{"id":41112,"date":"2023-03-11T15:22:02","date_gmt":"2023-03-11T09:52:02","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=41112"},"modified":"2024-05-31T15:28:01","modified_gmt":"2024-05-31T09:58:01","slug":"spice-procedure-for-incorporation-of-new-company","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/spice-procedure-for-incorporation-of-new-company\/","title":{"rendered":"SPICe+ procedure for incorporating a new Indian Subsidiary Company"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-41116 size-full\" title=\"SPICe+ procedure for incorporation of new company\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1.png\" alt=\"SPICe+ procedure for incorporation of new company\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2023\/03\/SPICe-procedure-for-incorporating-a-new-Indian-Subsidiary-Company-1-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Ministry of Corporate Affairs (MCA) has introduced SPICe+ Form and all the connected forms on February 23, 2020, replacing the current SPICe Form and all linked forms with a variety of services to be provided under a single application.<\/span> <span style=\"font-weight: 400;\">The initiatives taken by the Government over the last few years has significantly advanced the process of company incorporation. Their aim for a seamless and fast procedure is now slowly turning into a reality. This, formerly, was a tedious process that involved months of toil and labour. In this article we will discuss about SPICe+ procedure for incorporation of New Company.<\/span><\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\">\n<p style=\"text-align: justify;\"><b>Table of Content<\/b><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#short\"><span style=\"font-weight: 400;\">Short Glimpse<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#is\"><span style=\"font-weight: 400;\">What is e Form SPICe+?\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#of\"><span style=\"font-weight: 400;\">What are the benefits of SPICe+?<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#and\"><span style=\"font-weight: 400;\">Difference between SPICe and SPICe +\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#to\"><span style=\"font-weight: 400;\">Is it mandatory for every company to follow the SPICe+ process for incorporation of a company?\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#features\"><span style=\"font-weight: 400;\">Features of SPICe +<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#meaning\"><span style=\"font-weight: 400;\">Meaning of Subsidiary Company<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#for\"><span style=\"font-weight: 400;\">Process for incorporating new Indian Subsidiary Company\u00a0<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#the\"><span style=\"font-weight: 400;\">Procedure after filling the SPICe+<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"#conclusion\"><span style=\"font-weight: 400;\">Conclusion<\/span><\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"short\"><b>Short Glimpse<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In accordance with the Companies (Incorporation) Amendment Rules, 2020 MCA has taken a step for speeding up online company registration in India in order to encourage the ease of doing business. The Ministry of Corporate Affairs (MCA) has introduced SPICe+ Form and all the connected forms on February 23, 2020, replacing the current SPICe Form and all linked forms with a variety of services to be provided under a single application. This is applicable to all new Indian Subsidiary Company starting from February 23, 2020.<\/span><\/p>\n<h2 id=\"is\"><b>What is e Form SPICe+?\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">SPICe+ is an online application introduced by the Ministry of Corporate Affairs in February 2020. It is an upgraded version of the earlier SPICe (Simplified Proforma for Incorporating Company Electronically) form, which was introduced in 2016 to facilitate the incorporation of new companies in India. The SPICe+ form includes all the features of the SPICe form and offers several additional features, making it a comprehensive and user-friendly online application for entrepreneurs.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The SPICe+ form is a single-window application that offers 10 services of the Ministry of Corporate Affairs, including incorporation of a company, allotment of DIN (Director Identification Number), PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), GSTIN (Goods and Services Tax Identification Number), EPFO (Employee Provident Fund Organisation), ESIC (Employees&#8217; State Insurance Corporation), and opening of a bank account.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">SPICe+ is a part of various initiatives undertaken by the Government of India towards Ease of Doing Business (EODB). SPICe+ form is an integrated webform and an advanced version of the previous SPICe form (e-form INC-32). SPICe+ webform offers services by Central Government Ministries &amp; Departments. (Ministry of Corporate Affairs, Ministry of Labour &amp; Department of Revenue in the Ministry of Finance) and three State Governments (Maharashtra, Karnataka, West Bengal), thereby saving as many procedures, time and cost for Starting a Business in India.<\/span><\/p>\n<h2 id=\"of\"><b>What are the benefits of SPICe+?<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The SPICe+ procedure offers several benefits to entrepreneurs looking to start a new business in India. Some of these benefits include:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Single-window application:<\/b><span style=\"font-weight: 400;\"> The SPICe+ form is a single-window application that offers 10 services of the Ministry of Corporate Affairs, making it a comprehensive and user-friendly online application.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Faster processing<\/b><span style=\"font-weight: 400;\">: The SPICe+ procedure offers faster processing of applications as it is an online application that eliminates the need for physical submission of documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reduced paperwork<\/b><span style=\"font-weight: 400;\">: The SPICe+ form eliminates the need for physical submission of documents, reducing the paperwork and making the process of incorporation simpler and quicker.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Digitally signed documents<\/b><span style=\"font-weight: 400;\">: The SPICe+ form generates digitally signed documents, making it easier for entrepreneurs to access and share the documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Easy integration<\/b><span style=\"font-weight: 400;\">: The SPICe+ form is integrated with various government departments, making it easier for entrepreneurs to complete the incorporation process.<\/span><\/li>\n<\/ul>\n<h2 id=\"and\"><b>Difference between SPICe and SPICe +\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">While SPICe is an eForm,\u00a0SPICe+\u00a0is an integrated Web form offering 10 services by 3 Central Govt Ministries &amp; Departments. (Ministry of Corporate Affairs, Ministry of Labour &amp; Department of Revenue in the Ministry of Finance) and One State Government (Maharashtra), thereby saving as many procedures, time and cost for <\/span><a href=\"https:\/\/www.cagmc.com\/sole-proprietorship-registration\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Starting a Business<\/span><\/a><span style=\"font-weight: 400;\"> in India.