If your company came into existence on or after February 23, 2020, there’s a new addition for getting your name and incorporation sorted which is the SPICe+ form. With SPICe+ and by completing through Parts A and B of the SPICe+ form, the company registration process has been more simplified by the Ministry of Corporate Affairs, for the purpose of fast-track registration of companies.
Importance of SPICe+ Form
SPICe+ stands out as a pivotal initiative introduced by the Government of India to enhance the ease of doing business within the country. Numerous entrepreneurs have experienced substantial advantages through the streamlined and uncomplicated incorporation process facilitated by this innovative initiative.
Functioning as a comprehensive web form, SPICe+ represents an upgraded and integrated iteration of its predecessor, the SPICe form (e-form INC-32). This advanced webform consolidates 11 services from three key entities—namely, the Ministry of Corporate Affairs, the Ministry of Labour, and the Department of Revenue in the Ministry of Finance. Additionally, it incorporates services from three state governments, specifically Maharashtra, Karnataka, and West Bengal.
A noteworthy achievement of SPICe+ is its significant contribution to minimising the complexity and duration associated with commencing a business in India. By consolidating services from various government departments and streamlining the incorporation process, SPICe+ has played a pivotal role in reducing the number of procedures, time, and costs entailed in starting a business in the country.
Services Provided in PART – A of SPICe+ Form
The initial segment of the SPICe+ form, known as Part A, serves as the platform for entering all details related to the reservation of a new company’s name. This section can be independently submitted for the sole purpose of name reservation, or it can be concurrently submitted with Part B of the SPICe+ for name reservation, incorporation, and additional integrated services.
Services Offered in PART B of the SPICe+ Form
Part B of the SPICe+ Form encompasses the following services:
1. Incorporation: Facilitating the process of incorporating the new company.
2. DIN Allotment: Allocation of Director Identification Number.
3. Mandatory Issue of PAN: Compulsory issuance of Permanent Account Number.
4. Mandatory Issue of TAN: Compulsory issuance of Tax Deduction and Collection Account Number.
5. Mandatory Issue of EPFO Registration: Compulsory provision of Employees’ Provident Fund Organisation registration.
6. Mandatory Issue of ESIC Registration: Compulsory issuance of Employees’ State Insurance Corporation registration.
7. Mandatory Issue of Profession Tax Registration: Applicable only for companies to be registered in Maharashtra, Karnataka, and West Bengal.
8. Mandatory Opening of Bank Accounts for the Company: Facilitating the necessary steps for opening company bank accounts.
9. Optional Allotment of GSTIN: Providing the option for Goods and Services Tax Identification Number allotment.
10. Allotment of Shops and Establishment Registration Number: Relevant only for companies registered in Delhi.
Key Features of SPICe+
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) represents a ground breaking initiative introduced by the Ministry of Corporate Affairs in India, aimed at revolutionising the process of company formation by enhancing speed and efficiency.
1. Comprehensive Service Set: SPICe+ offers a comprehensive suite of 10 services designed to facilitate the entire company incorporation process.
2. Two-Part Structure: The form is structured into two distinct parts, namely Part A and Part B, each serving specific functions to streamline the overall process.
3. Part A – Name Reservation: Part A of the form is dedicated to name reservation, allowing individuals to secure a name for their upcoming company. This initial step ensures that the desired company name is reserved before proceeding with the complete incorporation process.
4. Part B – Nine Essential Services: Part B encompasses the remaining nine services critical to the company formation process. These services include company incorporation, allocation of Director Identification Number, issuance of Company Permanent Account Number, registration with the Employees’ Provident Fund Organisation, Tax Deduction and Collection Account Number allocation, Employees’ State Insurance Corporation registration, Professional Tax Registration (relevant in Maharashtra), setting up a company bank account, and obtaining a Goods and Services Tax Identification Number.
