MCA simplified procedure of company incorporation and establishment of principal place of business in India by Foreign Companies
- Thursday, March 10, 2011, 17:53
- Company Law
- Notification
MCA has issued General Circular No. 6/2011, Dated 8th March, 2011 with following objects of Reducing the time taken by the Registrar of Companies in Incorporation of Companies and Speeding up and simplifying the process of incorporation and establishment of principal place of business in India by Foreign Companies. Main advantage of the circular is that it aims to reduce Average time taken to incorporate a Company to 1 day.
Main Recommendations in circular to achieve above objectives are as follows:-
- Only Form-1 shall be approved by the RoC Office.
- Form 18 and 32 shall be processed by the system online.
- There shall be one more category, i.e., Incorporation Forms (Form 1A, Form 37, 39, 44 and 68) which will have the highest priority for approval.
- Average time taken for incorporation of company should be reduced to one (1) day only.
- A Notification to notify minor changes in e-forms 18 and 32 to enable them to be taken on record through STP mode for aforesaid procedure is being issued separately.
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General Circular No. 6/2011, Dated 8th March, 2011
Sub: Process of incorporation of Companies ( Form-1) and establishment of principal place of business in India by Foreign Companies ( Form-44) – Procedure simplified.
I am directed to inform that Ministry has received various representations regarding time taken by the Registrar of Companies for registration of Form-1 and Form-44.
The Ministry has got the issue examined by Business Process Re-engineering Group under MCA-21 and in order to speed up and simplify the process of incorporation of Companies and establishment of principal place of business in India by Foreign Companies for reduction in time taken by Registrar of Companies, the below mentioned procedure have been recommended :
1.Only Form-1 shall be approved by the RoC Office. Form 18 and 32 shall be processed by the system online.
2.There shall be one more category, i.e., Incorporation Forms ( Form 1A, Form 37, 39, 44 and 68) which will have the highest priority for approval.
3.Average time taken for incorporation of company should be reduced to one (1) day only.
4.A Notification to notify minor changes in e-forms 18 and 32 to enable them to be taken on record through STP mode for aforesaid procedure is being issued separately.
Yours faithfully,
( Seema Rath )
Assistant Director (Inspection)
Tele : 011-23387263
Tele : 011-23387263
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- Incorporation in India Must For Foreign Banks
- Storage and Supply of goods in India through an independent third party gives rise to fixed place permanent establishment in India
- Section 195 of IT Act, 1961 is applicable even when deductee is a foreign company and assessed in India due to its business presence in India
This is perhaps the best that the MCA can extend to the promoters who are likely to set up companies and would like to get going with the business matters immediately.A welcome step in the right direction.