SPICe Form- Company Registration Procedure
A new version of SPICe is introduced by The Ministry of Corporate Affairs (MCA). Majorly for the purpose of Company Registration in India, and SPICe stands for Simplified Performa for Incorporating Company electronically. SPICe Company Registration procedure provides integration of the following:
- Allotment of Directors Identification Number (DIN)
- Name approval
- Incorporation certificate
- Permanent Account Number (PAN)
- Tax Deduction Account Number (TAN)
The process for obtaining DIN, Name Reservation, Incorporation, PAN, and TAN is combined in a single step with the help of SPICe form, which fully consolidates the company registration into one step. It also integrates the process of getting DIN and TAN into the same step, reducing the number of forms filed.
The Ministry of Corporate Affairs has facilitated changes in the procedure of online registration of Private Limited Company, which are deployed from 26th January 2018. The changes bought in have lead to substantial changes in the procedure of incorporation of companies, which are as follows:
- One such noteworthy change to mention is the change of the Form for Name Approval from e-web to a web form. For the purpose of facilitating such change the e-Form INC – 1 is suspended.
- Further, the Directors of the company is no more allowed to make an application for his or her procurement and form DIR-3 is suspended. The company concerned will be filing the application to procure DIN of the individual. Therefore, the company in which individual is proposed to be appointed shall be required to make application while filing form of appointment.
- SPICe form allows the application of a maximum of 3 new DINs.
Advantages of using SPICe Registration
Professionals seeking for their company registration, it chooses to start a company with a unique name, SPICe form would certainly be a relief. If the Professional is able to file the SPICe registration form, with certainty that the name is very unique, the majority of the steps of incorporation of a company would be combined. The chances of rejection are almost zero, and the company registration procedure can be completed within 3-4 hrs of filing of the SPICe form.
Drawbacks of using SPICe Registration
If the name of the company is not approved, SPICe does not provide flexibility. In such cases, the incorporation documents have to be newly submitted for the company registration. Incorporation document drafting and signing take a bulk of the time for a Professional in filing for incorporation, thus it’s advisable to obtain name approval and then submit the incorporation application.
Overview of Processes Combined Under SPICe
Incorporation of a Private Limited Company, One person company, and Limited Company can be done via SPICe. Visit us for a detailed Checklist for Company Incorporation under SPICe. An overview of the steps combined under SPICe for company registration is provided as follows:
Director Identification Number
Digital Signature Certificate must be obtained in the name of DIN applicant, prior to the application of DIN number. Digital Signature Certificates are issued in the form of a USB token, which contains the validity of one or two years. There is no expiry date for DIN and no further compliance formalities are necessary for maintaining the validity of a DIN number. A DIN allotment letter is issued for the intimation of DIN numbers and no other documents are issued.
An application for name reservation must be made to the MCA for the company registration. In case the proposed name of the company is accepted, name reservation is provided to the application for a period of 60 days. A minimum of two DIN is required to obtain name reservation.
The company is incorporated if there are no loopholes in the incorporation documents and the name is reserved for the applicant. In case the name is unreserved, then the name is checked by the MCA officer. If the name is available, then incorporation is provided. If there is no availability, then the form is asked to be resubmitted.
PAN is already allotted automatically on the incorporation of a company under SPICe form and is displayed on the incorporation certificate. Later the PAN card will be dispatched to the registered office address of the company.
TAN number is required for the purpose of deducting tax at source. This application is generally made after obtaining PAN. The allocation of TAN will be done along with PAN, which in turn would reduce another compliance related to registration a company.
For any queries related to your company Registration visit our website Company Registration Online
Related Post : A Complete Guide to Private Limited Company