\u00a0SPICe+\u00a0is part of various initiatives and commitment of Government of India towards Ease of Doing Business.<\/span><\/p>\n<h2 id=\"to\"><b>Is it mandatory for every company to follow the SPICe+ process for incorporation of a company?\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Every company incorporated with effect from 23rd February, 2020 is required to make an application for reservation of name and incorporation through the web service SPICe+. Name(s) of a company can be reserved in Part A of SPICe+.<\/span><\/p>\n<h2 id=\"features\"><b>Features of SPICe +<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">SPICe+ is a web application form for incorporation which can be accessed post login on MCA website (www.mca.gov.in). SPICe+ offers 10 services which can be divided into two parts as follows:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Part A provides for the Reservation of the name of the company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Part B offers other nine services which are as follows:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Incorporation of Company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">DIN allotment (even if the Directors do not have DIN, the DIN can be obtained simultaneously for up to 1 in case of OPC, 2 in case of Private, 3 in case of Public and 5 in case of Producer companies).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory issue of <\/span><a href=\"https:\/\/www.cagmc.com\/how-to-apply-for-instant-pan-card\/\"><span style=\"font-weight: 400;\">Permanent Account Number (PAN)<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory issue of Tax Deduction and Collection Account Number (TAN).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory issue of Employees Provident Fund Organisation registration (EPFO).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory issue of Employees State Insurance Corporation registration (ESIC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory Opening of Bank Account for the Company (At present selected few banks have been integrated with SPICe+ for opening a Bank account).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Mandatory issue of Profession Tax registration (in State of Maharashtra and Karnataka only).<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 id=\"meaning\"><b>Meaning of Subsidiary Company<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A Subsidiary Company is a company that is owned and controlled by another company, known as the parent company. In India, a Subsidiary Company is incorporated under the Companies Act, 2013, and is subject to the same regulatory and compliance requirements as any other company. A Subsidiary Company can be wholly owned or partially owned by the Parent Company and can be set up for a variety of reasons, including to expand the parent company&#8217;s business operations or to enter into new markets.<\/span><\/p>\n<h2 id=\"for\"><b>Process for incorporating new Indian Subsidiary Company\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The following steps are to be followed when filing the SPICe+ Form for the Indian Subsidiary Company registration:\u00a0\u00a0\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sign in to the <\/span><a href=\"https:\/\/www.mca.gov.in\/MinistryV2\/spiceplusdemo.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">MCA Portal<\/span><\/a><span style=\"font-weight: 400;\">. Click on MCA service&lt; Company Service<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you are submitting a new application, click New Application.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">By clicking on an existing application, the applicant can access the application number and the proposed\/ approved name of the Indian Subsidiary Company.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When the applicant chooses the New Application, SPICe+ Form Part A will appear, which includes Name Reservation and details like type, class, category, sub-category, the company\u2019s primary area of industrial activity, a description of the primary area, and preferred name for the company needs to fill.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To enable the first level of automatic scrutiny of the Proposed Name as per name rules, click on the auto-check button.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After completing Part, A, the applicant has the choice to either submit it for name reservation and move forward with incorporation or cancel.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If the applicant selects the option to Proceed for Incorporation that is Part B. Enter the basic information like PAN and TAN, as well as the company\u2019s registered or correspondence address, subscriber and director data, and other details relating to the proposed Indian Subsidiary Company. The applicant should upload all documents required for company registration in India and optional attachments in the web form. Click on the \u201csave and continue\u201d button. Each section of Part B includes separate check form validation.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Select on the check the boxes next to each declaration and then press the pre-scrutiny button.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Click on the \u201csubmit\u201d button if the pre-scrutiny is successful.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A confirmation message will be sent to the applicant after successful submission.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Now, the applicant has downloaded the PDF of SPICe+ Part B for attaching the DSC and also all linked forms. Once the DSC is attaching again login to MCA and upload the SPICe+ Form.<\/span><\/li>\n<\/ul>\n<h2 id=\"the\"><b>Procedure after filling the SPICe+<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Once the SPICe+ is filled completely with all relevant details, the same would then have to be converted into pdf format, with just a click of the mouse button, for affixing DSCs. Thereafter all digitally signed applications can be uploaded along with the linked forms as per the hitherto process.\u00a0<\/span><\/p>\n<h2 id=\"conclusion\"><b>Conclusion\u00a0<\/b><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Ministry in order to achieve the objective of Ease of Doing Business have modified and simplified the process of starting a business in India. This amendment of providing various services in a single application on a web-based platform has resulted in saving time and cost for forming a company in the country.<\/span> <span style=\"font-weight: 400;\">The foreign nationals seem more interested in registering their subsidiary company in India because of the launch of the SPICe+ Form for registration of the new subsidiary company.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This form can be resubmitted in the same process mentioned in this blog. Under the SPICe+ form all types of Indian Subsidiary <\/span><a href=\"https:\/\/www.cagmc.com\/private-limited-company\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Company Registration<\/span><\/a><span style=\"font-weight: 400;\"> like a branch office, Liaison Office, etc. can be incorporated.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs (MCA) has introduced SPICe+ Form and all the connected forms on February 23, 2020, replacing [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":41116,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[70],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - 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