In this Flash editorial, the author shall discuss the “Incorporation of Company”, “Reservation of Name” and “Application for DIN” as per latest Amendments by Ministry of Corporate Affairs, Notification Dated: 20th January, 2018 effective w.e.f. 26th January, 2018. This is a Very Useful step in the way of “Ease of Doing Business”
Relevant Read- Latest MCA Notifications
Reservation of Name Process:
On 26.01.2018 MCA started a new services named Reserve Unique Name (RUN) for reserve name of New or Existing Company. Process and new provisions for reservation of name are as follow:
STEP – I: Login on MCA Website
Users 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 use have to click on the icon “RUN”.
“Reservation of Name: An application for reservation of name shall be made through the web service available at ww.mca.gov.in
STEP – II: Details required to be mentioned:
I. Entity type (i.e. Part I, OPC, Section 8 etc.)
II. CIN (In case of Change of Name, only for existing Company)
III. Proposed name (Auto Check Facility()
IV. Comment (Mention Objects of the proposed Company and any other relevant information Like Trade Mark etc.)
V. Choose File (Any attachment)
STEP – III: Submission of Form on MCA Website:
After completion of above steps user shall submit the Form with MCA website.
Note: * Important Information
I. Government Fees for Reservation of Name shall be Rs. 1,000/-
II. No Re submission option – No Re submission of application is allowed in case of reservation of Name. The application either Approve or Reject.
III. Reserved name shall be valid for 20 days in case of allotment of name for New Company.
IV. Reserved name shall be valid for 60 days in case of allotment of name for existing Company (Change of Name).
V. Optional Attachment maximum size 6 MB.
VI. Name application will be processed by CRC under NON STP mode.
VII. No need of DIN for reservation of Name
VIII. No need of Digital Signatures for Reservation of Name.
IX. Most Important: The same user Login ID which was used for reserving the name has to be used for submitting and uploading SPICE, INC 12 and INC 24 forms.
Incorporation of Company:
I. Incorporation Fees shall be NILin following cases:
NOTE: * The payment of Stamp Duty is governed by different state stamp law and will remain for now.
II. In case of incorporation of a company having more than 7 subscribers, MOA & AOA shall be filled with INC 32 in the respective format as specified in Table A to J in Schedule I without filing form INC 33 and INC 34. (Means Physical attachment of MOA & AOA in e-form INC 32)
III. In case of incorporation of a company where any of the subscribers of the MOA/AOA is signing at a place outside India, MOA & AOA shall be filled with INC 32 in the respective format as specified in Table A to J in Schedule I without filing form INC 33 and INC 34. (Means Physical attachment of MOA & AOA in e-form INC 32)
Director Identification Number (DIN):
The Allotment of Director Identification Number ( DIN) shall not be possible without a proposed appointment in the existing Company or in a Company proposed to be incorporated.
DIN – Incorporation of New Company:
I. DIN At the time of Incorporation Shall be apply only in SPICE Form.
II. DIN may be allotted to maximum 3 proposed Directors through SPICE.
DIN – Appointment in Existing Company
III. For allotment of DIN, Board Resolution proposing his appointment as director of an existing company” made a formal proposal of appointment in an existing company mandatory. (Effect: A person can be propose as Director without DIN)
IV. Form DIR-3 shall be signed and submitted electronically by the applicant using his or her own Digital signature certificate and
V. shall be verified digitally by a company secretary in full time employment of the company or by the managing director or director or CEO or CFO of the company in which the applicant is intended to be appointed as director in an existing company.”
Note: * No need of Certification of DIR-3 by Practicing CS or CA.
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. 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. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION.
(Author – CS Divesh Goyal, ACS is a Company Secretary in Practice from Delhi and can be contacted at email@example.com)