Ministry of Corporate Affairs (MCA) has recently introduced Spice Form INC-32 which is a Simplified Proforma for Incorporating Company Electronically through Companies (Incorporation) Fourth Amendment Rules, 2016. Spice or Form INC-32 can help incorporate a company with a single application for:

 

1. Reservation of name

 

2. Incorporation of a new company and/or

 

3. Application for allotment of DIN.

 

The Integrated Form INC-29 has been replaced with Spice Form INC-32 and as such the Form INC-29 has been completely removed from the MCA portal. The Spice Form INC-32 is very similar to Form INC-29, which also helps with fast track incorporation of a company in India.

 

1. Purpose of the E-Form

 

Form INC-32 can help incorporate a company quickly in India by integrating many of the steps into a single process. It has been introduced to do away with filing of various forms.

 

The e-form 32 has other added benefits wherein the DINs get allotted to those directors who do not hold a valid DIN and also the company’s PAN, TAN and ESIC registration can also be obtained easily in a single step.

 

2. Key Features

 

1. DSC of subscribers needed instead of physical sign

 

2. Date of signing MOA & AOA will be date of affixing DSC

 

3. DSC of witness needed. If no DSC, no Spice procedure

 

4. The form will be processed at registrar’s office

 

 

3. Type of Companies that can be Incorporated using Spice Form INC-32:

 

Using Spice Form INC-32, the following types of companies can be incorporated in India:

 

1. Part I Company

 

2. The major addition to the Spice Form INC-32 is relating to provision for entering name approval that was already obtained by the applicant by filing INC-1 – thereby assuring the name.

 

4.  Declaration by Professional

 

The digital signature of a professional (Chartered Accountant/ Company Secretary/ Cost Accountant/ Advocate) is required to file Form INC-32. The professional must declare that all information presented in the form is correct and enter his/her membership number and certificate number.

 

5.  Documents Required for Spice Form INC-32

 

The following documents must be filed with Spice Form INC-32 for incorporation of company:

 

1. Applicable and mandatory only in case of Section 8 company or company with foreign subscribers not having DIN

 

2. Affidavit and declaration by first subscriber(s) and director(s) – mandatory in all cases

 

3. Proof of office address

 

4. Copies of utility bills that are not older than two months

 

5. Copy of approval in case the proposed name contains any word(s) or [removed]s) which requires approval from central government

 

6. If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy.

 

7. Proof of identity and residential address of the subscribers

 

8. Proof of identity and residential address of directors

 

6.  Advantages

 

There is no need to reserve the company’s name prior to Incorporation. Even if companies have applied for name in INC-1, at point No. 5(a) (i) of INC-32 where it has been asked whether approval of name in form INC-1 has been taken.

 

7. Disadvantages of Spice System

 

1. The biggest disadvantage in SPICE system is that the maximum number of subscribers can be seven only. In case of more subscribers, normal incorporation procedure has to be followed.

 

2. Only one name of the company can be proposed.

 

3. It is a bit costlier as DSC of all subscribers and witness is needed.

 

8. Conclusion:

 

1. Spice Form INC-32 is surely an improvised version of e Form-29 wherein a lot of changes have been made to accommodate the interest of the stakeholders by reducing the timelines, however due to some limitations it might not be feasible when compared to earlier procedure.

 

2. We can only hope that the regulators might address the inherent limitations that are being observed in the current procedure for incorporation through Spice Form INC-32 and make the necessary changes in the time to come so that stakeholders might be more benefited.

Print