All about SPICE and new SPICE+Form

What is SPICe?

SPICe is the abbreviation for Simplified Performa for Incorporating Company Electronically. This is the form which was introduced in the year 2016 for ease of forming and incorporating companies under the Companies Act, 2013. It had a great positive impact as the duration and complexity of formation and incorporation of companies reduced largely. Multiple forms (were combined and brought together in one single form and it eased the long process of company incorporation. All companies formed under Companies Act, 2013 could apply through this form.

Introduction of new Form SPICE+

Ministry of Corporate Affairs, in the recent notification announced the introduction of new form, under the Ease of Doing Business (EODB) initiative, which shall replace the existing SPICe form. This form will be known as SPICe Plus (SPICe+) form. The new SPICe+ form will be even more helpful and time saving. This form will also bring some changes in the RUN (Reserve Unique Name) service. Government of India, Ministry of Corporate Affairs has published a new notification in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i) on 6^th February, 2020. This notification has been published by the Central Government in exercise of the powers given under section 469 of Companies Act. Government published new rules which shall be called Companies (Incorporation) Amendment Rules, 2020 and shall come into force w.e.f. 15^th February, 2020.

Form SPICe+ (SPICe Plus) – A Single Application Helps in:

• Name reservation
• Incorporation of a new company
• Applying for DIN allotment]
• Profession Tax (Maharashtra)
• Bank Account Opening
• TAN
• EPFO
• ESIC
• GSTIN

Major Updates and Changes

• The rule states that the name application for newly incorporated companies shall be done through SPICe+ Form (INC-32) and the RUN facility will be provided for change of name only from 15^th February 2020.
• The INC-32 SPICe form will be replaced with SPICe+ INC-32 form from 15^th February 2020.
• The SPICe+ form has been introduced as part Government of India’s Ease of Doing Business (EODB) initiative.
• The AGILE form is replaced with AGILE-PRO form through which the company can apply for GSTIN/EPFO/ESIC/Bank Account opening at the time of filing the SPICe+ Form.
• The SPICe+ form is divided into two parts i.e. Part A – For Name Approval Application and Part B – Other Incorporation Services. RUN service will no longer be available for name approval application from 15^th February, 2020 and will only be available for change of name. Resubmission for name will be done through Part A of SPICe+ form.
• Information in the new SPICe+ form can be saved and modified even after affixing DSC and the registration of EPFO and ESIC will be mandatory for companies incorporated on or after 15^th February, 2020. These companies will also be required to open bank account through AGILE-PRO which will be linked with SPICe+ form.
• In case the total numbers of subscribers are less than 20 and have DIN or PAN the declaration of INC-9 will be auto generated and will be submitted electronically in PDF format.

Conclusion

The new SPICe+ form provides even more services in a single form than the previous SPICe form. This might result in increase in company formations and lesser difficulties along with better compliance. The Ministry has taken a prudent decision and this can result in even quicker company incorporations.