The Ministry Of Corporate Affairs Simplifies The Process For Incorporation Of Companies

The Ministry of Corporate Affairs (“MCA”) has recently notified the proposed deployment of a new web form “SPICe+” for incorporation of companies. The web form has been issued as part of the Government’s Ease of Doing Business initiative and has replaced the existing SPICe form.

The major changes introduced in the company incorporation process are:

• The integrated web form will offer 10 services by 3 Central Government Ministries and Departments i.e. Ministry of Corporate Affairs, Ministry of Labour and Department of Revenue in the Finance Ministry and one State Government i.e. Govt. of Maharashtra.
• The web-form would be structured into 2 parts viz.; Part-A for Name reservation for new companies and Part-B for offering the following services:
  Incorporation
• DIN allotment
• Mandatory issue of PAN
• Mandatory issue of TAN
• Mandatory issue of EPFO registration
• Mandatory issue of ESIC registration
• Mandatory issue of Profession Tax registration (Maharashtra)
• Mandatory Opening of Bank Account for the Company and
• Allotment of GSTIN (if so applied for)
• The users have an option to either first, submit Part-A for name reservation and subsequently submit Part-B for incorporation & other related services, or to file Part-A and Part-B together.
• The MCA has also come up with an AGILE PRO form, as a part of SPICe+, for application of GSTIN/ EPFO/ ESIC/ Profession Tax/ opening of a Bank Account.
• Further it has been clarified that all new companies being incorporated through SPICe+ (w.e.f. 15th February 2020) would be mandatorily required to apply for EPFO and ESIC registration no. and registration of opening the company’s Bank account through the AGILE-PRO linked web form.
• The MCA has also stated that the RUN service will be applicable only for ‘change of name of an existing company’ with effect from February 15th, 2020.

The integrated web form has been introduced as a part Government’s initiatives for Ease of Doing Business (EODB) in order to further simplify the incorporation process, consequently it will immensely help the users to save time and cost while setting up a business in India.

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