MCA (Ministry of Company Affairs) had made changes in Company Incorporation forms and waived MCA fees for filing Spice Forms (Memorandum and Articles of Association) for new companies having authorised capital up-to Rs.10 Lakhs. Other important changes are as follows:

1. For name registration a new form RUN(Reserve Unique Name) has been notified.  INC-1 is no longer applicable. Digital Signature not required to file Form RUN. Name application can also be applied along with Spice Forms also.
2. Incorporation documents and forms to be submitted within 20 days from the date of approval of name.
3. DIN (Director Identification Number), if not available with directors can be applied along with filing SPICE forms for incorporation.
4. PAN and TAN will continue to be allotted along with Company Incorporation Certificate.
5. Incorporation approvals will be delivered within a working day.
6.  Stamp Duty  applicable for registration will continue as usual based on the stamp duty rates prevailing in each State and Union Territory.

Also, Forms  INC-3, INC-12, INC-22, INC-24, DIR-3, DIR-12 and GNL-1 have been revised on MCA21 Company Forms Download page.

The waiver of MCA fees for new companies having authorised capital up-to Rs.10 Lakhs, will encourage Small and Medium Business to shift to  Companies. Even though the  Compliance cost of Companies are high, there is another attraction of less Income Tax Rate of 25% compared to 30% for other type of constitution like Firms, LLP etc. for Companies having turnover of less than Rs.50 crores. The  high Compliance cost will be negligible for Companies who have higher profits, when compared to savings of 5% in Income Tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

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