As we all know, on 6th February, 2020 Ministry of Corporate Affairs (MCA) has introduced a new process of incorporation of Companies via notifying Companies (Incorporation) Amendment Rules, 2020.
As stated in Notification, it shall come in to Force from 15th February, 2020 onwards.
I have segregated the changes in three parts for the purpose of understanding the same.
Following are the vital changes notified by Ministry:
Page Contents
1. Rule-9 of Companies (Incorporation) Rules, 2014 has been substituted:
New Rule-9:
Reservation of name or change of name:-
An application for reservation of name shall be made through the web service available at www.mca.gov.in by using web service SPICe+ (i.e. Simplified Proforma for Incorporating Company Electronically Plus: INC-32), and for change of name by using web service RUN (i.e. Reserve Unique Name) along with fee as provided in the companies (Registration Offices and Fees) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, central Registration center after allowing re-submission of such web form within fifteen days for rectification of the defects, if any with effect from the 15th February, 2020.
Old Rule: 9
Reservation of Name
An application for reservation of name shall be made through the web service available at www.mca.gov.in by using RUN (Reserve Unique Name) along with fee as provided in the Companies (Registration offices and fees) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre]
Explanation:
MCA has prescribe following:
1. Application for Reservation of Name will be done through SPICe+ (i.e. Form INC-32) only instead of using RUN. RUN will be used for Change of name only and not for reservation of name.
2. CRC (I.e. Central Registration Center) will approve or reject the same within 15 days.
3. CRC will allow resubmission for rectification of defects.
2. Change of Name of Form:
As specified in Notification In Rule 10, 12, 19(1), 38(1), 38(2), 38(3), 38(4), 38(7), 38(9) Companies (Incorporation) Rules, 2014, wherever Form INC-32 (SPICe) is mentioned will be substituted with the name SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) with effect from 15th February, 2020.
Rule 38, in the marginal heading, for the words and letters “Electronically SPICe”, “Electronically Plus (SPICE+)” shall be substituted with effect from the 15th February, 2020.
Explanation:
This Section of notification specifies nothing but mere change of name of Form in various specified provisions from “ SPICe” to “SPICe+”
3. Additional Registration Facility with change in Rule 38A:
New Rule 38A:
The application for incorporation of a company under rule 38 shall be accompanied by e-form AGILE – PRO (INC-35) containing an application for registration of the following numbers, namely:-
(a) GSTIN with effect from 31st March, 2019
(b) EPFO with effect from 8th April, 2019
(c) ESIC with effect from 15th April, 2019]
(c) Profession Tax Registration with effect from the 15th February, 2020
(d) Opening of Bank Account with effect from 15th February, 2020.
Old Rule 38A:
The application for incorporation of a company under rule 38 shall be accompanied by e-form AGILE (lNC 35) containing an application for registration of the following number, namely:
(a) GSTIN with effect from 31st March, 2019
(b) EPFO with effect from 8th April, 2019
(c) ESIC with effect from l5’h April, 2019
Explanation:
Ministry has introduced AGILE – PRO in place of AGILE. As the name conveys it is the latest or improved version of AGILE. Earlier AGILE was providing registration of GST, EPFO, ESIC where AGILE PRO is providing facility of Professional Tax Registration and Opening a Bank Account in addition to current facilities. These facilities will be optional just like other facility. It is upon the Company whether they want to opt for it or not.
4. Introduction of Form SPICe+:
Ministry has notified format of SPICe+, AGILE PRO, RUN and INC-9 which will be available from 15th February, 2020 onwards.
Information provided by me in this Article is completely based on the MCA Notification dated 6th February, 2020.
Link: Companies (Incorporation) Amendment Rules, 2020
For Any Queries and clarification you may contact me on mail to: bhatt.associates2020@gmail.com
Author Bio
What is the point of making registration for EPF, ESIC and PT compulsory. All new companies are not liable under these acts. It will unnecessarily increase compliance burden.