Company Registration

Form INC-29 – Fast Track Company Registration

Form INC -29 is a valuable instrument for accelerating the incorporation of a company in India. In order to establish a separate and single clearance gateway for Companies to be registered, the Ministry of Corporate Affairs created the Form INC-29.

The Ministry of Corporate Affairs (MCA) introduced the Integrated Incorporation Form, also known as the e-Form INC-29, in an effort to dramatically shorten the time required to incorporate a business in India. This five-in-one form speeds up the registration procedure by removing the need to submit multiple forms in order to create a company in India. 

Form INC-29

The single application for name reservation, new business incorporation, and application for DIN allocation are all covered by E-Form INC-29. The supporting materials for this e-Form include information about the Directors and Subscribers, the MoA and AoA, among other things. After the e-form has been reviewed and determined to be complete, the company will register.

Moreover, suggested Directors who lack a valid DIN are provided one. The number of Directors who may use this integrated form for DIN allocation during business incorporation is limited to three.

Documents Required For INC-29

The following documents must be submitted in order to register a business using the INC 29 form:

• Proof of registered office location
• Identity proof of the proposed Directors (PAN card or passport)
• proof of the proposed directors’ addresses (Aadhaar card, driving license, or passport)
• Articles of Association (AOA)
• Memorandum of Association (MOA)
• The company’s constitution documents, the MOA and AOA, set forth the objectives and rules of the organisation.

Step-by-step procedures

The extensive yet simple process for registering your business is outlined in the steps that follow.

Step 1: Get a DSC

Obtaining the digital signature of at least one director of the company that will be registered is the first step in filing Form INC-29. To sign documents, the director will require a Class 2 Digital Signature^[1].

Filling out the Digital Signature Form will get you a digital signature. A self-attested copy of your PAN card and address verification is also required. It is a USB token that contains the digital version of a real certificate. This task can be finished in two days.

Step 2: Prepare Your Documents

Start preparing the documents for filing INC-29 even while you’re waiting for the DIN. This is due to the requirement that one single form be filed with all necessary attachments for the incorporation process. Also, you only get one chance to submit the same thing again.

So, you will need to start filling INC-29 all over again if you make a mistake after the Registrar has already pointed up the issues with your application. Even worse, you could need to request a reimbursement for the government fees you initially paid.

So here are the documents you need to get in order to file the single application:

1. Director Identification Number: The Director Identification Number (DIN) is how the MCA identifies directors of companies. A single director can have only one. Up to three directors, including the one with the DSC, may apply for a Director Identification Number (DIN) through Form INC-29; the rest, if any, should do so separately (the old procedure allows for an unlimited number of applications). The documents needed are the same as for the DSC, but you’ll also need to provide a Passport-sized photograph of each applicant.
2. Name Reservation: You must think of just one name, just one right name for the company. The new procedure only permits one submission as opposed to the old procedure’s six. So, you must be careful when choosing a name. You should achieve this by adhering to the MCA’s name standards. It requires that another private limited company has taken neither the name nor a registered trademark with the same name. Moreover, make sure your name includes a distinctive word and a word that accurately reflects the industry you work in. The –29 form also inquires as to the significance of the chosen name.
3. Appointment Letters and Declarations – Letters of appointment of directors, CEO, and managers, a declaration by the first director in INC-9 and by the appointee and managing director in DIR-2.
4. Association’s Memorandum and Articles – The Form INC-29 must have the attached Memorandum of Association and Articles of Association. A Company Secretary is required to sign these documents.
5. Verification of the registered office: You must upload a soft copy of the rental agreement and a letter from the owner stating that they have no objections. The sale deed documents would have to be provided if the company owned the land.
6. Letters of Appointment and Declarations: First Director’s Declaration in INC-9, as well as CEO and managing director Appointment Letters and Declarations in DIR-2, should be there to apply.

Step 3: Form INC-29 filing

Once you have all the necessary documents, you can submit the INC-29. Make sure that all the information is entered accurately. You only get one chance to submit your document again. You will be instructed to pay the fees and stamp duty when you file the document. The authorised capital and the state where the company is being registered will determine the fees (Punjab and Kerala, for example, have much higher stamp duty rates). You will receive the Certificate of Incorporation within 10 to 25 days, depending on the workload of the MCA, the thoroughness of your application, and the complexity of your firm. 

Step 4: Get PAN and TAN

Both a Tax Account Number for a company in order to deposit tax that has been withheld at the source and a Permanent Account Number in order to register with the IT department are necessary. The documents will be delivered to the registered office address within seven working days. You can create a current account and start your business once you have your PAN card and TAN.

Disadvantages of Form INC-29

You won’t know where your form is stuck because all the processes are merged. Thus, there is no way to track it. It might be frozen at the incorporation, DIN, or name approval stages. The only option is to wait for the file to be returned in the absence of a tracking mechanism.

• Despite having the freedom to choose from six possibilities, the Registrar typically takes more than seven working days to approve names under the old approach. Rejections seem inevitable under the new approach, where only one can be submitted due to the suggested name.

• A single resubmission is insufficient because some aspects of the registration procedure are still so arbitrary. As an illustration, the Registrar has complete discretion over the name approval procedure. If your name is denied more than once, you will need to submit the form and pay the fee once more.
• Even with Form INC-29, registering a company is still a time-consuming process because the MCA did not eliminate any submissions; instead, it simply merged them. Depending on the cost of the company secretary you select, the overall cost will vary.

Conclusion

The new Form INC-29 form has a three-step process for company registration. Within 14 working days, you could get the incorporation certificate if you use the correct procedure and move quickly. But, you should always be prepared for a longer wait, especially if the Registrar of Companies (RoC) is currently overburdened or if your suggested company name is rejected the first time.

Also Read:
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SPICe has Emerged to Be the Most “Fast-Track Company Registration System”