Benefits of Registering a New Business in India by Using SPICe
A decision to start a business is huge. Before making a decision to start a new business, we must consider the pros and cons of the business. We should consider all the aspects of the business in which you are entering.
Starting a business in India in the current scenario is going to be beneficial to the government of India, which is taking various measures to improve the business condition of the country. The current ranking of India for ease of business is 130th out of 190 countries.
The Honorable Prime Minister has decided to bring India among top 50 nations in which doing business is easy and beneficial. Made in India and Startup India are the initiatives taken by the Prime Minister to reach the goal of getting into top 50 business friendly nations.
To promote the investment in Indian businesses, the government is encouraging Foreign Direct Investment. The government has made many policies to encourage FDI. FDI is allowed up to 100% in most of the sectors except for the sectors which are capped.
The government is making efforts to ease up the process of starting a business in India. SPICe is used to ease the process of incorporating a business in India.
SPICe is Simplified Performa of Incorporation of Company Electronically. It has replaced the previous lengthy process of incorporation. It has reduced the cost of incorporation of companies and also is saving time by doing incorporation through a single window application. Under SPICe, Form No. INC-32 is a single window application. A single form can be filed for name approval, applying of DIN, if the registered address is the same as given in INC-32, there is no need to file INC-22 for the registered office of the company.
Although you can put just one name for approval in INC-32, if that name is not approved, the whole process is wasted. So INC-1 is still in use for name approval. You can also file for DIN approval in INC-32, but it is also up to 3 directors only.
e-MOA and e-AOA are filed along with INC-32 in Form No. INC-33 & INC-34 respectively. You don’t have to file physical MOA and AOA. In eMOA and AOA you don’t have to draft separate MOA and AOA. There is already a drafted format for MOA and AOA, you just have to select the format that suits your company’s needs.
The Procedure for Registering a Pvt Ltd Company using SPICe:
To register a private limited company under SPICe, we cover following aspects:
- DSC and DIN for the proposed directors of the proposed company.
- Reservation of name of the company at the Portal of Ministry of Corporate Affairs.
- Filing of eMOA & eAOA.
- Applying for PAN & TAN.
- MCA govt. fee.
Documents required for company registration by SPICe Form INC-32:
- Affidavit and Declaration by First Subscriber(s) and Director(s).
- Proof of Address.
- Copies of utility bills (not older than 2 months).
- NOC from sole proprietor/partners/other associates/existing company.
- Proof of identity and residential address of subscribers.
- Proof of identity and residential address of Directors.
- Memorandum of Association only in case of Section 8 Company or company with foreign subscribers not having DIN.
- Articles of Association only in case of Section 8 Company or company with foreign subscribers not having DIN.
- A copy of approval in case the proposed name contain any word(s) or expression(s) which require approval from central government.
- If a proposed name is based on registered trademark or is a subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy.
Types of company registration That can be Registered using SPICe Form:
- One Person Company
- Private Limited Company (with 7 or less than 7 subscribers)
- Public Limited Company (with 7 or less than 7 subscribers)
- Section 8 companies (up to 7 seven Subscribers)
- Producer Companies (Up to 7 subscribers)
- Companies with Foreign Subscribers (Up to 7 subscribers)
Advantages of Registering a Private limited company using SPICe
- It has made incorporation of companies easy, simple and hassle-free.
- You don’t need to file separate form of name approval in advance.
- There is no need to file separate forms for appointment of first Directors.
- There is also no need to file separate INC-22 for registered office.
- It is a single window application. There is no need to file any other form apart from SPICe form to incorporate a company.
- eMOA & eAOA is filed under SPICe, there is no need of physical MOA & AOA.
SPICe has made starting a business in India easy. It is a completely online process which saves us from a lot of paperwork and visits to the offices of a register. Registration of a business though SPICe has made the implementation of compliance easy and user-friendly. The easy process of registration of a business attracts investors to start a business in India. Approximately, more than one Lakh companies are registered in India every year. More than 9,000 companies are registered every month through SPICe.
Click here to Register New Business in India by using SPICe.