Starting A New Business? You Will Need Only 1 Form To Fill to Incorporate A New Business
On the occasion of World Labor Day, Ministry of Corporate Affairs (MCA) introduced a major reform for entrepreneurs in India. Effective May 1st, incorporation of a new business will require only one form to be filled, against 8 earlier.
This new form is known as INC-29, and it replaces earlier tedious process of filling out several forms for incorporating a new company.
Hence, from now on, procedure for name availability, Director Identification Number, company in-corporation and other business related information can be submitted using one single form itself.
On conditions of anonymity, a senior official from MCA shared with ET: “Name availability, allotment of Director Identification Number (DIN), company incorporation and commencement of business will now be possible through a single form,”
Earlier, 8 forms were required to fill for incorporating a new business:
- Applications for obtaining a DIN
- Requesting a new Digital Signature Certificate
- Approving the name of the company via INC-1
- A separate form for registration of the company
- Memorandum of understanding document
- Articles of association
- Form INC-22 for sharing details about registered office
- A separate form DIR12 which should be sent to every director
All these formalities are now thing of past, as only INC-29 is now sufficient.
MCA has made this available on their website, and along with that, an instruction kit is being offered, which will help new entrepreneurs to easily fill and submit this form online. As per the instruction kit, this new form INC-29 has been formulated “In pursuance of sections 4,7,12,152 and 153 of the Companies Act, 2013”.
Highlighting the purpose and scope of this form, the document says, “EForm INC-29 deals with the single application for reservation of name, incorporation of a new company and/or application for allotment of DIN. This eForm is accompanied by supporting documents including details of Directors & subscribers, MoA and AoA etc. Once the eForm is processed and found complete, company would registered and CIN would be allocated. Also DINs gets issued to the proposed Directors who do not have a valid DIN. Maximum three Directors are allowed for using this integrated form for allotment of DIN while incorporating a company.”
Last year, we had reported that in the ranking of ‘Easy of Doing Business’, India is ranked at 142 out of 189 countries, which was a fall of 2 ranks compared to 2013. Although PM Modi introduced several labor reforms to ease business process and operations, we needed some major reforms in this sector.
Compared to other business friendly nations such as Singapore and Hongkong, it was really tiresome and tedious process to incorporate a new firm inside India. After this introduction of single form, entrepreneurs will find it super easy to start a new company, and incorporate it.
You can download form INC-29 here (which also contains the instruction kit)