People who aspire to be a business owner of any kind of business in India, were in a state of happiness due to an important announcement made by the ministry of corporate affairs in India which is a ministry for regulating the corporate sector in accordance with law. It is mainly responsible for regulation of companies in industrial and service sector. The announcement was regarding the Ease of Doing Business as the ministry announced that It will make the process of incorporating and register the Company Registration in India simple and fast process. Which earlier was a very complicated and was full of many legal formalities. Ministry of corporate affairs is launching the Government Process Re-engineering (GPR) and launched the Simplified Proforma for Incorporating Company Electronically (SPICe) e-Form for making the incorporation process Fast, uncomplicated, and reducing the number of procedures involved in starting a business.
Some of The Key Point of This Initiatives are as follows:
The Ministry said it would unveil RUN or Reserve Unique Name web service for name reservation on January 26. The initiatives would significantly enhance the “ease of doing business — starting a business” in the country and benefit a large number of stakeholders, it said.Also under RUN, there would be no need for filling INC-1 E-Form and no need for DSC(Digital Signature Certificate).
Other initiatives under GPR include re-engineering the process of allotment of Director Identification Number (DIN) by allotting it through the combined Simplified Proforma for Incorporating Company Electronically (SPICe) form SPICe is a more versatile form than INC-29 and leverages on digital technology by eliminating the need for hard copies of physically signed documents being attached to an e-form.
SPICe is now the Sole, Simplified & Versatile form available for incorporation of a company in India which has 5 services in one E-Form including DIN, Name Reservation, incorporation, PAN and TAN only at the time of an individual’s appointment as director (in case he/she doesn’t have a DIN), it added. So its really helpful to incorporate a one person company registration.
MCA says that the fee for filing the incorporation form has been reduced from Rs.2000/- to Rs.500/-. Further, the ministry has also an integrated system with the CBDT for the issue of PAN and First TAN (Tax Deduction and Collection Account Number) to a company incorporated using the Simplified Proforma for Incorporating Company Electronically (SPICe).
Stakeholders can submit applications for PAN and TAN at the time of submitting applications for incorporation.
The initiatives also include ‘zero fees’ for incorporation of all companies with authorized capital of up to ₹10 lakh and CRC will deliver incorporation approvals within one working day.
Why Is This Initiative Important and what will be its Impact on Indian corporate?
From time to time MCA brings new initiatives and schemes in India that help in smooth running and improving the overall state of corporate bodies in India.In the last assessment year, the MCA had formed major initiatives such as establishing the “Central Registration Centre (CRC)” for delivering speedy incorporation related services and near real-time issuance of PAN and TAN through a single on-line process.These initiatives are meant for uniformity in the application of rules and removing discretion, according to a statement from the Ministry. The GPR (Government Process Re-engineering) has a three-way approach for automating the approval processes by utilizing advanced software tools, rationalizing and modifying certain rules and engaging professionals to expedite the process of manual scrutiny.With the above initiatives in place, the government aims to significantly enhance the “Ease of Doing Business -Starting a Business” in India and benefit a large number of stakeholders.