On World Labour Day, the Ministry of Corporate Affairs (MCA) introduced a new integrated e-form which simplifies the whole procedure of registering a company in India.
The Indian Government has taken a giant leap for start-ups and has eliminated some of the hassles of registering a company in India with the introduction of a new integrated e-form (INC-29), effective from 1 May 2015. This is one of the biggest amendments in the process of setting up a business in India.
The new form replaces a lengthy process to incorporate a company in India. As a result, start-ups are no longer required to fill out a number of different forms and simply have to submit a single form (known as INC-29) for the Name of the Company, Company Incorporation, application for a Director Identification Number (DIN) and to furnish other business related information.
So, at this point, there are two ways you can register a company:
- The new, fast track method (e-form INC-29) You just need to fill out a single form i.e. INC-29 with a fee of Rs.2000 along with the normal registration fees.
- The traditional method with the normal filing fees
Here are some of the important points related to the new form INC-29:
- Submission through the form INC-29 will be managed and processed by a separate department under the control of Ministry of Corporate Affairs. This would enable start-ups to incorporate a company in just 48-hours.
- You can register the following types of companies with form INC-29:
- Private Limited Company
- Limited Company
- One Person Company
- Producer Company
- By filling form INC-29, you can apply for the following:
- DINs for maximum 3 directors (in case there is a structure of 5 directors, it is recommended to get DINs separately and then apply through INC-29 form).
- The name of the company (you cannot apply for more than one name with this form; therefore, it is highly recommended to choose the name with more diligence and care).
- Company registration
- To provide details of registered office and directors
- You can revise the draft Articles of Association (AoA) and Memorandum of Association (MoA) attached with INC-29 by filing e-forms INC-30 and INC-31.
- Two re-submissions are allowed, unlike the traditional method wherein only one submission is allowed.
- Rejection of one form would result in the rejection of all others as well.
- You cannot incorporate a section-8 company (non-profit making company) through form INC-29.
Setting up a business in India has often been a daunting task and entrepreneurs have long complained about the difficulties they face. The Indian government is making serious efforts to create a business friendly environment and make it easy to do business in India.
You can download form INC-29 here.
If you’re not sure how to set up a business in India or would like assistance with completion of form INC-29, QX Corporate Advisors will be pleased to help you.
Please contact Ravi Kurani on +44 845 838 2672 or email firstname.lastname@example.org to discuss further.