The Ministry of Corporate Affairs (MCA) has introduced a new web form called SPICe+ or SPICe Plus replacing an older version of e-form used for incorporation of companies.
“SPICe+ would offer 10 services by 3 Central Govt Ministries & Departments, thereby saving as many procedures, time and cost for Starting a Business in India,” said the MCA in a release.
The new web form would facilitate on-screen filing and real-time data validation for the seamless incorporation of companies.
SPICe Plus will come into effect from Feb 23, 2020, as per the ministry.
Registration for Employees’ Provident Fund Organisation (EPFO) and Employees’ State Insurance Corporation (ESIC) will be mandatory for all new companies and no EPFO & ESIC registration number will be separately issued by the respective agencies, added the release.
The new companies will also have to mandatorily apply for opening the company’s bank account through AGILE-PRO form, it added.
SPICe Plus would have two parts: one for name reservation and the other for series of other services including incorporation, Director Identification Number (DIN), and the mandatory issue of Permanent Account Number (PAN) among others.
Once the form is filled, it will be converted into pdf format for uploading and signatures affixation.
The move is part of governments larger plan to enhance the ease of doing business in the country.
India has been lagging in ‘Ease of Starting Business’ parameters in comparison to China and Singapore. In 2019, India was ranked 63rd among 190 nations in the World Bank’s ease of doing business ranking.
At present, startups in India have to undergo difficulties in name of compliances and regulations.
Over the years, the number of startups incorporated in India has gone down. According to Tracxn report, the number of a startup incorporated last year was 5,462, around 35% down from 2018.