News Highlights : Govt simplifies form for incorporation of companies
Oct 04, 2016, 10.27 AM | Source: PTI
The Corporate Affairs Ministry, which is implementing the Companies Act, today said there would be a "simplified and completely digital form for company incorporation".
Continuing efforts to improve ease of doing business, the government has simplified the form required for incorporation of companies and submission of related documents.
The new electronic proforma aims at speeding up the incorporation related services.
The Corporate Affairs Ministry, which is implementing the Companies Act, today said there would be a "simplified and completely digital form for company incorporation".
An official release said the Simplified Proforma for Incorporating a Company Electronically (SPICE) is aimed at providing speedy incorporation related services within stipulated time frames which are in line with international best practices.
The ministry has taken "another bold initiative" in Government Process Re-engineering (GPR) by launching SPICE.
The new proforma will have a standard format of e-Memorandum of Association and e-Articles of Association. The Memorandum and Articles can now be filed as linked e-forms, except for not-for-profit entities.
Further, firms have the provision for incorporation with a pre-approved name.
Digital signature certificates have been made compulsory for "subscribers and witnesses" in SPICE Memorandum of Association (MOA) and Articles of Association (AOA).
There would be "back Office productivity gains due to faster review of e-MOA and e-AOA by approving authorities," the release said.
"Existing INC 29 and INC 7 (forms) will be phased-out and SPICe will be the sole, simplified & versatile form available for incorporation of a company in India," it added.
INC 29 is used for conversion of a public firm into a private one or vice-versa while INC 7 is for submission of affidavits by directors concerned.
In recent times, the government has been taking various steps to further improve the ease of doing business in the country.
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