The Indian government has come out with a new format for forming/ registering and incorporating companies in India. This particular format is being referred to as Simplified Proforma for Incorporating Company Electronically (SPICe). There are certain rules in India that are meant to govern these issues. For example in order to incorporate a Private Limited Company in India you need to have at minimum two members and two directors as well. In case it is a one person company there should be one member and one director. In any case a lot of information and documents need to be submitted in order to start a business in India.
The forms need to be filed during incorporating a business entity
While starting a business in India a company also has to file forms such as E-form INC-7, INC-22, and DIR-12. Normally, with all these formalities it takes around a month to get a company registered. However, the central government has made some major changes from 1st February onwards as far as the process of Company Incorporation is concerned. It is expected that this would reduce the time taken to incorporate these companies. The new process that it has started in this regard is known as “Incorporation through SPICe form”.
The background of SPICe act
It was on 1st October 2016 that the Indian government had amended Companies (Incorporation) Rules 2014 and also notified Companies (Incorporation) Fourth Amendment Rules, 2016. On 29th December 2016, the Indian government amended Companies (Incorporation) Rules 2014, and also notified Companies (Incorporation) Fifth Amendment Rules, 2016. All the changes came into play from 1st January 2017. Thanks to the amendment the process of incorporation became a faster through SPICe and can also use this form of incorporation in order to apply for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).
Information on SPICe
It is also referred to as E-Form SPICe (Form INC-32). The form deals with a single application that is meant to serve the purpose as far as reserving your company’s name, incorporating a new company, and/or applying for Director Identification Number (DIN) is concerned. You can also file the form even if the director does not have DIN. In this form at the most three directors would be allowed to fill up their respective details in order to file application for a DIN to be allotted to you. This can be done while incorporating a company.
E-Form SPICe (Form INC-33, INC-34) is to be filed with SPICe (INC-32) to get approve certified copies through MCA. E-Form SPICe (Form INC-33- MOA) which contains main objects of the Company and it also called as charter of the company whereas E-Form SPICe (Form INC-34 - AOA) which holds the rules and regulations available to the Company and subscription sheet has to be signed digitally by the promoters of the Company in MOA and AOA.
After the e-form has been processed and found to be complete the company would be registered and Certificate of Incorporation (CIN) would be allotted. The PAN would also be allotted as part of the CIN. Along with this, DINs are issued to director who does not have a proper and valid DIN as such.
How to fill up the form?
While filling up the form there are certain things that have to be kept in mind. First of all, you need to choose the kind of company you are trying to set up. The various choices that you have in this regard are New Company, Producer Company, Section 8 Company and Part I Company.
The next thing that you need to do is choose the class of company – private, one person, or public. The third step that you need to take is to choose the category of your company – would your company be limited by shares or would it be limited by guarantee or would it be an unlimited company. Herein, you also need to specify the applicable main division code with respect to the industrial activity that your proposed company would be a part of. You will also have to specify subscriber and authorized equity as well as the preference capital of your company, AO type for PAN and TAN with respective state codes, number of shares for each Director/promoter and last but not least attach all the required documents.