Companies Registered Under Spice+ Form A and Section 8

Details of Company Registrations via Spice+ Form A

On November 25, 2024, in response to an unstarred question during the Lok Sabha session, the Ministry of Corporate Affairs (MCA) provided data on the companies registered through Spice+ Form A and Section 8 companies. The question was raised by Shri Arvind Dharampuri, seeking clarity on the volume of company incorporations, processing timelines, and the number of registered non-profit entities under Section 8.

The response from the Minister of State for Corporate Affairs, Shri Harsh Malhotra, highlighted significant trends and processes within the ministry’s incorporation framework.

Company Incorporations: Year-wise Overview

The MCA shared data on companies registered through Spice+ Form A for the past four financial years:

The data indicates a steady growth in company incorporations, with FY 2023-24 showing the highest numbers at 1,85,318.

Timelines for Approval under Spice+ Form A

Shri Malhotra also addressed the question regarding the stipulated timelines for approvals. The Central Registration Centre (CRC), operational since January 2016, facilitates the speedy processing of incorporation applications. This initiative is part of the government’s efforts to enhance Ease of Doing Business (EoDB) by ensuring faster approval times and consistent rule application.

• Applications submitted via Spice+ Form A are reviewed and processed within set timelines, reducing delays for businesses seeking incorporation.
• The CRC employs technology and streamlined workflows to improve efficiency, aligning with global standards.

Section 8 Companies: Non-Profit Organizations

The MCA also provided figures for companies registered under Section 8 of the Companies Act, which governs non-profit organizations:

Section 8 companies are critical in areas like education, healthcare, and social welfare. The data shows a notable increase in registrations for FY 2023-24, indicating growing interest in establishing non-profit entities.

Ease of Doing Business: Central Registration Centre

The establishment of the Central Registration Centre marks a key development in India’s corporate regulatory framework. Key highlights include:

1. Faster Processing: Reduced incorporation timelines to match global standards.
2. Standardized Procedures: Ensures uniformity in rule application, minimizing discrepancies.
3. Enhanced Transparency: Use of technology ensures a seamless application process for stakeholders.

The initiative reflects the government’s commitment to promoting entrepreneurship and fostering a business-friendly environment.

Conclusion

The data presented by the Ministry of Corporate Affairs underscores significant progress in company incorporations in India. The Spice+ Form A system and the operational efficiency of the Central Registration Centre have streamlined the process, boosting the Ease of Doing Business.

Additionally, the steady registration of Section 8 companies highlights the growing role of non-profit organizations in addressing socio-economic challenges. The government’s focus on regulatory improvements and technological integration continues to facilitate a robust corporate framework.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 05
ANSWERED ON MONDAY, NOVEMBER 25, 2024

Companies Registered under Spice+ Form A

QUESTION

5. SHRI ARVIND DHARAMPURI

Will the Minister of CORPORATE AFFAIRS
be pleased to state:

(a) the number of companies registered under Spice+ Form A of the Ministry of Corporate Affairs;

(b) whether there is any stipulated window within which the Government plans to issue approval for the incorporation of the company and if so, the details thereof; and

(c) the list of the total number of companies registered as Section 8 company i.e. non­profit company under the MCA Act, 1956?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; MINISTER OF STATE

IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

[SHRI HARSH MALHOTRA]

(a): The number of companies registered during the following Financial Years are as under:

(b): The Central Registration Centre (CRC) was operationalised in January 2016 to provide speedy incorporation related services in line with global best practices. This initiative has provided greater Ease of Doing Business (EoDB) to the stakeholders and has resulted in faster processing of incorporation related applications and uniformity in the application of rules.

(c) : The number of companies registered as Section 8 company during the following Financial Years are as under: