HomeLAWS & SCHEMESMCA SPICe+ Form Update | Compulsory PF ESI For New Company

MCA SPICe+ Form Update | Compulsory PF ESI For New Company

The Ministry of Corporate Affairs (MCA) released a new circular on 9th February 2020. This circular introduces a new SPICe+ form. This new SPICe+ form aims at ease of doing business for old and new firms. This updated SPICe+ will replace the previous SPICe form. Read on to find out an in-depth analysis of this update.

What is the SPICe+ form?

SPICe stands for Simplified Proforma for Incorporating a Company Electronically. It is a web-based application form which is useful for incorporating or registering a new company with the MCA. “Company” in this case can stand for a one-person company, a private limited company, a public limited company, a Nidhi company, section 8 company or producer company. These types of companies were required to register with the MCA via a SPICe form earlier.

But the new SPICe+ form replaces the older SPICe form. It is a 22-page integrated web form which among other things offers ten services by three Central Government Ministries and Departments. These include the Ministry of Corporate Affairs, Ministry of Labour and Department of Revenue in the Finance Ministry and one State Government of Maharashtra. This new form will help in saving time on several procedures and thus save time and money for starting a new business in India. It comes into effect from 15th February 2020. Along with this, the MCA has also released an AGILE PRO form, which is a part of SPICe+, for GSTIN/ EPFO/ ESIC/ Profession Tax/ Bank Account.

SPICe INC 32 Form V/S SPICe+ Form

SPICe INC 32 form helps in:

  • Name reservation
  • Incorporation of a new company
  • Applying for Director Identification Number (DIN) allotment

SPICe+ form helps in:

The SPICe + has two divisions – PART A for name reservation of new companies and PART B for other services as follows:

  • PART A
    • Name reservation
  • PART B
    • Incorporation of a new company
    • Applying for DIN allotment
    • Profession Tax (Maharashtra)
    • Bank Account Opening
    • PAN
    • TAN
    • EPFO
    • ESIC
    • GSTIN

The MCA also said the RUN service will be applicable only for change of name of an existing company with effect from February 15.

MCA Notifications Related to SPICe+ Form

  • The Government is bringing in the advanced integrated form SPICe+ as a part of its India’s Ease of Doing Business (EODB) initiatives. MCA is soon going to announce the launch of this advanced form that will facilitate the users with far more options than the current SPICe Form. As soon as the commencement of the new form is confirmed, the entire new name reservations, as well as company incorporation, will only be applied via SPICe+.
  • As the new form is still to be implemented, if reservation or incorporation of company names are in the process via RUN then those may continue to be filed in SPICe form (along with other required documents).
  • If any form is currently marked for resubmission the same can be re-submitted via the existing SPICe form along with the relevant documents required for the same.
  • Owing to some alterations in the existing Reserve Unique Name (RUN) web service, the re-submission option for name reservation is restricted starting from 1st Feb 2020 for imately15 days.
  • As the RUN web services are undergoing the changes, it is advised to the stakeholders to either delay their application for names till the new SPICe+ is implemented or be extra conscious while submitting an application for name reservation or change through the current RUN services.
  • Any RUN application received after 1st February 2020, shall either be approved or rejected based on the checkmarks given by the Central Registration Centre (CRC) officers under jurisdiction of MCA.

Download SPICe+ Form in PDF format

Download SPICe+ form.

Our feedback

Our initial outlook of this update was that it would be very helpful. It would save time, energy and money for new businesses. But upon further retrospection, we see that this form in fact adds burden for the employers. Point 17 of the form states that EPFO and ESIC registration for any new company is mandatory, regardless of the number of employees. No separate issuance of EPFO and ESIC will be available for new companies. The ESIC Act states that registration is mandatory for companies with more than 10 or 20 employees. Meanwhile, the EPFO Act states that registration is mandatory for more than 20 employees. But now new companies have to register for these even if they have zero employees. They will have to process these compliances and pay extra for them as well as towards these employee contributions. Maintainance of these records will also be necessary.

Additionally, Point 18 states that payment of Professional tax will become mandatory for new companies in Maharashtra. All of these pointers come into effect from 15th February 2020. Thus, when the business owners should be focussing on growing their business and doing well by developing new market strategies and ideas, the majority of their time and energy will be spent on maintaining these compliances. This may do more harm than good for new companies. It may also deter people from making new companies until they cross a certain number of employees. Since their business costs will unnecessarily increase.

Watch and share the below video with the #NahiChahiyeHelp to raise your voice for this update.

Join the LLA telegram group for frequent updates and documents.
Download the telegram group and search ‘Labour Law Advisor’ or follow the link – t.me/JoinLLA
It’s FREE!

Heena Siddique
Heena Siddique
Bibliophile. Turophile. Foodie. Tea enthusiast. Shopaholic. Sitcom addict. Movie buff.

1 COMMENT

Related Blogs

Financial Advisor

spot_img

Follow Us

163,762FansLike
467,897FollowersFollow
35,109FollowersFollow
4,089,574SubscribersSubscribe

Jagruk Investor

Jagruk Employees

In the fast-evolving landscape of digital finance, Paytm has long stood as a beacon of innovation and progress, earning accolades as a trailblazer in...

Don't Miss

Recent Comments