Registering a new company in India has now become simpler after the introduction of the SPICe+ form, a web-based application. Ministry of Corporate Affair introduced this online form on 15th Feb 2020 on its official website. Company registration is imperative for those entities that are willing to conduct their business under a legal framework.
In India, an entity can be converted into different business forms depending on the nature of the business and the size of the operation. At present, a Private Limited is considered the most profitable and sustainable business model in the country. In this blog, you will come to know how to transform a new company into a legally registered entity.
Procedural Instructions for Registering a New Company under Company Act, 2013
The Ministry of Corporate Affairs has introduced the SPICe+ web form intending to simplify the company registration process for the new company. This new form is categorized into two sections i.e. PART A and PART B. The PART A of the SPICe + allows users to reserve a company’s name; meanwhile, Part B renders the following services:-
The PART A of the SPICe +
The process of registering a new company starts with the name reservation. The following section will let you complete the name reservation process with ease.
- First, open the official website of MCA and then log in to the same website.
- On the home page, opt for the “MCA services” >SPICe + option.
- Select the “New Application” option on the new windows and fill up the following fields:
- Type of the company
- Class of company
- Category of company
- Sub-Category of company
- Main division of Industrial Activity of the Company
- Description of the main division
- After filling the above fields, enter the proposed name of the company.
- Opt for the Auto Check option to initiates the data validation process conducted by the portal itself.
- Result of the validation process shall appear on your screen once the portal is done with the same.
- Tap on the Save option to proceed further.
- Within a couple of seconds, a notification shall prompt on the screen. Here you need to select the Submit option.
- Opt for “submit for name reservation” option in the dialog box.
- A payment window will prompt on your screen. Make sure to note down the SRN (Service Reference Number) as it could come in handy for tracking the status of application.
- Tap on the “Pay now” for furnishing the fees for name reservation.
Once you fulfilled every requirement of PART A, go ahead and completes the detail of Part B of the form.
Read our article:Analysis on the Fast Track Company Registration under SPICe+ in India
The PART B of the SPICe +
Part B of the SPICe+ form contains plenty of sections in regards to the check form. The detail about incorporation is as follows:
Select the pre-scrutiny check. The submission of the application would be confirmed by the portal via a notification. Make sure to get the downloadable copy of Part B for the attachment of DSC i.e. Digital Signature Certificate and other forms alongside Form B. The form associated with SPICe+ web form encloses SPICe+MoA & SPICe+AoA, AGILE-PRO, URC-1 & INC-9. The applicant can submit the said forms on the MCA’s website without much of a hassle.
Keep in mind that Service Request Number (SRN) shall be delivered by the portal against the fee submission for the new company registration. After successful payment, the portal will consider the application and it to further processing.
- In case if any error is detected by the authority in the application then resubmission is the only option in such a case.
Required Paperwork for the Registration of a New Company
- Charter of the establishment i.e. MOA and AOA.
- Declaration given by directors & subscribers.
- Confirmed office’s address.
- Copy of utility bills such as electricity and gas bill (for the last two months)
- Nominee’s assent
- Residential address as well as ID proof of the nominees & subscribers.
- The Declaration of the unregistered companies
- Proof on the subject of the principal place of business
- Appointment proof of Authorized Signatory’s
- Letter of Authorization/Copy of Resolution agreed by the Board of Directors
- Appointment proof for GSTN of the proposed director
- Proposed Director’s ID for a new bank account.
- Proposed Director’s address proof for opening the bank account
- Proposed Director’s signature for EPFO
Benefits of Registering a New Company into a Legal Entity
- A registered firm has the opportunity to explore government-related schemes, unlike their counterparts.
- A new company operating under Company Act, 2013 seemingly stays longer and stable than unregistered entities.
- A new company with legal status has more ability to attract potential customers.
- The likelihood of encountering the legal issues is less in the case of the registered company, be it a matter of expansion or opening a subsidiary unit.
- Forceful acquisition of a registered firm is not possible as it remains isolated from illegal manipulation.
- The shareholders of the privately held entity enjoy the limited liabilities-meaning they are not liable to put their assets at stake for compensating the loss incurred by the company.
- A Private limited firm offers more solidity in terms of legal structure and transparency.
- The wrapping of a registered companies isn’t as straightforward as an unregistered firm. The director and the shareholders of the company have to make a collective effort to serve such a purpose. Thus; even the closure of the establishment in case of a registered company is protected by the legal provisions.
Availing the government registration is the best way to minimize risk with the newly established entity. A registered company is less likely to encounter issues on the legal front and stays functional regardless of the condition of its members. Thus; company registration is the only way to maximize the profitability of the business.
The process of registering a new companies under the Company Act has been simplified after the launch of the SPICe+ form. By releasing this form, MCA aims to curb the complexity associated with the preceding process and minimizes the risk of cancellation.
Read our article:Exciting Benefits of Private Company Registration That You Can’t Ignore!