Government To Reduce Time Taken For Starting Business; To Introduce New E-Form
A commuter carries a soft briefcase while walking through the central business district in Sydney, Australia. (Photographer: Brendon Thorne/Bloomberg)

Government To Reduce Time Taken For Starting Business; To Introduce New E-Form

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Continuing efforts to further improve ease of doing business, the government will introduce an integrated electronic form for incorporating new companies from Feb. 15, wherein Employees' Provident Fund Organisation and Employees' State Insurance Corporation registration numbers will also be allotted at the same time.

The corporate affairs ministry would introduce the form -- SPICe+ -- to offer 10 services. Currently, the ministry has the electronic form SPICe (Simplified Proforma for Incorporating Company Electronically) and that would be replaced with SPICe+. The 10 services offered through the new form would help in "saving as many procedures, time and cost for starting a business in India," the ministry said in a public notice.

Also read: Economic Survey 2020: Ease Of Doing Business In India—Reality Check

The labour ministry, Department of Revenue in the finance ministry and the Maharashtra government would also be offering certain services through the form. Registration for EPFO and ESIC would be mandatory for all new companies incorporated from Feb. 15. EPFO and ESIC registration numbers would not be separately issued by the respective agencies, the notice said.

Further, registration for profession tax would be compulsory for companies incorporated in Maharashtra from Feb. 15. Besides name reservation and incorporation of a company, EPFO and ESIC registration numbers would be issued. Mandatory issuance of Permanent Account Number, Tax Deduction and Collection Account Number, Profession Tax Registration Maharashtra and opening of bank account for the company concerned would be done through the form.

Director Identification Number and GSTIN, if applied, would also be allotted. GSTIN is the Goods and Services Tax Identification Number. The corporate affairs ministry is implementing the Companies Act and all required filings under the law as well as the incorporation of companies are made through its portal MCA21. The new form would be available on this portal.

"All new companies incorporated through SPICe+... would also be mandatory required to apply for opening the company's bank account through the AGILE-PRO linked web form," the notice said. There are more than 11.5 lakh active registered companies in the country and thousands of companies are getting incorporated every month. Generally, active companies are those which comply with all regulatory requirements, including timely submission of filings.

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