The government has steadily been working to promote the growth of startups in India. To ease up the process of incorporating a startup, The Ministry of Corporate Affairs (MCA) has made certain amendments in its incorporation rules on 29th December 2016. The changes are aimed to simplify the incorporation process without burning a hole in your pocket.
The significant changes in the rules have been listed out as follows:-
Simplified Proforma for Incorporating a Company Electronically (SPICe) Forms has been made mandatory for incorporation (with up to 7 subscribers) with effect from 1st January 2017.
The Filing Fees has been slashed down from Rs 2000 to mere Rs 500.
Instead of three, the number of required r-submission is now two as
form INC-2 is deprecated.
Companies with more than seven subscribers and Part 1 companies are required to use INC-7 during incorporation process.
With effect from 15th January 2017, The revised INC-7 will be available
on the portal itself for the purpose of filing.
What do you think about these amendments made by the government and its impact on the process of incorporation? Let me know in the comments section!