ALL ABOUT SPICE i.e Simplified Proforma for Incorporating Company Electronically
New Company Registration procedure
The Ministry of Company Affairs has always endeavored to reduce the burden of company registration and make it more simplified. In this effort, MCA has earlier came out with fast track process of business registration by introducing form INC-29.
Now, in October 2016, Ministry of Company Affairs came up with a new procedure for company registration under Companies Act and introduced form INC32, INC 33 and INC 34 under SPICE scheme. It means Simplified Proforma for Incorporating Company Electronically.
Some of the important features of new procedure under SPICE are as under:
- For company registration, now pre-drafted MOA and AOA has been introduced via forms INC 33 (for MOA) and INC 34 (for AOA). This reduces the time and workload of professionals. Now both MOA and AOA will be filed in automatic mode. This is the new feature introduced by MCA.
- Under the new scheme, all types of companies covered. i.e. it will include private limited company, public limited company, OPC, Section 8 Company registration and Producer company registration
- Minimum authorized and paid up share capital for private limited company registration is Rs 2, for OPC is Re 1 and for the public limited company, registration is Rs 7.
- Total no. of the first subscriber are restricted to 7 and also no. of maximum Directors under this scheme can be 3. In the case of more directors, we have to follow standard company registration procedure.
- This scheme can also avail in the case name approval has already been done by filing form INC 1. This was not permissible under earlier form INC29. Here we need to SRN of INC-1 already filed.
- Both options are available with the companies i.e. either to register the company by SPICE or follow earlier company registration procedure i.e. INC-1, INC-7, DIR-12, and INC-22.
- Under the new scheme, Director has to declare that proposed name is not already available and he has checked the name on MCA website and Trade Mark Website.
- Under SPICE, only one name can apply for approval. Therefore, proper due caution shall be exercised to avoid rejection.
- Also, here 3 resubmissions are only allowed, i.e., you cannot resubmit many no. of times as provided in standard procedure.
- In this scheme, even the witness is required to have Digital Signature. In case, he does not have a digital signature, then, in that case, normal registration procedure shall be followed.
Therefore, in case no. of subscribers are less than 7, and no. of Directors are less than 3, new company registration procedure under SPICE should be preferred to reduce the time consumed in company incorporation and make it hassle free.