How ease of doing business changed entire formalities and consolidated the process of formation of a company in India. There are a lot of changes, which has been noted post the enactment of the Companies Act, 2013. The Corporate Governance and ease of compliance has been the first priority of the government in all these days. When we analyze the incorporation procedure and formalities, we found it amazing and noticeable change in the sake of ease of e- compliance. We can compare the progressive change, which are as follows:
E forms for Incorporation of Company:
How it changed post 26th January, 2018 these were removed by the Ministry of Corporate Affairs.
a. Form INC-1-Name Approval
b. Form DIR-3-Director Identification Number
c. Form INC-7-Incorporation of Company
d. Form INC-29-Integrated Incorporation process
e. Form DIR-12-Appointment of Directors (Exists but not required for incorporation)
f. INC-22-Registered office of the Company (If there is two addresses one is as Registered office then only it would be required)
Other amendments have been made since 01.04.2014 to till date:-
√ No requirement of minimum Paid up Share Capital.
√ No requirement of DIN before Incorporation of Company.
√ No need to file separate form for appointment of first Directors.
√ No need to file separate form for address of registered office.
√ No need to file separate form for PAN & TAN.
√ Exemption from ROC fees for incorporation of Company
√ Facilities of E-MOA and E-AOA.
√ Only one form for incorporation of Company
INCORPORATION OF COMPANY:
STEP 1:– Application for name approval-New process of Name Approval “RUN”
Details required to be filled– Applicants have to login into their account on MCA website. (Pro-existing users can use earlier account or new users have to create a new account).
After login: applicant has to click on the icon “RUN” in MCA Services. An online form shall be open. Applicants have to fill the information online. (This form can’t be downloaded).
DSC and DIN is not required for filing of “RUN” form for Reservation of name.
Details required while filing form “RUN”
a. Entity type to be choose (i.e. Part 1, OPC, Section 8)
b. CIN (Corporate Identification Number) has to be entered only when an existing Company wishes to change its name and is using RUN to reserve a new name.
c. Option of Proposed name as auto check facility. Only one name can be mentioned in “RUN” form.
d. Under Comment icon, mention objects of the proposed Company.
e. Choose file (if any attachments required).
1. Submission of Form– Applicants shall submit the form “RUN” with MCA website. As per Register Office Fees Rules, Fees shall be Rs. 1000/-.
2. Payment of Fees-There is no option of pay later challan in “RUN”. Applicant has to pay fees immediately after submission of form. No resubmission of application is allowed in case of reservation of name. The application gets either Approved or Rejected.
3. Validation of Reserved Name- Reservation of name shall be valid for 20 days from the date of approval of name.
STEP 2:- Application for DSC (Digital Signature Certificate)–
DSC is mandatory for at least 1 Director. However all subscribers of the Company (Pvt. Ltd.) is required to have DSC while filing of Form INC-33 (SPICE MOA) and INC-34 (SPICE AOA). For applying DSC of Director and Subscribers PAN is mandatory.
STEP 3:– Preparation of documents for incorporation of Company-
After approval of name for incorporation of Company applicants have to prepare the following below mentioned documents:-
a. Affidavit and declaration by First subscriber(s) and Directors on duly authorized Stamp Papers.
b. INC-9 (on duly authorized Stamp Papers).
c. DIR-2, declaration from Directors along with copy of proof of identity and residential address.
d. NOC from owner of property if office is rented.
e. Proof of office addresses (Conveyance, Lease Deed, Rent Agreement).
f. Copy of utility bill (not older than 2 months).
STEP 4:– Incorporation of Company electronically–
Filing of Form INC-32 (SPICE) for incorporation of Company. This form is simplified Performa for incorporating Company Electronically.
Features of Form INC-32 (SPICE):-
a. Maximum details of subscribers are seven. In case of more subscribers, physically signed MOA and AOA shall be attached with form.
b. Maximum details of directors are twenty.
c. Maximum three directors are allowed for filing application of allotment of DIN while incorporating Company.
d. Applying for PAN and TAN will be compulsory for all fresh incorporation application filed.
e. In case of Companies incorporated, with effect from 26th January, 2018 with nominal capital of less than or equal to 10 Lakh, fee for INC-32 (SPICE) shall not applicable.
Step 5:- Preparation of MOA and AOA-
After proper filing of SPICE form applicant has to download the e-form INC-33 (MOA) and INC-34 (AOA) from the MCA portal. Fill all information in forms as per requirement of TABLE A to J of Schedule I.
Step 6:- Submission of Form INC-32 (SPICE), INC-33 (MOA) and INC-34 (AOA)-
Applicants shall upload all 3 documents as linked form on MCA website and make the payment for same.
Step 7:– Certificate of Incorporation–
Incorporation Certificate generated by MCA shall contain CIN, PAN and TAN with it.
DISCLAIMER: This information is an opinion on the subject and users of this information are expected to refer to the relevant existing provisions of applicable laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. Myself and Monisha Meghna (Co- Author) would not be held responsible for the act based on the information provided as above.