Filing SPICe+ forms is an important step in company registration in India. The Ministry of Corporate Affairs (MCA) introduced this integrated web form to simplify and streamline the incorporation process. However, despite its efficiency, applicants continue to face rejections and delays due to errors. This article highlights the common mistakes and provides actionable solutions to smooth the filing experience.
What is the SPICe+ Form?
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is an online tool offered for the incorporation of companies in India. Launched in February 2020, SPICe+ replaces the earlier SPICe forms, integrating multiple services such as reservation of name, company registration, DIN allotment, and statutory registrations such as PAN, TAN, GSTIN, etc. It is divided into two parts:
- Part A is for name reservation
- Part B is for incorporation and other post-incorporation services
This integrated process has reduced the procedural complexities, but applicants must adhere to specific guidelines to avoid errors.
Common Errors and How to Avoid Them
Incorrect Name Selection
- Error: Choosing a company name that conflicts with existing entities or violates guidelines.
- Solution: Use the MCA’s Company Name Search tool to ensure the name complies with Section 4 of the Companies Act and Rule 8 of the Companies (Incorporation) Rules, 2014. Do not use any prohibited or misleading words, and ensure the name represents the business activity to be carried out.
Invalid or Missing DIN and DSC
- Error: Form submitted without valid DIN (Director Identification Number) or DSC (Digital Signature Certificate).
- Solution: All directors must have a valid DIN, and their DSCs should be registered and linked. Ensure that these details are verified before beginning the SPICe+ process.
Incorrect Handling of Mandatory Attachments
- Error: Failure to upload mandatory attachments such as identify proofs, address proofs, or NOCs.
- Solution: Collect all the documents that are required in one PDF file, that should not be more than 6MB in size. If directors or subscribers stay outside India, get the required documents notarized or apostilled.
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Common Errors to Avoid while Filing SPICe+ Forms
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MoA and AoA Filing Mistakes
- Error: Using a wrong template for MoA as well as AoA.
- Solution: According to the company and the subscribers of the company, take an appropriate e-MoA/e-AoA or MoA/AoA respectively. For foreigners and foreign and foreign companies, use the documents that are apostilled instead of using the e-versions.
Linked Forms Submission Sequence Mistake
- Error: Skipping some or making mistakes in filling some of the linked forms, such as AGILE-PEO, INC-9, or URC-1
- Solution: In submitting linked forms, follow the order accordingly:
- SPICe+ form
- e-MoA, if needed
- e-AoA, if needed
- URC-1, if needed
- AGILE-PRO is mandatory
- INC-9, if needed
Confirm all before submission.
Overlooking Pre-Validation and Pre-Verification Process
- Error: Posting the form without undergoing pre-validation or verifying the fields.
- Solution: Make use of the “Check Form” and “Pre-Verification” available on the SPICe+ portal. This assists in identifying missing details or errors before posting.
Attaching Files Larger than 6MB or Sending Multiple Files
- Error: More than 6MB attached files or posting multiple files.
- Solution: Optimize and merge documents in a single PDF file. Use file compressional tools if needed.
Inaccurate or Incorrect Capital Information
- Error: Incorrect representation of paid-up or issued-capital
- Solution: Verification and correctness of capital details. Wrong information may pose an issue in court later.
Lack of Usage of Integrated Services
- Error: Non-usage of SPICe+ integrated services regarding PAN, TAN, GSTIN, EPFO, and ESIC.
- Solution: Make use of the services offered by the form to avoid duplicate submissions. PAN and TAN are mandatory while incorporating a company.
Declaration and DSC Affixing Omission
- Error: The declaration checkbox is missed or DSCs are not affixed to the generated PDF.
- Solution: Declare all and affix DSCs before submitting the final form.
Talk to Corpbiz experts for Filing SPICe+ Forms.
More Tips for Filing Error-Free SPICe+
- Keep Track of Rules: Keep looking at MCA notifications to check for changes in filing requirements or guidelines.
- Use Reliable Internet: SPICe+ is a web-based form, and interruptions during filing can lead to data loss.
- Save Frequently: Use the “Save and Continue” feature after completing each section to avoid losing progress.
- Raise Queries Promptly: For technical issues, raise a ticket on the MCA portal and await resolution.
To Wrap Up
The SPICe+ form is a revolutionary step in India’s “Ease of Doing Business” initiative. However, success depends on the applicant’s understanding of the process and adherence to rules.
Avoiding common errors such as incorrect name selection, improper attachments, and skipping validation steps can enhance the filing experience significantly. Staying informed and being meticulous helps entrepreneurs navigate the complexities of company incorporation easily.
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Frequently Asked Questions
What is the advantage of using SPICe+ over previous methods?
SPICe+ combines several services into one form, saving time and money on the incorporation of a company. It streamlines statutory registrations like EPFO, ESIC, and GSTIN along with PAN and TAN issuance.
Can I apply to reserve a company name without submitting Part B?
Yes, you can apply to reserve a company name using Part A for a fee of ₹1,000. You may then proceed to Part B for incorporation.
My SPICe+ Form gets rejected? What to do?
You can resubmit up to twice to make the corrections. If declined the second time, you'll have to apply again.
Is it a must for all businesses to have AGILE-PRO?
Yes, AGILE-PRO is mandatory because this application covers GSTIN, EPFO, ESIC, and professional tax registrations as well. Although these are not relevant at this point, they are also necessary to be issued along with incorporation.
Can Foreign directors file SPICe+ without an Indian visa?
Yes, foreign directors can file SPICe+, but all documents including MoA and AoA are to be apostilled and they must also abide by the visa for further operations.
Read our blog: SPICE+ Form: Fast-track Company Registration
