrated Web based form offering multiple services like ‘name reservation’, incorporation, ‘DIN allotment’, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra), and ‘Opening of Bank Account’. Interesting to see how this process facilitate opening of a new bank account as it highly depends on the interests of the business rather just opening a bank account.
- The new SPICe Plus form also facilitate the allotment of GST Number if interested by the business.
- After deployment of SPICe Plus web based form, RUN process (stands for ‘Reserve Unique Name’) process is expected to be applicable only for change of name of existing companies.
- No minimum paid up capital requirement to start a Company
- Zero MCA fees for all company registrations with authorized capital up to Rs. 15 Lakhs
- Removal of affidavit requirement: Director declaration to be given in SPICe Plus itself, in place of affidavit that need to be prepared on a stamp paper & signatures etc. This step not only saves time but also money to be paid to the stamp paper and hassle of signing the papers by all the directors.
- Application for license and incorporation of the ‘section 8‘ companies are to be submitted in a single SPICe form. Earlier such license was obtained through e-form INC-12 from respective ROCs/RDs which is now merged with SPICe and is made centralized. This simplified process has reduced the time line for incorporation of section 8 Companies.
- New Company Naming guidelines provided to reduce the ambiguity in identifying a unique company name to increase speed and transparency, & uniformity.
With the changes coming and reducing the cost of incorporation / registration of a company, it’s certainly an exciting time to start a new company.
Note: A new business can be incorporated thru many entity types, it would be under / as a Proprietor, MSME License, a Partnership Firm, OPC, LLP, and a Private Limited Company.
For more information Check more to “Compare Business Registrations in India“.
Or Speak to EZTax.in Expert @ 7288 900 900 to start a new business in India.
Authorized Source: Ministry of Corporate Affairs and Team EZTax.in