Companies Incorporation Process simplified further

The Central Government in its initiative towards Ease of Doing Business has further simplified the procedure for incorporation of a company vide the Companies (Incorporation) Amendment Rules, 2020 which shall come into force with effect from February 23, 2020.

As a part revised regime, the requirement for filing of web based Form RUN for reservation of name by proposed companies would be discontinued. Further, web based Form RUN would only be used for change of name by existing companies.

Revised Rule 9 of the Companies (Incorporation) Rules, 2014 pertaining to reservation of name is as reproduced below:

9. Reservation of Name or change of name

An application for reservation of name shall be made through the web service available at www.mca.gov.in by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32), and for change of name by using web service RUN (Reserve Unique Name) along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014, which may either be approved or rejected, as the case may be, by the Registrar, Central Registration Centre after allowing resubmission of such web form within fifteen days for rectification of the defects, if anv, with effect from 23^rd February, 2020.”

Other changes as provided in the Amendment Rules are as follows:

1. E-Form SPICe PLUS has substituted the earlier E-Form SPICe;
2. E-Form SPICe PLUS has been divided into two parts:
   1. Part A deals with application for reservation of name; and
   2. Part B deals with application for incorporation of company
3. E-Form AGILE has been replaced by E-Form AGILE PRO;
4. E-Form AGILE PRO can be used for mandatorily obtaining following additional numbers:
   1. Issue of EPFO registration
   2. Issue of ESIC registration;
   3. Issue of Professional Tax registration (in the state of Maharashtra);
   4. Opening of bank account of the company (Presently, only Punjab National Bank has been integrated with SPICe+. Gradually, many other public and private sector banks would also be integrated with SPICe+)

The Companies (Incorporation) Amendment Rules, 2020 can be accessed at Rules 2020