The ministry of corporate affairs has introduced a new eform spice + to incorporate a company and claims it is very easy procedure.
Whether it is really so, Let’s examine it from various points of views:
submission of forms: The form is divided into two parts:-
Part A : for reservation of name.
Part B: for incorporation and details of Directors and registered office of the company and other relevant information about all the applicants.
Procedure:
1. To fill in the details you have to login MCA portal and fill in the information. The forms take time to fill in : as Part B has 4 eforms- spiceB ,agile pro, spice moa, spice aoa and inc 9 .The problem is when you fill in the one form to go the next form the login connection cuts off. you have to log in again opening the spice + takes time time and at every form the same problem occurs.
2. Somehow with great effort you fill in the forms and submission of e-forms but the does not complete the process here as the digital signatures have to be attached with the pdf forms after downloading them.
(After submission of all the e-forms download the pdf files to attach the digital signatures of the applicant/ proposed directors and professional.)
3. Attaching all the documents with eforms make it so heavy and further digitally signing them increases the size beyond the prescribed limit, especially spice B+.
4. Somehow the pdf files and uploaded then if it is sent for resubmission the whole process has to be followed again, and if sent for resubmission again, with a sword hanging that it is the last chance now and you may need to pay again the stamp duty.
5. My God (Chalo koi na yeh bhi kar liya),this is done ,wait with your fingers crossed that it is approved otherwise client will not pay even the reimbursement charges, forget your professional fees.
6. It is suggested and requested to Ministry of Corporate Affairs that where there is no stamp duty I mean nominal charges there is no problem but where big amount is paid as stamp duty is not it penalizing the client and the professional to pay the incorporation fee again in way of paying for the stamp duty for uploading e-forms. At times there are technical error happens, e.g. while reducing the size of the e-forms the digital signatures gets removed and the forms gets uploaded even without the error. The due care has been taken that all the documents are upto the requirement of MCA, but technical error occurred and the second chance is missed.
We appreciate that the Ministry of Corporate affairs is taking conscious steps while incorporating the new companies but this form of entity is losing its appreciation among the applicants now due to enormous compliances and tedious process of incorporation atleat payment of stamp duty after second chance should be waived off and documents definitely to be uploaded complete in all respects. New emerging businesses are preferring partnerships and other forms of registration/incorporation to save themselves form compliances and other legalities of companies.
The Process is not at all easy rather more time consuming hence needs some relaxation.
(Advocate Sargun Babuta – sargunbabuta@hotmail.com)
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