The Ministry of Corporate Affairs (hereinafter referred as ‘MCA’), has notified that no incorporation fee will be applicable for the registration of One Person Companies and Small Companies whose nominal share capital is less than or equal to INR10,00,000.
No incorporation fees:
MCA has confirmed that incorporation fees will not be applicable on filing of form INC-32 (SPICe) for incorporation of companies with a nominal capital of less than or equal to INR 10,00,000 or in respect of companies not having a share capital whose number of members as stated in the articles of association does not exceed twenty, with effect from January 26, 2018. Further, initiatives have been undertaken to simplify reservation of name of company and also for allocation of DIN.
RUN web Service:
Provision for name reservation has also been made. The reservation of name of a company to be incorporated can now be done through the RUN (Reserve Unique Name) web service available at the website of the MCA although such reservation will be subject to approval by the Registrar, Central Registration Centre.
Allotment of DIN:
The process of allotment of Director Identification Number has been revised and can now be allotted through the combined Simplified Proforma for Incorporating Company Electronically (SPICe) form itself at the time of an individual’s appointment as director in case the individual does not already have a DIN.
Ease of Doing Business:
This amendment has been initiated in order to improve India’s ranking with respect to Ease of Doing Business in the country. Also, as per a Press Release, these initiatives are in furtherance of launching Government Process Re-engineering (GPR) initiatives for making the incorporation process speedier and reducing the number of procedures involved for starting a new Business.
In accordance with above three initiatives, the Companies (Incorporation) Amendment Rules, 2018 and the Companies (Registration Offices and Fees) Rules, 2014 have been released.
The Government has been taking active steps to improve the rankings regarding the Ease of Doing Business published annually by the World Bank. The companies being incorporated in the year 2018 will benefit from these initiatives and this is expected to improve India’s ranking in the World Bank’s report as well.