The Ministry has taken an incredible initiative by introducing SPICe system, especially INC 32, INC 33, 34 on 1st October, 2016. The purpose envisioned by the Ministry is to set up a speedier system of incorporation of the company.

 

De-coding of SPICe INC 32

The notification has brought in 3 major e-forms i.e. INC 32, 33, 34, wherein INC 33 and 34 contain a pre-drafted electronic version of a standard format of Memorandum of Associations (MoA) and the Article of Associations (AoA) for the proposed company.

The E-form INC 32 is a very crucial form which is the single application for incorporation of the company. It is a substitute of INC 1 (approval of the Company’s name), INC 7 (the purpose of company registration with the Charter Documents), INC 22 (proof of registered office of the company), DIR-12 (recording the names of first directors of the company). The e-form INC 32 makes the procedure remarkably easier and quicker such that it would take only 48 hours for approval of the incorporation application.

Shortcoming of SPICe INC 32, 33 and 34

1. How many names can only under SPICe INC 32?

Answer: With SPICe INC -32 an applicant can apply only with one name for the proposed company.

While registering a new company if the applicant wishes to offer more than one names as options, then they will have to file INC-1, wherein at least 6 proposed names for the company can be can be provided.

So, the risk factors involved in SPICe forms are relative high as compared to the normal procedure of filing for the incorporation. This is a major drawback for the applicant, while registering a new company.

2. The e-form INC 22, is still required to be filed with SPICe?

Answer: The E-form INC 22 is not to be filed if the company’s registered office corresponds with the address to be mentioned in SPICe INC 32.

However, if that is not the case, then INC 22 will have to be filed. The time within which INC 22 should be filed is 30 days.

So, it does not ease the incorporation procedure for the applicant who wishes to incorporate a new company.

3. Whether e-MoA (INC 33) and e-AoA (INC 34) is to be filled with SPICe (INC 32) in respect of non-individual first subscribers who are resides outside India?

Answer: No, in respect of non-individual first subscribers who are based outside India, pdf attachment of apostillised AoA and MoA shall be attached with SPCIe (INC 32).

When an applicant wishes to incorporate, a new company one of the subscriber in the company is a non-resident individual then apostillised AoA and MoA shall be attached with SPCIe (INC 32). This reflects that the incorporation documentation is not yet reduced; infact it is increased.

4. Can SPICe be used for incorporation of producer companies?

Answer: No, while incorporating a producer companies, un-registered companies and companies being formed with more than 7 subscribers, a new version of INC 7 shall be used for filling.

Yet, SPICe forms are not full-fledged e-form, it is a major drawback, as it was introduced to easy the formation of the company.

5. Is the DSC mandatory for the subscribers?

Answer: Yes, DSC (Digital Signature Certificate) is mandatorily required for all subscribers for the proposed company.

In e-AoA and e-MoA the DSC of all the subscriber are required to affixed along with the DSC of a Professional.

The preliminary expenses while incorporating a company is increased relatively.

So, the applicant can file for the incorporation of the company through the INC-7, DIR -12 and INC -22 format.

SPICe Form INC 32 is an improved version of INC 29, wherein a lot of changes are made looking into the interest of the stakeholders. Further, if utilised appropriately, SPCIe forms can definitely prove to be an important milestone for both existing and potential corporate players in this digital era.

We at Taxmantra.com help the startups to avoid the above-mentioned complication and thereby assist them to incorporate their companies easily.

Do drop a line at Start-Up Business. We will get back to you.