SPICe - One Day Company Incorporation: POSSIBLE OR NOT?
The SPICe stands for Simplified Proforma for Incorporating Company Electronically, it is the latest form released by MCA to be used for Incorporation of the company.
What SPICe Covers?
SPICe is a single form used for multiple approvals during Company Incorporation, that are: Director Identification Number, Name Reservation, Incorporation, PAN Number and TAN Number. Thus, filing a single form shall serve you all these purpose that too at the Government Fees of Rs 500 as of now. Impressive, isn't it.
What's the Advantage?
Apart from providing the multiple service as mentioned above, the basic and the crude advantage of using SPICe form is that if you are having a very unique name, the chances of rejection for which are almost zero, then your company may be incorporated within 3-4 hrs of filing of the SPICe form.
What's the Disadvantage?
Like the advantage, the disadvantage is also in name. If the name you filed through the SPICe form gets rejected then all the incorporation documents are required to be uploaded and submitted again for Company Registration. This may even happen while approving the DINs in SPICe form. Huge Task for Professionals.
Can it Incorporate the Company in a Single Day?
Yes, if all the documents are in place and all the details in the SPICe form gets approved, the company shall be registered with in 3-4 hours of filing the Form.
But there is a catch, which makes the company registration in a single day nearly impossible. The number of documents that are required while filing SPICe form are extensive, thus for a person to collate all the documents it nearly takes 3-4 days. Moreover, all the filing is to be done through DSC, thus it takes around 1-2 days for making of DSC of the Directors.
Considering the process, if an entrepreneur thinks to get company registered then following steps need to be taken:
1. Arrange all the documents of the Directors beforehand
2. Arrange the DSCs as well
3. Finalize on the Unique name
4. Check that name and date of birth on all the documents are same
5. Provide immediate response to the Munim Verified Professional
What's the current practice Professionals are following for Company Registration?
As the maximum chances of rejection are in Name Reservation, thus the professionals first apply for two DINs of the Directors and then apply for Name reservation separately. After approval on these documents, the professionals file SPICe form to get the company incorporated.