Over the past two years, the Ministry of Corporate Affairs has taken many steps to increase the pace of company registration. In a notification dated October 1 2016, it put forth the Fourth Amendment Rules, 2016, launching new e-forms that promise to significantly speed up the company registration process.
SPICE – or Simplified Proforma for Incorporating Company Electronically – simplifies the company incorporation process through a new online application form, INC-32, in addition to online application forms for Memorandum of Association (form INC-33) and Articles of Association (INC-34).
What it Means
Apart from simplifying the procedure further (as compared to the earlier e-form INC-29), one can also fill a pre-drafted Memorandum and Article of Association online. This makes it a completely hassle-free company registration process.
Changes Introduced by MCA
Prior to May 2015, the incorporation of a company required one to fill up several documents, such as the DIR-3 for acquiring the Director Identification Number, INC-1 for obtaining name approval, INC-7 for registering a company with the Memorandum and Articles of Association and INC-22 for approval of registered office.
However, starting from May 1 2015, the Ministry of Corporate Affairs brought forward the INC-29 form for incorporation of companies. This form included all the details to be filled in the five forms. Also, the process of getting an approval was reduced to as little as 48 hours.
With the SPICE initiative, and the introduction of INC-32, the approval time should be much shorter. This is because the new system facilitates the filing of Memorandum and Article of Association electronically.
Salient Features of SPICE
1. INC-32 can be filed even if you have applied for the name of the company through INC-1already. This is a major difference between INC-29 and the new E-form.
2. As stated earlier, the major breakthrough is the fact that SPICE provides e-filing of MOA and AOA through forms INC-33 and INC-34. The MOA can be copy pasted from your file and the AOA can be pre-drafted against the clauses given in the form INC-34. The whole process has been completely simplified.
3. Since MOA and AOA are to be filed digitally, the signatures of directors (digital signatures) can be affixed with INC-33 and INC-34.