A whooping numbers of more than 3 lakh companies being registered in India from 2016. Sounds shocking and amazing, but this is right and possible only because of the change in the norms, rules and regulations in incorporating a company by the Ministry of Corporate Affairs.
Prior to 2016 starting your business in India was not that easy and it would take a long time to incorporate your company. The name approval process itself would take anywhere between 5-15 days. Also to reserve your company name prior would require filling a form called INC-1 and there was a requirement to fill a considerable of 15 important fields. This has been improvised by replacing the INC-1 form with a simple web service which requires only 3 relevant fields to be filled.
This itself is a great saving on the timelines of getting the registration done. Next important reform taken is the all new integrated E-Form SPICe. Before this form had been introduced, from name approval to company incorporation to DIN Registration everything was done separately, but with the SPICe E-Form applying of Company Name, Company Incorporation, DIN of the Directors, PAN and TAN can be integrated simultaneously.
So we can say that the procedures have been simplified to make the incorporation better and easier.
Also now the Company seal is not mandatory which is eliminated as per the Company (Amendment) Act 2015.
The next step taken towards the ease of doing business is the fee structure involved. There will be no fees for filing SPICe form, MOA and AOA in two cases:
- Suppose your authorized capital is upto 10 lakh and if the company also has a share capital
- Secondly, when the members in the company are upto 20 and the company does not have share capital.
So in brief I would like to capture the major changes which have improved the entire company registration process: (4 important reasons)
- The number of days reduced in getting the name approval done
- Five procedures including name approval, Company Incorporation, DIN of the directors, PAN and TAN integrated simultaneously with E-Form SPICe
- Zero cost involved for filing SPICe, MOA and AOA in terms of share capital, authorized capital and number of members
- Company seal is not mandatory.
Here is the HIGHLIGHT of the outcome of the procedures involved. (Taken from MCA Portal)
This bit of information is very important to know, especially for entrepreneurs who have already decided to get there company incorporated. Though at a certain point of time it’s easier to approach the experts for getting the company registered still to have an insight into the timelines and cost involved for certain procedures is very important.
Without a company registration you cannot start a business is a known fact, but you should also be known about what all is involved in a company registration. Usually, only company registration process takes approximately anywhere between 10-15 days provided proper documents are submitted.
The process involves; Name Approval, drafting of MOA and AOA under the certification of a professional Chartered Accountant or Company Secretary, Director Identification Number (DIN), Digital Signature Certificate (DSC), Company PAN and TAN and finally your incorporation certificate.
Hope this blog has made it clear that today starting or doing a business in India is made much easier and simpler to encourage more number of start-ups in the making of New India with innovative ideas and also to run a business legally.