Company Incorporation in India Becomes Faster and Cheaper – Register your Company Free
The Ministry of Corporate Affairs (MCA), Government of India, has made incorporation of all types of companies faster and cheaper in entire India, through introducing few new Government Process Re-engineering (GPR) initiatives, which were announced on the occasion of the 69th Republic Day of the country (celebrated on January 26, 2018). The main objective behind making incorporation of all types of companies (including LLPs) faster and cheaper, is to ease further the 'Starting a Business' in India by Indian and foreign entrepreneurs.
Here, noteworthy also is the fact that 'Starting a Business' is an important parameter/indicator for measuring the overall Ease of Doing Business Ranking of countries by the World Bank Group. As per the Doing Business Report 2018, India attained the top 100th position among 190 countries of the world over, in respect of the overall EoDB; in which India's rank in connection with the parameter 'Starting a Business' is 156th. Hence, as MCA intends to place India among the top 50 countries in respect of the EoDB Rankings published by the World Bank Group every year, MCA must make further improvement possible in the parameter of 'starting a business' in India, along with mending conditions in other parameters used by the World Bank Group for reckoning the overall EoDB. In light of these facts and aims, laudable is the mca company registration process 2018, which is described briefly on this webpage, to help the Indian and foreign entrepreneurs/stakeholders interested.
To make the starting a business easier and cheaper, MCA most recently introduced the following measures aiming at faster and cheaper incorporation of companies in india with efficient support of MCA Portal and its SPICE (Simplified Proforma for Incorporating Company Electronically) service:
- RUN (Reserve Unique Name) Web-Service: Available at www.mca.gov.in, at the prescribed fee of Rs.1000/- per form submission, this recently launched RUN service facilitates easier and faster reservation of a new company name, even before obtaining DSC and DIN by the applicant entrepreneur. This RUN Form may also be used for reserving a new name for an already registered company, i.e., for changing the name of an existing company. But, the RUN form permits only one choice of company name at a time (unlike the form INC-1 which permitted as many as six choices). The proposed company name thus approved will be intimated to the applicant through the email address given by him on the MCA Account, and will be valid for Twenty days and Sixty days respectively for the new company and the existing registered company, counted from the date of approval of the same. Within this period, the applicant is then required to file the SPICE e-Form INC-32 for incorporation of the new company. There is now no requirement of filing the Form INC-7, even in case when the number of subscribers is more than Seven. The MoA and AoA will be filed along with this e-Form INC-32 in the respective formats provided given in the Schedule First to the Companies Act, 2013.
- Zero Company Incorporation Fee: MCA has made the incorporation of companies faster and cheaper by eliminating the prescribed governmental fee for incorporation of a company. This 'zero incorporation fee' is applicable to all types of companies (including LLPs), the individual authorized capital of which is less than or equals ₹Ten Lakh. However, the Stamp Duties applicable for eMOA and eAOA are still levied, according to the State of incorporation.
- Easier and Faster DIN Allotment: The SPICe e-Form INC-32 also facilitates acquiring DIN, but this will be allotted only at the time of appointment of the director to the newly registered company. The Form DIR-3 can now be used by the existing companies for the purpose of adding a director.