incorporation

MCA amends the Companies (Incorporation) Rules by bringing in faster incorporation of companies in India. Salient features are as under:

• Date of notification was on 6^th February, 2020.
• The said notification is issued by MCA with a view to amend the prior rules with respect to incorporation of a company.
• The new rules shall be called as Companies (Incorporation) Amendment Rules, 2020.
• And it will come into force with effect from the 15^th February, 2020 which means that as of now the prior rules is still in effect i.e. Companies (Incorporation) Rules, 2014.
• The main reason behind the new amendment rules is to reduce procedures, time and as well as cost for all the new company incorporations with effect from the 15^th February, 2020.
• MCA has taken a new initiative in ease of doing business by introducing new E-Forms for incorporation of all new companies i.e. Form SPICE+ and Form AGILE PRO.
• Form SPICE+ will offer multiple services which is divided into 2 parts such as Part A for name reservation for new company and Part B as given below:
  • Incorporation
  • DIN allotment
  • Mandatory issue of PAN
  • Mandatory issue of TAN
  • Mandatory issue of EPFO registration
  • Mandatory issue of ESIC registration
  • Mandatory issue of Profession Tax registration (Maharashtra)
  • Mandatory opening of Bank Account for the Company and
  • Allotment of GSTIN (if required)
• As per the Companies (Incorporation) Amendment Rules the Rule 9 of Companies (Incorporation) Rules, 2014 is also been amended which states that for reservation of name or change of name an application shall be made at the official site of MCA by using web service under SPICE+ and in case of change of name then by using web service under RUN along with the fees as provided in the Companies (Registration Offices and Fees) Rules, 20014.
• It is to be noted that it shall be the discretion of the Registrar or Central Registration Centre for accepting or rejecting the application made as above. In case any defects arises in the application made as above then the same need to be rectified within 15 days.
• In rule 10, 12, sub rule (1) of rule 19, sub rules (1), (2), (3), (4), (7), and (9) of rule 38 of prior rules wherever the words, letters, figures and bracket “Form No INC-32 (SPICE)” is appeared the words “Form No. INC-32 (SPICE+) shall be replaced with effect from the 15^th February, 2020.
• Also the rule 38 of prior rules has been amended and states that in the marginal heading, for the words, brackets and letters “Electronically (SPICE)” the words “Electronically Plus (SPICE+)” shall be replaced.
• There has been a change made in rule 38A of prior rules which is relating to Form AGILE which will be known as AGILE PRO and also after clause (c) the new clause has been added i.e. clause (c) which is for Profession Tax Registration with effect from the 15^Th February, 2020 and clause (d) which is for Opening of Bank Account with effect from 15^th February, 2020.
• New E –Forms has been replaced by prior forms i.e. in case of Form RUN, Form INC-32 (SPICE) and Form INC-35 (AGILE) the Form INC-32 (SPICE+) and Form INC-35 (AGILE PRO) has been substituted which will offered multiple services and it will results into cost cutting and time saving as compared to prior E-Forms.
• E-Form INC-9 is also been replaced by E-Form known as RUN which will be used for the purpose of change of name only as of now.
• Form No INC-33 is also been amended whereby the letters, words and brackets “MOA language 0 English 0 Hindi SRN for (RUN)” shall be deleted.
• Also relatedly amendment is also made in Form No INC-34 where the letters, words and brackets “AOA language 0 English 0 Hindi SRN for (RUN)” shall be deleted.
• Lastly in Form No URC-1 the words and letters “Form language 0 English 0 Hindi SRN of RUN” shall be deleted.