The Ministry of Corporate Affairs (MCA) under the supervision and enthusiastic support of the honorable prime minister Shri Narendra Modi are taking drastic steps in an attempt to simplify the process of running a business in India with their campaign: Ease of Doing Business in India. The newest addition to this campaign is One Day company incorporation with reforms to the SPICe ( Simplified Performa for Incorporating Company electronically ) INC-32 forms in an attempt to speed up the process of company registration so you can start your business dealings as soon as possible.
Prior to the introduction of SPICe forms, the government had the INC-29 forms in place to streamline the process of company registration which, however, still came with heavy involvement of Registrar of Companies. Approvals from the registrar and meeting compliance requirements of the registrar for name reservation caused delays in the process causing distress amongst professionals since many a time all incorporation documentation had to be redone.
This process was rectified in March 2016 restoring order in the process with the incorporation of the Central Registration Center (CRC) iresult.m in 2016, March as a result.
This step of One Day company incorporation comes with streamlining the following processes with the new and reformed SPICe forms :
- Obtaining DIN (Director Identification Number )
- Name Reservation
- PAN Application
- TAN Number
INC-32 makes one-day company incorporation a very real possibility
The actual time investment required with new SPICe INC-32 forms
- 1 Day- Document Preparation
- 1 Day- Signing Documents
- 1-2 Days- DSC Processing (Digital Signature Certificate with declaration is required to file INC-32)
- 1 Day – Incorporation Processing.
Therefore accounting for all the formalities, document gathering, the total time for incorporating a company will take 4-5 working days.
Document Checklist for filing SPICe ( INC-32)
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Declaration and Affidavit by directors and first subscribers
- Proof of Office Address
- Utilities Bills’ Copy not more than 2 months old (Electricity, Gas, Water Bills etc.)
- Copy of approval if the proposed name is containing words/expressions which need authorization by the Central government
- In case of proposed name based upon a registered trademark then it is mandatory to attach trademark registration certificate or trademark application copy
- NOC from sole proprietors partners /associates/ existing company
- Proof of identity and residential address of subscribers.
- Proof of identity and residential address of directors.
Disadvantages of the new SPICe (INC-32) One Day Company Incorporation
In case of disapproval of the proposed name of the company, documentation has to be re-done.
Advantages of new SPICe (INC-32) One Day Company Incorporation
For aspiring entrepreneurs choosing to start a company with a very unique name, the process becomes very precise, streamlined and rapid therefore allowing faster processing.
Thus, the new SPICe forms will help quicken the process of one-day company incorporation. The new processing forms will help professionals get through the procedure swiftly, therefore, helping them focus towards expanding their business.
Get in touch with our team at LegalRaasta, where we help you make informed decisions about the path your company wishes to take in the future whether as a Private Limited Company or any other type of company.
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