Jun 6, 2019
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Come Republic Day, come freedom for small companies and startups in India, this year. The government of India or the Ministry of Corporate Affairs (MCA) has introduced new reforms with regards to registering a new company. Let’s find out how your startup dreams can benefit from these latest schemes.
As a part of the Government Process Re-engineering (GPR) initiatives, MCA has implemented the following reforms:
If the authorized capital of your proposed startup does not exceed Rs. 10 lakh, then you can register your company with the government for Rs. 0. This zero fee provision is now applicable for the submission of SPICe forms (Simplified Performa for Incorporating Company Electronically), e-MOA (Memorandum of Association) and e- AOA (Articles of Association). Even though the stamp duty shall still be charged, this reform can save you Rs. 2000 and it is a great step to digitize your startup.
A new form, known as the Reserve Unique Name (RUN) form, has replaced the INC – 1 form. Once again it is an e form which provides that you can only mention one option for the name of your proposed company. Earlier one could provide six options/ suggestions in the form. Also, the RUN form can be submitted at the rate of Rs. 1000 irrespective of whether the name is approved or not. Plus, now you can register the name without the compulsion of providing a DIN (Director Identification Number) or DSC (Digital Signature Certificate). These provisions aim at speeding up the incorporation process without wasting time. With the one name option instead of six, there will be less confusion leading to faster registration of your startup.
At the time of registration, you no longer need to worry about obtaining and submitting your DIN. The DIN will be allotted only at the time of the appointment of the director in case you don’t have one at the time of submitting the forms.
With these implementations, the government only aims at encouraging new startups by reducing their burden. The objective is to eliminate unnecessary steps in the company incorporation process. The focus is on collecting only “need-based” information from individuals, thereby saving time and effort. Now registering your startup has only become simpler, smoother, easier and quicker. To make your startup inception more hassle-free all you need is iKeva to solve all your office space issues. Visit us now and get started https://www.ikeva.com/
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