Know Everything About Company Formation with SPICe Form

In the past, incorporating a new company in India was a complicated and tedious process. There were extensive regulations, and multiple forms, like INC 1, INC 7, INC 8, and INC 10, were required to be filed to form a new company successfully.But with the growing popularity of the startup culture, the Ministry of Corporate Affairs (MCA) introduced a simpler alternative- SPICe Form. Technically known as Form INC-32, SPICe (Simplified Proforma for Incorporating a Company Electronically) combined multiple company incorporation forms into a single form that can be filed online.Entrepreneurs and business owners who plan to start a new business can now do so by filing the SPICe form online. Here is everything that one should know about this new initiative-

As mentioned above, SPICe is a new initiative by the MCA to help fast-track the company incorporation process. It was introduced in 2016 to help eliminate the time-consuming process of registering a commercial entity, making it easier for entrepreneurs and businesses to start a new company.Apart from company incorporation, the SPICe form can also be used for-

• Name reservation
• DIN (Director Identification Number) allotment
• Applying for company PAN (Permanent Account Number) or TAN (Tax Deduction and Collection Account Number) or TAN (Tax Deduction and Collection Account Number)

The SPICe form can be used by-

• Part 1 companies under the Indian Companies Act, 2013, including partnership firm, limited liability partnership, society, cooperative society, and other businesses that are formed under other laws before the commencement of this Act
• Companies that have registered as a ‘Producer Company’ under the Companies Act of 1956 and are involved in activities specified under Section 581B
• Section 8 companies or Non-Profit Organizations (NPOs)
• Other companies that want to register as a ‘New Company’

The pre-requisites for filing the SPICe form for company incorporation are as follows-

• Shareholders- Minimum 2
• Directors- Minimum 2
• Company Name- Either through RUN (Reserve Unique Name) Name Reservation or Name Reservation with Incorporation
• DSC (Digital Signature Certificate)
• Share Capital- No Minimum Capital
• Registered Office Address- Temporary or Permanent

If a private company wants to register with the SPICe form, they can do it online. Apart from the form itself, they will also need a few documents. Here is the list of documents required for filing the SPICe form-

• Identity Proof- PAN (mandatory), Aadhar Card, Driving License, Passport, etc.
• Address Proof- Electricity Bill, Telephone Bill, Bank Statement, Bank Passbook, etc. but not older than 2 months
• Document Execution by Company Directors- Form DIR-2 and DIN details
• Document Execution by Shareholders- DSC Application and Form INC-9
• Registered Office Address- Address proof in the name of the premises owner and NOC from the owner for allowing the premises to be used as a Registered Company

The SPICe form is available on the official MCA website. Once the form is filled and required documents are available, they can be uploaded on the MCA website.Here is a brief overview of the details that one needs to provide on the SPICe form-

• Whether the name is already approved by the Registrar of Companies (ROC)? – Select “No” if the name is not approved. If the name is already approved, select “Yes” and enter SRN (Service Request Number) from RUN. Based on the SRN, the entity type will be automatically updated on the form.
• Field [1(a to f)]- Company details, like type, class, category, IFSC, etc.
• Field [2 (a&b)]- Details of the main division of industry activity, along with a brief description of the same. If the entity has an AoA (Articles of Association), select “Yes.” If not, then select “No.”
• Field [4(a to c)]- Enter the Correspondence Address of the company if the company does not has its Registered Address. In the next column, select “Yes” if the Correspondence Address is the same as the Registered Address. Select “No” otherwise. In [4 (c)], enter the name of the ROC (Registrar of Companies) where the company is registered.
• Field [5(a)]- Enter the Approved or Proposed company name
• Field [6(a)]-(i)Total number of subscribers (with and without valid DIN)(ii) Number of non-individual first subscribers (with and without valid DIN)(iii) Number of individual first subscribers-cum-directors (with and without valid DIN)(iv) Total number of directors [directors who are not subscribers+subscribers-cum-directors from the (iii) column]
• Field [8(a&b)]- Details of the State/Union Territory where the stamp duty is paid will be automatically updated
• Field [9]- Details of PAN and TAN
• Field [10]- Fill the Unit Type, Nature of Work, and Work Sub-Category as per ESIC (Employee State Insurance Corporation)
• Field [11 to 15]- Applicability of EPF (Employees Provident Fund) and MPA (Miscellaneous Provision Act), 1952, and employee details

• You should attach Memorandum of Association (MoA), Articles of Association (AoA), and Declaration by the first subscribers and directors to the SPICe form before submitting
• A professional, like Chartered Accountant, Company Secretary, Advocate, or Cost Accountant should digitally sign the form
• The form should also be digitally signed by the proposed director, along with his/her PAN/DIN number
• Do check the SPICe filing fee before as it can vary based on share capital and number of members
• Submit the duly filled form, along with the attachments, and pay the SPICe fee for completing the submission online

From 23rdFebruary 2020, the MCA has introduced an upgraded version of the SPICe form, known as SPICe+. It is an integrated web form for name reservation of new companies, company formation , DIN allotment, PAN, TAN, and more. It has a new and improved dashboard, on-screen filing, real-time data validation, and several other features for added convenience.For incidental and incorporation registrations, the applicants now use the SPICe+ form. The SPICe form should now only be used by entities that have already received name approval before 23rdFebruary 2020. It can also be used for resubmitting an already submitted SPICe form.

SPICe is an excellent initiative by the MCA to make it easier for the entrepreneurs and businesses to incorporate a new company. Both the forms, SPICe and SPICe+, offer greater ease of doing business, helping business owners incorporate, register a business name, generate PAN/TAN, and use other services of the MCA in the most convenient manner.Visit the MCA website to know more about the SPICe forms or consult a legal advisor to get all the help and assistance with regard to incorporating a new company.Ready to make the most of your money? Start your tax planning journey now!

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.