Advantages of Registering a New Business in India by Using the Best Digital Platform- SPICe

Narendra Kumar

03 Dec, 2020

Most of the entrepreneurs welcome brilliant ideas for doing business in a smooth and efficient manner. A secure and fast process which will help the entrepreneurs in doing the business is important for the success as well as the security of the business. Hence, it is an important duty of the government to support the new ideas of the entrepreneurs so that they can keep their business ideas secure and safe. Hence, the government of India has made efforts to set up an easy and smooth process for entrepreneurs.

The Government of India^[1] is making a lot of efforts in bringing a dynamic change in this sector. Currently, India has been ranked at 130^th position out of the 190 nations in the index of ease of doing business. The ministry of corporate affairs or MCA has introduced a new version of the SPICe system i.e. one day, one step registration of a company. The new version of SPICe integrates the director identification number, permanent account number, tax deduction account number, incorporation certificate and name approval under a single form and single process.  Let us look at the SPICe digital platform for company registration in detail.

What is the meaning of SPICe? It is very important to understand the meaning of SPICe. It basically stands for “simplified Performa for incorporating company electronically”. Same as the concept of INC29, the simplified INC29 makes an effort in establishing the business in the easiest manner. Whereas, SPICe was introduced to offer a digital platform for registration as well as start a new business in a simplified manner. Under the rules and regulations provided by SPICe, an entrepreneur can pre-draft memorandum of association as well as articles of association electronically. This will help in saving a lot of time as well as removing the various complications from the process of filing the same documents manually with the authorities.

The main highlights of SPICe are mentioned below-

• The form INC32 could be filed after the form INC1 for getting a business name.
• Under SPICe, the memorandum of association and articles of association can be filed through form INC33 and INC34 electronically.
• The witnesses, as well as subscribers, need to affix the digital signatures on the documents mentioned above.
• The introduction of SPICe will phase out the need for INC7 and INC29. Any form of business ownership such as a one-person company, section 8 company, public limited company, private limited company, Producer Company can incorporate using the system of SPICe.

The mandatory documents that are required for SPICe include the memorandum of association of the company, articles of submission, NOC from the partners or the subscribers of the company, identity and residential proofs of the directors and subscribers, etc.

The process of using SPICe is very simple and hassle-free.  In fact, no firm can deny the ease of using this platform for registering a business as well as implementing it effectively