It is startling to know that newly incorporated companies as registered with the Ministry of Corporate Affairs rose by 24.30% as compared to the previous financial year. So what has led to more companies being registered? This could be possible due to government’s new initiative of ease of doing business (EODB).
What reforms led to this move?
As part of this new reform, the MCA introduced the new e-SPICE + form, which has proven to be very hassle-free, reducing registration fees and also saving procedural time compared to the old spice form as this form now allows companies to get below services at a glance:
(a) Reservation of Name
(b) DIN Number of proposed directors
(c) PAN & TAN Number of Company
(d) Application for GST Registration
(e) Profession Tax Number of Company & Directors
(f) Application for Provident Fund Registration
(g) Application for Employee State Insurance Registration
(h) Opening a Bank Account Number (KYC Documents need to be submitted after Incorporation)
These above services attributes to three departments or ministries of Central Government which includes Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue, and respective of State Government. The companies no longer have to apply to each of these departments individually, which makes the start-up process very smooth and effortless.
What are the basics to Incorporating a Private Limited Company?
(a) A minimum of 2 Directors shall be required to be appointed, out of which one must be a resident of India.
(b) Minimum 2 Shareholders are needed, although the directors can be the shareholders.
(c) The registered office of the Company shall be a Place of Business in India.
(d) As authorized capital, minimum capital of 1 lakh is required.
(e) Although each shareholder must subscribe to at least one share for registration to ensure a reasonable amount to run the business.