Company Incorporation in India witnesses another bold and big initiative in the form of SPICE. SPICE or Simplified Proforma for Incorporating Company Electronically is an initiative by the Government. The Ministry of Corporate Affairs (MCA) unveiled this initiative on Gandhi Jayanti, with the objective of providing speedy incorporation related services within stipulated timelines. This initiative is expected to bring the current company registration norms in line with best international practices.

The MCA has notified Companies (Incorporation) Fourth Amendment Rules, 2016 with SPICE as one of the biggest introductions. Through this notification, MCA has notified simplified integrated process for incorporating a company in E-form INC-32 along with Memorandum of Association in E-form INC-33 and Article of Association in E-form INC-34. This form is an improvement of Form INC-29. This form is available on MCA w.e.f. 03.10.2016.

How is it different from existing fast track form INC 29 and existing incorporation forms?

1. Pre-approved names can also be filed for incorporation through this form. MCA’s first fast track initiative was in the form of INC 29. It did make incorporation easier and faster. However, it also had its own share of restrictions. One of such restrictions was that it could not be used for pre-approved names. That is to say if users already had got a name approved through filing of form INC 1 and the incorporation process was stuck somehow, they could not use INC 29. SPICe form INC 32 does away with this restriction.
   
   2. Electronic filing of Memorandum & Articles of Association. This is the first time that this facility has been provided by the Ministry to prepare MOA & AOA in electronic mode in e-form No. INC-33 and 34 respectively. However, there is a significant drawback that comes along with this. Details of maximum subscribers allowed through form SPICe (INC-32) is SEVEN. For more subscribers, this form will not work.

   3. Incorporation of Section-8 Company permitted through this form.

   4. Incorporation of Producer Company permitted through this form.

   5. Minimum authorized and subscribed share capital required for an OPC is Rupee one or a private company having share capital is Rupees two and in case of a public company Rupees seven

Existing INC 29 and INC 7 will be phased out slowly and SPICe will be the Integrated Sole version of company registration form in India. However, before that happens, something must be done to ease out the restrictions that comes with it.

Download Companies (Incorporation) Fourth Amendment Rules, 2016 here.

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