5. Efficiency for Entrepreneurs: The clear bifurcation of services between Part A and Part B simplifies the process for entrepreneurs and businesses, allowing them to efficiently navigate and avail themselves of the necessary services for company registration.
Essential Details for Company Formation in SPICe+
The essentials included in the Spice+ include:
1. Director Identification Number: All directors, current and proposed, are required to have a DIN. If not already obtained, application for DIN can be made through the SPICe+ form.
2. Digital Signature Certificate: Signatories must possess a valid DSC for electronically filing forms in the incorporation process.
3. Name Reservation: Before initiating the incorporation procedure, apply for name availability. Provide a list of at least one and up to six preferred names in order of priority.
4. Registered Office Address: Furnish details of the company’s registered office, along with supporting documentation such as proof of ownership or a lease agreement.
5. Subscriber Sheet: This document includes details of the subscribers, encompassing their names, addresses, occupations, and shareholdings.
6. Memorandum of Association: Clearly outline the company’s objectives and activities in accordance with the provisions of the Companies Act, 2013.
7. Articles of Association: Define the company’s internal regulations, rules, and procedures through the Articles of Association, ensuring compliance with the Companies Act, 2013.
By providing these essential details in the SPICe+, the company can initiate the incorporation process and ensure adherence to legal requirements for a smooth and compliant establishment.
Attachments Required in SPICe+ Form
The attachments needed in Spice+ include:
1. Proof of Registered Office Address:
Lease agreement, rent receipts, or property ownership documents supporting the registered office address.
2. Subscriber Sheet:
Include consent, declarations, and identity proofs of subscribers in the attachment.
3. Director’s Details:
Attachments for each director should include PAN card, Aadhar card, recent photograph, and proof of identity and address.
4. DIN Declaration:
Verification of DIN by the respective directors should be attached as part of the submission.
5. AOA and MOA:
Attach the Articles of Association and Memorandum of Association with the SPICe+, outlining the company’s internal regulations and objectives.
Ensuring that these attachments are complete and accurate is crucial for the successful submission of the SPICe+ and the subsequent company formation process. These documents serve as essential evidence and compliance with legal requirements, contributing to the transparency and legitimacy of the incorporation process.
Procedure for Incorporating a Company through SPICe+
The procedure for company registration using Spice+ includes:
1. Name Reservation:
Initiate the process by applying for name availability through the RUN (Reserve Unique Name) facility.
2. Fill SPICe+ Form:
Complete the SPICe+ with all necessary details, ensuring accuracy and completeness. Attach the required documents as specified and make the necessary payments.
3. DSC Signatures:
Sign the completed form using Digital Signature Certificates to facilitate electronic filing.
4. Submission:
Electronically submit the duly filled SPICe+ form through the Ministry of Corporate Affairs portal.
5. Certificate of Incorporation:
Upon approval, the MCA will issue the Certificate of Incorporation, officially confirming the formation of your company.
The efficient process of SPICe+ has significantly simplified company incorporation in India. Entrepreneurs and businesses can benefit from this user-friendly system, allowing for a smoother and more accessible pathway to establish and formalise their companies. Understanding the various steps involved, from name reservation to receiving the Certificate of Incorporation, is crucial for a successful and hassle-free incorporation experience.
Final Thoughts
SPICe+ Form is a strong step for fast-tracking company registration in India. Its innovative approach streamlines the incorporation process, offering entrepreneurs a user-friendly platform to seamlessly navigate various essential services. With a two-part structure dividing name reservation and incorporation procedures, SPICe+ optimises efficiency. The inclusion of digital signatures, mandatory registrations, and simplified documentation requirements further accelerates the registration timeline. This initiative by the Ministry of Corporate Affairs signifies a vital leap towards fostering a business-friendly environment, significantly reducing procedural complexities. SPICe+ stands as a testament to India’s commitment to facilitating swift and accessible company registration, empowering businesses to embark on their entrepreneurial journey with expediency and ease.
