/ Company Law Compliances

REGISTRATION OF A COMPANY BY FILING JUST ONE FORM – OFFICIAL AMENDMENTS IN THE COMPANIES (AMENDMENT) BILL, 2014 ( INC-29: STARTING MAY 2015,)

REGISTRATION OF A COMPANY BY FILING JUST ONE FORM – OFFICIAL AMENDMENTS IN THE COMPANIES (AMENDMENT) BILL, 2014 ( INC-29: STARTING MAY 2015) 

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for moving of the following Official Amendments in the Companies (Amendment) Bill, 2014 :-

  • Doing away with the requirement for filing a declaration by a company before commencement of business or exercising its borrowing powers and
  • rationalizing the procedure for laying draft notifications granting exemptions to various classes of companies or modifying provisions of the Act in Parliament, in order to ensure speedier issue of final notifications.

These Official Amendments will address issues related to ease of doing business and put in place a speedier process for approval of draft notifications for providing exemptions etc. from specific provisions of the Act to a class of companies.

INC-29:  Starting May 2015, Registration of a company by filing just one form.

As one of the biggest reform in the process of setting up company in India, MCA recently in its webcast announced the introduction of a new e-form INC-29, for filing application for registering a company. So now instead of filing e-forms DIN-3, INC-1, INC-7/2, INC-22 & DIR-12, we can only file form INC-29. It is a single form in place of 5 forms. The e-form is scheduled to be introduced w.e.f 1st May 2015.

It is to be noted that with the introduction of INC-29, the existing e-forms i.e. DIN-3, INC-1, INC-7/2, INC-22, DIR-12, will continue to function as it is. The single form facility will be in addition to the current process of registering a company.

Apart from e-form 29, MCA is also going to introduce e-form 30 & 31 for filing Memorandum of Association & Articles of Association.

So now a company can be registered in the following 2 ways:

1st Option- the regular route: 2nd option- the faster route
Filings:

  • Apply for Director Identification Number (DIN) for Directors vide DIR-3
  • Check for name availability vide INC-1
  • File details of promoters, directors and registered office in form INC-7/2, INC-22 & DIR-12
  • Fees: Normal registration fees for each form
 Filings:

  • File a single form i.e. INC-29 for the following;§  Application for applying DIN for maximum 3 Directors§  Application for Name availability (for single name only)§  Application for company registration.
  • For furnishing details of Directors and registered office
  • Fees: Normal registration fees for each form + Rs 2000
 

KEY POINTS RELATED TO NEW INC-29.

  • Since through INC-29, you are applying for 3 approvals i.e. Name, DIN and company registration, if any one fails all the others also fails. For example if there are issues in DIN application, then the entire application will be rejected and you have to file afresh.
  • DIN for only 3 Directors can be applied at one time. For example a company has 5 Directors, 4 doesn’t have DIN then this form can’t be filed but in case person proposed to be appointed which don’t have DIN are upto 3 , then this form can be filed irrespective of the fact that there are 12 other Directors , who have DIN.
  • Only 1 name is allowed. So while applying, applicant has to undertake the necessary diligence regarding the name keeping in mind the guidelines issued by MCA. In case the name applied is rejected then you have the option to re-submit it for 2 more times.
  • Only 2 re-submission are allowed. In case the form is rejected, refund needs to be applied through Refund Form.
  • All attachments which are required to be filed with INC-1, INC-7, INC-22, DIR-12 will also be filed with this form.
  • In order to save time, it is advisable that the applicant should first apply DIN separately and then file e-form 29.
  • Separate Queue for this form at ROC back office.
  • Template Memorandum of Association and Template Articles of Association;  Option is available for amending the MOA&AoA;
  • This form is not meant for Companies to be registered under Section 8.
  • This form is not a STP Form and needs to be processed by respective RoC.
  • Certificate of Commencement of Business will continue.

Hope the information will assist you in your Professional endeavors. For query or help, contact: info@caindelhiindia.com or call at 011-43520194

**********************************************************

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.