Blog Article

INC 29

Form INC 29 was designed for Incorporation of companies (within 1-2 days) in India. Form INC 29 made the incorporation process a single unified process that included the filing of Director Identification number (DIN), Name, etc. all in one single process. The key stakeholders and subscribers benefited the most under this incorporation method. At present, 35% incorporations are done under INC Form 29.

Though several advantages came with the use of INC Form 29, professionals viewed this form of incorporation as risky because there is a chance of the whole form being rejected due to an error in one part or section (such as name) at the final stage of the application process. Investors were averse to this drawback and this led to the creation of Simplified Performa Of Incorporating A Company (SPICe) Form.

SPICe Or INC 32

Simplified Performa for Incorporating a Company Electronically (SPICe) is an electronic form filed online in the form INC 32 as per the Company Amendment Rules, 2016. SPICe is an initiative of the Ministry of Corporate Affairs (MCA). Practicing professionals and several institutes contributed toward the framing and testing of this form toward improving the ease of doing business in India.The form INC 32 is similar to INC 29 in the sense it helps fast track the incorporation of a company in India with the only exception, the former form has a provision for name approval, thereby assuring the name, while the latter has no such provision.

Advantages Of SPICe

• SPICe employs digital technology and databases to incorporate companies. A database serves as a digital record of companies incorporated.
• Speedy incorporations leading to a number of man-hours and back-office hours saved.
• Technological upgrades or additional requirements will be easy to incorporate into SPICe forms.
• Any changes made to the forms (e.g. name change, change in registered office, etc.) can be checked online by the authority and a decision can be made immediately, whether to approve or reject such changes.
• SPICe is easy to file (and can only be filed) online with the use of auto-generated forms. There is also a reduction in the number of attachments that need to be sent during incorporation (especially for Aadhaar holders).

Salient Features Of SPICe

The process starts with the phasing out Forms INC 2, INC 7 and INC 29 and replaces these forms with SPICe for all incorporation purposes. This is applicable to all entities except Section 8 Companies and producer public companies.

• INC 32 eforms
  Electronic filing of Memorandum of Association and Articles of Association. These should be filed as linked eforms (This applies to all entities except section 8 companies and Foreign nationals without DIN).

Based on the type of company, the following standard templates are used:

• INC 33
  Standard format of MOA

• INC 34
  Standard Format of AOA

• INC 1
  This facility enables an applicant to apply with a pre-approved name. There is a provision so that the INC 1 form can be incorporated into the SPICe Form. Either (SPICe or INC 1) of the forms can be used, though there is an added advantage of incorporating through SPICe.

• AOA can be entrenched
  AOA can be entrenched in the sense once the AOA is filed, it cannot be changed and is stored permanently online. Besides, an AOA of a company shouldn’t change post incorporation or otherwise.

• The Digital Signature Certificate (DSC)
  The DSC of the subscribers and the witnesses is mandatory in eMOA and eAOA. The limit is 7 subscribers and 1 witness per incorporation, though accommodation for certain cases that require more than 7 subscribers has been undertaken.

• Foreign nationals subscribers DIN is yet to come.

• DIN is sufficient evidence
  DIN serves as sufficient evidence of identification of a director. To file for DIN, just one or two documents are required.

• Refund if forms are rejected
  The filing fee for SPICe is based on the authorized capital of the company. Refund will be given online if forms are rejected.

• Aadhaar is consistent with digitization
  If any subscriber has an aadhaar number, then the KYC norms are relaxed. Aadhaar will create a database of all information. Aadhaar integration ensures that a scanned copy of the same need not be sent to the ROC.

• Through certified copies of the AOA/MOA, a company can open a bank account.

Do shift to SPICe at the earliest before other forms are fazed out. This will become the standard form and format for all incorporation related purposes. To avail of Digital Signature Certificate or DSC, do check out eSignDesk.com.