The introduction of Form INC-32, known as SPICe – Simplified Proforma for Incorporating Company Electronically, has made it both faster and more efficient to incorporate a company in India. This part of the MCA 4.0 initiative was introduced recently to combine several forms into an integrated form, thus simplifying the process of registration of companies by filing one application.
Due to this, form INC-32 has streamlined the procedures and paperwork required to be done to setup a Company, as part of the Government of India “Ease of Doing Business” initiative. Besides saving both time and cost, this digital advancement guarantees smooth coordination with the several departments involved in company formation process.
What is Form INC-32 (SPICe)?
This is a normal fee of Rs.5, 000 (Rs.15, 000 in the case of new companies) to be paid when submitting the electronic incorporation forms – SPICe (Form INC-32). It superseded the previous process, wherein the applicant was to submit separate forms for Director Identification Number (DIN), name approval & incorporation.
SPICe will integrate the process of company incorporation, obtaining DIN for directors, name reservation, PAN, TAN and even GSTIN in one go. This single-window system ensures that startups and businesses can get started and operational at a much faster pace without getting stuck in bureaucratic time delays.
Objective and Purpose
Simplification of the process of incorporation would ultimately be contributing to the ease of doing so because the main aim behind the unveiling of INC-32 was to enhance digital governance specifically in the arena of companies. Before SPICe, a company needed several filings and physical documents had to be submitted, resulting in delays and an inefficient process.
SPICe is an eco-friendly initiative by bringing multiple formalities into one single form, which makes the system more user-friendly and transparent and therefore, eliminates redundant steps, saving time. This step never aims other than to ease the incorporation process for companies to help them grow and attract further startups and investments.
Authorizations on Form INC-32
The Companies (Incorporation) Fourth Amendment Rules, 2016, under the Companies Act, 2013, introduced Form INC-32. Rule 38 of Companies (Incorporation) Rules, 2014 governs it and has been a common application form for the incorporation of all kinds of companies viz Private Limited Company, Public Limited Company, Section 8 Company, Producer Company, and One Person Company (OPC).
It was in February 2020 that the elevator services of SPICe+ (INC-32 Part A and Part B) were launched and gradually expanded the utility of the elevator system (including EPFO, ESIC, Professional Tax, Bank Account Opening, Shops & Establishment registration in certain states).
Advantages and Features of INC-32
The primary advantage of having Form INC-32 is that it combines a number of registrations as well as approvals in a single step. The features include:
- Approval of Director Identification Number (DIN) for max 3 directors.
- Reservation of company Name through Integrated Part A.
- E-filing of Memo. of association (INC-33) and Articles of association (INC-34).
- Automatic allotment of PAN and TAN
- GSTIN, EPFO, ESIC, and Bank Account are optional.
- Professional pre-certification for accuracy and legal
These make SPICe a time-saving, inexpensive, and, at the same time, legally compliant way to incorporate a company in India.
Who Can File Form INC-32?
All companies which are to be incorporated under the Companies Act, 2013 will have to use the prescribed Form—Form INC-32. SPICe acts as the entry point for official registration, be it through the formation of a Private Limited Company, Public Company, One Person Companies (OPC), or Section 8 Companies (non-profit).
But, in case of companies requiring prior approval from sectoral regulators like RBI, SEBI, or IRDAI, they should obtain such prior approval before applying for SPICe filing.
Procedure for Filing Form INC-32
Filing Form INC-32 under the MCA21 portal is a multi-step process that begins with obtaining DSCs and ends with the documents being uploaded. Below is a high-level outline of the process:
- Apply for DSCs of proposed directors and other professionals. It is compulsory to e-file all MCA forms electronically.
- The applicant should file SPICe+ Part A for name reservation. Part B once approved is completed by providing the incorporation detail like Register office address, directors, capital structure and subscriber detail.
- MoA (Form INC-33) and AoA (Form INC-34) in electronic form is drafted, signed with DSC and uploaded. Subsequently, we submit all other mandatory attachments, including ID verification, address verification and declarations.
- In this case, a director digitally signs the form and signs it with the practitioner of a Chartered Accountant, Company Secretary, or Cost Accountant. The ROC examines the application after the commencement of such application and the payment of requisite fees.
- When everything appears to be in order, the ROC issues a Certificate of Incorporation (COI) along with PAN, TAN, and other registration numbers.
Attachments Required with INC-32 Application
Several accompanying documents must be submitted along with Form INC-32. These can be the identity and residence proof of all the directors and subscribers, a utility bill for the registered office, NOC from the property owner, declaration by the subscribers and consent to act as a director in Form DIR-2.
If the party is a foreigner or a foreign company, documents need to be apostilled or notarized in accordance with international law and Indian consular law.
Professional Certification and Compliance Check
The complete application requires certification by a practicing professional (CA, CS or CMA) before submission. This certification confirms the satisfaction of all statutory requirements and that the information given is truthfully accurate according to their best understanding.
A professional verification of company incorporation documents assists in minimizing the possibility of rejection, slowing down of processing, and increases the credibility of company documents.
Formalities After Incorporation
Post incorporation formalities are to be done once the Certificate of Incorporation has been issued.
- Setting up a bank account in the name of the company.
- Filing of INC-20A (Declaration of Commencement of Business) within 180 days
- If applicable, GST registration.
- Keeping statutory registers and records.
- Hold the first Board meeting within 30 days of incorporation.
This ensures that the business is correctly registered and legally able to operate.
Conclusion
Form INC-32 (SPICe) has transformed the process of company incorporation in India. It fast-tracks this process across many stages in a single digital landscape, ultimately delivering transparency and centralization for entrepreneurs and professionals. It is a one-stop solution for newly formed business entities with the amalgamation of PAN, TAN, GST, and other requisite statutory registrations.
Whether you’re a startup founder or a legal consultant helping with company formations, efficient knowledge of SPICe and how to utilize it can pave the way for a hassle-free registration process. Right from the start, MCA compliance forms the bedrock of a legally run and professionally managed company.
