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The New Rules Governing Incorporation of Companies: A Step Towards Further Simplification
UNIQUE TIMES
|February - March 2017
The Ministry of Corporate Affairs (MCA) with a view of simplifying the procedure of Incorporation of Company has come up with Companies (Incorporation) Fourth Amendment Rules, 2016.
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The important step in this regard is the introduction of E-Form INC-32 under Simplified Performa for Incorporating Company Electronically (SPICE) scheme. Through this scheme, MCA has simplified the integrated process for incorporating a company by the introduction of electronic filing of Memorandum of Association (MOA) and Articles of Association (AOA).
Salient Features of eform INC-32
To start with, the form is a step ahead of the existing integrated form INC 29 as it allows incorporation of all types of companies including the incorporation of Non- Profit Company (section 8 company) which was not permitted in INC-29.
Secondly, the existing form INC 29 does not provide an option for entering the name already approved by Registrar of Companies. This has been a matter of concern as companies which have gotten name approval by INC-1 were unable to use the integrated form for incorporation. This ensures that the form is not rejected due to name unavailability.
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