As per the Economic Survey 2019-20- “India has moved up 79 positions in the World Bank’s Doing Business Ranking improving from 142 in 2014 to 63 in 2019, with the country improving on 7 out of the 10 parameters”. One of the main reasons for this progress being reduction in time taken for incorporating a business entity in India and setting up operations. In continuation to this, the Government has proposed a new web form named SPICe Plus replacing the existing forms for incorporating a Company.
SPICe Plus Form (SPICe +)
The Spice plus Form is a new web-based utility which is a replacement to the earlier Spice (Simplified Proforma for Incorporating Company Electronically) form which was a pdf version. It would be an integrated web form offering 10 services by three central government ministries and one state government. The form would be applicable from 15th February 2020 on the portal of Ministry of Corporate Affairs (MCA).
Features of SPICe + form and Agile Pro (INC-35)
- The new spice + form would have two parts – Part A- For Name reservation and PART B for incorporation and host of ancillary services as listed below. Users may submit both parts together or one after the other.
- Spice Plus form along with Agile Pro (INC-35) would be an integrated web form offering multiple services namely:
- Name reservation
- DIN allotment
- Issue of PAN and TAN
- Employees Provident Fund Organization (EPFO) Registration
- Employees State Insurance Corporation (ESIC) Registration
- Professional Tax Registration for the State of Maharashtra
- Opening of Bank Account
- Goods and Service Tax Registration
- Upon notification and deployment of this form, all name reservation for new companies and incorporations shall be applied through SPICe+ Only.
- The earlier web service for reserving name through RUN (Reserve Unqiue Name) would be discontinued and RUN would be applicable only to change the name of an existing Company.
- Declaration by all Subscribers and first Directors in INC-9 shall be auto-generated in pdf format and would have to be submitted only in electronic form in all cases, except where:
(i) Total number of subscribers and/or directors is greater than 20 and/or
(ii) Any such subscribers and/or directors has neither DIN nor PAN.
The launching of Spice Plus Form is a step in the right direction which would lead to a substantial reduction in time taken to setting up a business entity in India, in turn attracting a lot of investors in coming time period. The Spice Plus form would help in on-screen filing of data and its real-time validation for seamless registration making company incorporation a hassle free experience.
Nikita Bhatia is the co-founder of VenturEasy, an online platform for Company registration, book-keeping, accounting, tax consultancy and legal compliances in India. A Chartered Accountant and company secretary by profession, she has wide experience in the fields of audit, accountancy, taxation and corporate governance.
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