Now company formation made easy with SPICe!

3 Oct 2019 Read 163 Views

As a young Entrepreneur, when you think about a Startup, you think about a Private limited company. Might be forming your own company seems to be Overwhelming but Finology made it easy. Incorporating your own company gives the Members- Limited Liability Benefit that means it will allow their members full exemptions from business debt & obligations.

Along with it, forming a company gives Tax Benefits too. For individuals the Tax rate is 30% whereas for companies it is 25% upto Gross Turnover of 250 crores. So if you are Thinking of Large Scale Business, convert it into a Pvt. Ltd. Company with the help of SPICe i.e., Simplified Proforma for Incorporating a Company electronically. Here we will learn “How to apply for Incorporation of Company through eForm- SPICe”. We are happy to help you!

Topics to be covered here :

  1. What is SPICe?
  2. For what purpose do SPICe form is introduced?
  3. Types of company to be incorporated with SPICe-(INC 32) form.
  4. Mandatory documents required.
  5. Signatures& Declaration required.
  6. Fees details in SPICe (INC-32) form.
  7. Process for filling SPICe.
What is SPICe

The Ministry of Corporate Affairs (MCA) has introduced a new, single & simplified form for incorporation of companies. It is an electronic form designed by MCA with the aim to substantially reduce the Time Taken for Registration for companies. This has been a favor to Businessmen and Global Entrepreneurs who can quickly take their business to a corporate level.

For what purpose do SPICe form is introduced

SPICe form can serve number of facilities in a single application like:

  1. Reservation of Name of the company.
  2. Incorporation of a company.
  3. Application for allotment of DIN (Director Identification Number).
  4. Application for PAN/TAN.
Types of company to be incorporated with SPICe-(INC 32) form

Following type of companies can be formed with SPICe-(INC 32) form:-

  1. Section 8 Company.
  2. Producer Company.
  3. Nidhi Company.
  4. Part-1 Company.
  5. New Company (others).

Mandatory documents required

This eForm is accompanied by supporting documents including details of Directors & Subscribers, MoA & AoA. Once the form is processed & found complete, Company would be Registered and CIN (Corporate Identity Number) would be allotted.

Following documents are required to be attached:

  1. Memorandum of Association.
  2. Articles of Association.
  3. Declaration by the first subscriber(s) & Director(s).
  4. Proof of office address.
  5. Copies of utility bills (not older than 2 months).

Signatures & Declaration required

Formation of Company require signature and declaration of the following person:

  1. Director (a person named in the articles as a director of the company) is require to declare that all the matters precedent or incidental thereto have been complied with a Digital Signature of himself.
  2. Digital Signature of a Professional (Chartered Accountant/ Company Secretary/ Cost Accountant/ Advocate) is required to file Form INC-32 along with a declaration that all information presented in the form is correct and enter his/her membership number and certificate number.

If the mentioned matters will be complied with and the information given will be true in the view of authorizing officer, then he may approve the form by Providing his Digital Signature authorizing the document.

Fees details in SPICe (INC-32) form

Fee liable to be paid along with the SPICe for may be classified as follows:

  1. Fee for Integrated Incorporation Form
     
      1. In case of company having Share Capital

                                          

  1. Filling fees for URC-1 (if applicable)

Shall be charged as per the form fee prescribed for URC-1.

  1. Stamp duty as applicable for SPICe / MoA /AoA

State wise stamp duty shall be charged as per Stamp Duty Act.

Process for filling SPICe.

  1. The First field requires for the approval for the name of the company being received from ROC (Registrar of Companies).

     
  2. If approval is already received by the ROC, provide SRN of RUN (Reserve Unique Name). On filing the SRN, entity type will get filed automatically.
     
  3. Field [1(a to f)]: Details of the Type of the company shall be selected from the options below:The class, category and sub-category of the company should be selected from the options provided. Then select whether the company is aIFSC company or not.
    Then you are required to choose whether to form company with share capital or without share capital.

     
  4. Field [2(a & b)]: Provide the main division of industrial activity of the company and provide a brief description about the main division. Select “YES” if Articles of Association is entrenched otherwise “NO”. Please ensure it shall be same with AoA attached.

     
  5. Field[4(a to c)]: Provide the Correspondence address which shall be the mailing address of the company unless the company has its registered office. Choose whether Correspondence address of company will be equal to Address of Registered Office of the company. The name of the office of ROC shall be selected on the basis of the state mentioned in the correspondence address.

     
  6. Field[5(a)]: Enter the particulars for Proposed or Approved name of the company.
  7. Field[6(a)]:
  8. First Row: The total number of first subscribers has to be entered based on which the blocks to enter the name and the DIN will appear. Other than non-individual subscribers each category of subscribers are divided into two classes- with DIN & without DIN.

    Second Row: The number of non-individual first subscribers have to be entered based on which blocks will be generated for entering the particulars[Field 6(b)].

    Third Row: The number of individual first subscribers cum directors shall be entered. The block for filing the particulars will be generated.

    Fourth Row: The total number of proposed directors should be entered which shall include the subscribers who are proposed to be the directors.

  9. Field[8(a&b)]: State or UT in respect of which stamp duty is paid will get automatically filled based on the address given. The mode of payment for Stamp Duty shall be selected as per your comfort. The option “NO” can only be selected only when the Particular state/UT doesn’t require for it.
    Field [9]: Provide information relating to PAN & TAN. The source of Income shall be selected if application is made through e-biz services.  

  10. Field [10]: Fill the Type, Nature &sub category of ESIC if application is made through e-biz services.


     
  11. Field [11 to 15]: Fill the required details as per your Information.

     
  12. MoA, AoA and Declaration by first subscriber & Director have to be attached with the form.

     

The declaration section shall consist of a declaration to be made by authorized director affirming the requirements of the Companies Act, 2013 have been complied with. A professional in the capacity of Chartered Accountant/ Company Secretary/ Cost Accountant/ Advocate should digitally sign the form and also mention his membership number or certificate number.

14) The eForm should be digitally signed by the proposed director and he/she shall mention the DIN/PAN number.

15) Pay the applicable fees as required.

Conclusion:

SPICe Is a new initiative taken by MCA for fulfilling the dream of India to take Indian Businesses to an unlimited height. It will help Indian Entrepreneurs & Businessmen to take their business into a large scale. According to a survey, Indian businesses have the second most optimistic outlook after Indonesia, as almost 9/10 i.e., 89%. Indian firm expects to grow more than Indonesia in just 2 years. Also, Corporate in India have an immense role in the growth of Indian economy. There is further potential in Indian Markets to grow. ”SPICe” Form is contributing towards easy Incorporation of company which will give a boost to the Indian businesses.

-Ayush Jain

About the Author: Chandni Agrawal | 91 Posts

Chandni holds a degree in business administration and possess flair for content. Her favorite pass-time, hobby and sometimes even priority is sleeping. She is a smart professional who facilitates seamless coordination during hectic work schedule. 

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