Ministry of Corporate Affairs (MCA) has introduced the new form of SPICe (single day – single stage) Company Registration. SPICe, which remains for Simplified Per forma for Incorporating Company digitally. The new SPICe frame exploits of re-designing of the current procedure and foundation of Central Registration Centre to complete government handling of fuse utilization of an organization in a solitary day. Flavor coordinates the portion of Directors Identification Number (DIN), name endorsement, fuse declaration, Permanent Account Number (PAN), and Tax Deduction Account Number (TAN) designation under a solitary procedure, single shape. In this article, we will learn about the new SPICe form in detail.
INC-29 – A Precursor to SPICe
Preceding the presentation of SPICe, Form INC-29 was presented by the MCA in May 2015 to rearrange the procedure for consolidation of an organization in one stage. Under INC-29, the procedure for getting DIN, name endorsement and consolidation were streamlined into a solitary process. However, INC-29 was not without disadvantages and the endorsement for the frame was as yet given by the concerned Registrar of Companies, prompting delays. Further, since the INC-29 shape had name reservation and fuse joined in one stage if the name of the organization was dismissed by the Registrar of Companies, the consolidation archives must be revamped totally.
Consolidation under Central Registration Centre
In March 2016, the MCA presented the Central Registration Centre at Gurgaon, combining all name endorsement and joining preparing under one focus. With the union of all name endorsement and fuse application under one Center, the time taken for name endorsement, joining, and so on., was totally streamlined and the preparing time altogether diminished. The accompanying two outlines demonstrate the normal handling time with Central Registration Center, demonstrating the adequacy and productivity of the Central Registration Center. Besides, the solidification of the fuse and name endorsement under the Central Registration Center established the framework for the recently presented SPICe shape, conveying 5 unique strides in a single procedure.
SPICe with eMOA & eAOA
In October 2016, the MCA presents the first SPICe frame with the arrangements for recording eMOA and eMOA. While consolidating an organization, the readiness of Memorandum of Association and Articles of Association sets aside huge time for a Professional. To disentangle this and institutionalize the sanctions of all organizations enrolled in India, the SPICe shape with eMOA and eAOA was propelled.
After the presentation of SPICe, all the past structures for the fuse of an organization were additionally stopped, influencing SPICe to frame the main course for organization enrollment. The present SPICe shape anyway can be utilized just for the name, fuse, and PAN portion. It’s impractical to get DIN utilizing the SPICe frame. Thus, DIN and TAN applications must be independently made.
New SPICe Form – One Day Company Incorporation
In April 2017, the MCA has announced the following SPICe features on its website through an advertisement. The new SPICe form would combine the process for obtaining DIN, Name Reservation, Incorporation, PAN and TAN in a single step – fully consolidating the incorporation process of a company into one step. The new SPICe form integrates the process of getting DIN and TAN also into the same step, reducing the number of forms filed. Finally, the form also states that the incorporation fee would also be reduced from Rs.2000 to Rs.500.
Is One Day Company Registration Possible?
Truly and no, consolidation of an organization includes drafting and accommodation of different archives to the MCA. The Government has guaranteed to handle all SPICe frames inside multi-day and it is an honorable advance and will positively be satisfied by the Government at its Central Registration Centre as the Central Registration Center as of now gives fuse application preparing inside multi-day.
In any case, the quantity of report that must be submitted for the fuse of an organization are still genuinely broad and Digital Signature Certificate has to be obtained which effortlessly takes around 1 – 2 days much of the time. Under the new SPICe and eMOA, DSC is required for all Directors, Shareholders and the MOA/AOA witness.
Henceforth, regardless of whether a SPICe shape is utilized and if consolidation reports are drafted by an expert inside multi-day, it would take around 4 – 5 working days for the fuse of an organization. (1 Day for Document Preparation, 1 Day for Signing Documents, 1 Day for DSC Processing, and 1 Day for Incorporation Processing).
Drawbacks in Using SPICe
Like the INC-29 shape, SPICe additionally has a noteworthy downside in that if the name of the organization isn’t endorsed, at that point all the joining archives must be recently submitted. Considering that fuse record drafting and marking sets aside a heft of the ideal opportunity for a Professional in petitioning for consolidation, its prudent to acquire name endorsement and afterward present the fuse application.
Thus, until the point when the procedure for favoring name is more streamlined or organization name accessibility check is mechanized by the MCA, Professionals will keep on using the old type of joining, wherein DIN is gotten independently, at that point name endorsement and afterward consolidation application is recorded alongside PAN and TAN. Since DIN and name applications are as yet endorsed inside multi-day, most experts would esteem the confirmed name over the speed of fuse.
Advantages in Using SPICe
For Professionals / Entrepreneurs who choose to start a company with a very unique name, SPICe form would certainly be a major game-changer. If the Professional with certainty is able to file the SPICe form that the name is very unique, the majority of the steps of incorporation of a company would be combined, providing the Professional with a DIN, name approval, Incorporation Certificate, PAN and TAN in the same week.
Overview of Processes Combined under SPICe
Director Identification Number
Digital Signature Certificate (DSC) in the name of DIN applicant must be obtained prior to applying for DIN number. Digital Signature Certificate can be obtained through IndiaFilings. Digital Signature Certificates are issued in the form of a USB token with a validity of one or two years.
DIN numbers do not have an expiry date and no further compliance formalities are required for maintaining the validity of a DIN number.DIN numbers are allotted by the way of intimation through DIN allotment letter and no other documents are issued.
Name reservation must be made to the MCA. If the proposed name of the company is accepted, a name reservation is provided to the application for a period of 60 days. To obtain a name reservation, a minimum of two DIN is required.
The advantages of using the traditional name reservation methodology are that at any time, up to 6 names can be submitted for MCA perusal. If any of the names are not available, the next suggested name is checked by the MCA officer. Along with resubmission, a total of up to 18 names can be checked while applying for name reservation before rejection of the form by the MCA.
The company is incorporated if there are no defects in the incorporation documents and the name is reserved for the applicant. If the name is not reserved, then the name is checked by the MCA officer. Under the new SPICe form, if the name is available, then incorporation is provided. It is not available, then the form is asked to be resubmitted. In the case of the resubmission, all the incorporation documents would have to be designed by the Directors/Shareholders, which could potentially take a long time.
On the company registration, PAN is already allotted automatically under the SPICe form and mentioned on the incorporation certificate. PAN card is later dispatched to the registered office address of the company.
TAN number is required for deducting tax at source. TAN application is usually made after obtaining PAN. Under the new SPICe form, TAN would be allocated along with the PAN. Allocating TAN with PAN would reduce another compliance-related registration a company has to obtain at a later date and ensure that all companies are ready to deduct & remit the tax collected at source from day one.