How INC 29 can enable Ease of Doing Business in India

How INC 29 can enable Ease of Doing Business in India - An Analysis. The Companies Act, 2013 was notified on 30th August 2013 and the Ministry of Corporate Affairs [MCA] had notified the majority of the provisions of the Companies Act, 2013 effective from 1st April,2014 and also notified Rules for various chapters of the Act. The notified Rules included the eforms to be filed with RoCs/RDs and HQ towards incorporation of Companies and other event based filing of documents. The eforms under the CA,2013 have gone live on 28th April, 2014. Now you can scroll down below and check more details for "How INC 29 can enable Ease of Doing Business in India"

How INC 29 (Integrated Incorporation Form)

As part of the Government’s drive to improve India’s ranking on the globally tracked parameter of ease of doing business (assessed by World Bank1), INC-29 form has been conceived. This effort has been driven from the PM Office and considered absolutely essential towards achieving the said goal. The Government is looking at ways to improve India’s position to top-50 in terms of ease of doing business globally which is presently at 142nd place. The average time for incorporating a company would be reduced to 24 hours, by INC 29, since a single form would now be equivalent integrating services presently delivered through 5 eforms (viz.DIR- 3/INC-1/INC-2 or INC-7 as the case may be and INC-22) providing following services tothe user in a single step:-

• Allotment of Director Identification Number
• Name reservation for the Company
• Incorporation of the Company

It is experienced that most of the companies incorporated (about 95%) private companies with only two persons as first directors and subscribers. To improve ‘Ease of Doing Business’ in India, the MCA wanted to reduce the number of processes for incorporating a company from the normal process of 3 steps to 1 step through this integrated eform.

Must Read - Key Features of MCA New e-form INC 29

Comparative Table of the normal process vis-à-vis integrated process for incorporation of Companies

Normal Process

Integrated process

3 different applications and 3 steps i.e., Advertisement (i) Application for DIN(DIR-3); (ii) Application for reservation of name(INC-1) and (iii) Application for incorporation (INC- 2 or INC-7) with lot of attachments

One Single form for incorporating a company ( as against 5 forms viz.DIR-3/INC-1/INC-2 or INC-7 as the case may be,INC-22/DIR-12) which will capture all the required information One integrated work item for all the processes resulting into drastic reduction of time taken in incorporation. Drastic reduction/optimization of attachments and processes. It is expected that the time for incorporating a company would get reduced 1 working day

Must Read - MCA INC-29 Single E-Form For Company Incorporation

Features of INC-29:

• One Single form for incorporating a company (as against 5 forms viz.DIR-3/INC-1/INC-2 or INC-7 as the case may be,INC-22/DIR-12) which will capture all the required information;
• Producer companies and New Company(others) are covered;
• Presently, section 8 Company and Part I (Ch. XXI-registration of Unregistered companies) are out of the scope of this form;
• Maximum of 3 applicants for allotment of DIN would be permissible under the form;
• DIN would be processed by the jurisdictional RoC (as against the DIN cell in the existing process);
• Only ‘Single name’ (as against 6 names) would be allowed;
• Articles of Association /Memorandum of Association the templates of which are available in the Companies(Amendment) Rules dated 1st May 2015, could be filled, physically signed, scanned and attached to the form;
• Entire fees including stamp duty becomes payable at the time of filing the form;
• A composite fee of Rs.2000/- shall become payable for the form;
• Stamp Duty as applicable shall become payable;
• Resubmission of the form shall be allowed twice(each time for a maximum period of 15 days as against once in the existing process);
• The form shall either be approved or rejected within 60 days from the date of its filing.
• In case stakeholder wants to avail any of these services separately/independently, he may have to use the existing eforms.
• In case any of the Director has no DIN, then details would be captured and validated while upload of the e-form
• Upon approval of the e-form, DIN would be generated and sent to the applicant.

Must Read - Incorporation of Pvt. Ltd. Company as per Companies Act 2013

Conclusion:

The Companies (Incorporation) Amendment Rules, 2015 has also notified the Templates of Memorandum of Association (INC-30) and Articles of Association (INC-31) and the applicants can make use of these templates while filing the integrated incorporation form. It is expected that the eform INC-29 would be widely used for incorporating companies in India and enable to improve ‘ease of doing business’ rankings.