pri Incorporation of a private limited company (SPICE+) Incorporation of a private limited company (SPICE+)

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

  • Incorporation of Company
  • DIN Allotment
  • Mandatory opening of Bank Account
  • Mandatory issue of PAN and TAN
  • Mandatory issue of profession tax registration in the state of Maharashtra
  • Mandatory issue of EPFO and ESIC Registration
  • Optional GST Registration

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.

  • The details that would be required are the type of the company whether is private limited company, Public limited etc, Company limited by shares or guarantee, object clause of the company, industrial activity of the Company.
  • Once the details are filled in the web-based form, you can submit it online. You can give two names while filing the form. If you submit only Part A, then the fees for name approval are same like RUN Form which is Rs. 1000/-

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.

INC-9 Form:

This form is prefilled on the basis of the information entered in Spice+. Attach the directors and subscriber DSC to this form.

Agile Pro:

  • To get GSTN, ESIC, EPFO
  • For Professional Tax Registration Number only for Companies incorporated in the State of Maharashtra.
  • For Application for Company’s Bank Account Number

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.

My take:

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.

Author Bio

Qualification: CA in Practice
Company: Co-founder of Budding Business & Makwana Sweta & Associates
Location: Mumbai, Maharashtra, India
Member Since: 20 Aug 2017 | Total Posts: 62
A Practicing Chartered Accountant with over 4 years of rich experience in Company Law, Audits, Accounts & taxation. She is a writer at her own blog She is keen in streamlining business accounts of the Company and provide Startup consultancy. View Full Profile

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One Comment

  1. Peter William says:

    I have personally tried to incorporate a company during the third week of February 2020. It was really a tiresome process.I had applied for name in Spice PartA. Even though it was approved, I was not given access to part B because of technical issues so I had to wait for a week to get the technical team to work on it.
    Now partB is where things get really interesting. In agile pro there is a requirement to give details with regard to lease or place of business of the company. Since the company is new you have the option to select corresponding address rather than registered office address. Since my company is new I have not entered into a lease agreement so I was not able to give Lease requirements which is a mandatory field in agile pro. I had raised a query for which they have not yet given me a proper reply. The reply they gave was refer the instruction manual and do the filing.How can a company entered into a lease agreement unless the company is registered? This is pathetic. Thus My suggestion would be not to incorporate a company at this point of time.

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