Spice+ is a new initiative taken by the Government. Every year Government brings some or the other change in the procedure to Incorporate a Company. With effect from 23rd Feb, 2020 The Government came up with the new Form called Spice+ which is a web-based form.
Let us understand the details of the new form and the new incorporation process for company.
Features of the new form
This form is segregated into two parts:
Part A: Name application
Your name can be reserved by just filling in Part A and submitting it online.
Part B: Procedure for incorporation
√ User has the flexibility to apply for Part A & Part B together. He should do that only when he is sure of the name availability for which he has applied. If he is unsure, he must apply for Part A separately, get the name approval and then go ahead with the process of incorporation.
√ Once the name applied in Part A gets approved, the details automatically gets prefilled in Part B in all the linked forms
√ AGILE-PRO, SPICe+ MOA, SPICe+ AOA, URC-1 (applicable in the case of conversion) INC-9 (as per applicability).
√ Initially, where we used to get the signed copy of the directors and subscribers in Form INC-9, in the new process it is done away with. As per the details filled, INC-9 automatically gets generated and now the form has to be signed electronically with Digital signature.
√ All the above process happens on the web-based form only. You can edit the web-based Spice+ form only 5 times. Post that, you will have to prepare a new form only. So be careful.
√ Companies have to apply for the bank account also through this form only.
√ You also have to take mandatory registrations like EPFO, ESIC, Professional tax through this form only.
√ All the mandatory attachments like Companies address, Directors KYC like PAN Card and aadhar card are to be uploaded through this form only.
√ At the end after everything is done, pre scrutinise the form. Once it is successful, submit the form.
√ Post that, download the Spice+ Form, attach the DSC and all other forms linked to Spice.
What are the linked forms?
Spice+ MOA & AOA:
It is again web based form only, to be filled for the object clause of the company and the articles. This form is to be filed alongwith Spice+ form.
This form is prefilled on the basis of the information entered in Spice+. Attach the directors and subscriber DSC to this form.
Once all the documents are ready, user has to upload the Spice+ form along with the linked form. SRN will be generated. Then wait for ROC to approve the form.
Few Key points to be considered
Old RUN Form can now be used only if already an application for name is done and the name is approved through RUN.
If there is a change of name, then the company has to apply it in the RUN Form only.
Resubmission criteria is till the same as per the Spice 32 form. You get two chances for resubmission is there are any errors.
Mandatory applying for Bank account is something which the users may not like.
Mandatory application for ESIC should also be considered as there is a criteria on the number of employees and their salary as per the Labour Law. ESIC may not be applicable to a lot of startups who are at their initial stage of business.
Launch of Spice+ with a view to reduce the time, procedure and the cost is not served here as there have been lot of mandatory compliance which may even not be applicable to the company.