Monday, May 4, 2015

MCA Introduced INC-29 an integrated form for incorporation of Company

MCA is taking steps for simplification of business process in India. MCA has notified the Companies (Incorporation) Amendment Rules, 2015 which shall come into force from 1st May, 2015. Following are the relieves given through Amended Rules 2015:-

1.      Verification of signatures of promoter directors by the professional in Form INC – 10 has done away with and now  Form INC -10  can be filed  Self  attested  and New Format of INC-10 requires  only Photograph of Promoter Director,  Name, Father’s name and address of the First Directors and two specimen signatures only.
2.      An existing Private Company may get itself converted into OPC only if its paid up capital is less than Rs. 50 lacs AND average annual turnover is less than Rs. 2 Crore during the relevant period.
3.      For violation of any rules by OPC, Penalties are now reduced and Penalties for any offence shall be Rs. 5000/-in the first instance and if contravention continues then Rs. 500/- per day till it continues.

An introduction of Integrated single form for incorporation of a company.
MCA has introduced Form 29 from 1st May, 2015 and has simplified the incorporation process. MCA has released the New Integrated Form INC-29  in addition to the existing process of incorporation. INC -29 is a single integrated form for Incorporation to take care of three separate processes in single form i.e Application for DIN, Application for name approval and Application for incorporation of company. This newly Introduced form INC 29 will take care of  allotment of  PAN, TAN & ESI for the proposed Company.

MCA has inserted Rule 36 and New Forms INC-30 and INC -31 are introduced to choose the pre-drafted Memorandum of Association and Articles of Association.  
Fee for the E- Form INC -29 is Rs. 2000/- however for Name Application fee for the existing Form is Rs.1000/- because no separate fee is there for DIN Application if first director or subscriber is not having DIN.  Fee for Incorporation is to be paid separately and in existing forms too registration fee depends upon the Authorized capital of the new proposed company.

In existing forms six names options are given but in NEW INC -29 Form only one name can be applied for approval. Therefore, Applicant has to ensure that the proposed name is as per name availability guidelines & existing trade marks to avoid rejection.

Application for DIN is permissible maximum of three directors through this INC-29 in case first directors or subscribers are not having DIN as on the date of application for registration. In case Directors or subscribers are having DIN then there is no requirement of giving personal details as it already exists in MCA records and DIN number may pre-fill the details of proposed director having DIN.

In existing forms there is a requirement of attaching the Scanned copy of Memorandum and Articles of Association but in this Integrated INC -29  Form -30and Form-31 for pre-drafted memorandum of Association and Articles of Association are  required to be filled in and there is no need  of scanned copy of MOA and AOA  to be attached. 

Incorporation of the company through this integrated form for incorporation INC-29 is optional and this INC-29 form is not available for incorporating Section 8 companies. The New INC-29 Form is running into 15 pages as it looks after the DIN of maximum three Directors and requires the following as attachments:

Mandatory Attachments to Form INC -29 (Integrated form of Incorporation)

1.      Pre-drafted Memorandum of Association as given in Form -30
2.      Pre-drafted Articles of Association having 91 questions with Yes or No options as given in Form 31
3.      Affidavit and declaration by First Directors and subscribers. 

Other Attachments to Form INC -29 (Integrated form of Incorporation)

4.      Proof of Office Address i.e Lease Deed / Rent Agreement  with Rent receipts
5.      Copy of Utility Bill not older than 2 months
6.      Approval of Owner of Trademark or applicant of trademark registration
7.      Proof of Relation
8.      NOC from the Sole Proprietor / Partner/ AOP or Body corporate
9.      NOC from any other person
10.  Certificate of Incorporation of the Foreign body corporate and copy of resolution passed
11.  Resolution Passed by Promoter Company
12.  NOC  from existing Indian Company
13.  Interest of  First Directors in Other Entities ( No interest is also a declaration)
14.  Consent of Nominee
15.  Proof of Identity and residential address of  Subscribers, Nominee & All Applicants 

The INC -29 integrated form for incorporation is a single form and can be resubmitted only for two times so Subscribers will have to take proper care while filing the forms to avoid loss of fee submitted while filing the form. INC -29 Form is a single form and if opted the filing of the following e-forms is not required.
1.      Form DIR-3 – if the proposed directors have no DIN still they need not file an Application for  allotment of DIN
2.      Form INC-1/INC-2  for reservation of name of the company where applicant can give six options or suggested  names of the proposed company.
3.       Form INC-7  an application for incorporation of a company other than One person company
4.       Form DIR-12 Appointment of  Directors
5.      Form INC-22  an information  for the registered office

 However it is optional for the subscribers to opt for INC -29 or other  Forms DIR-3, INC-1/ INC-2, INC-7, DIR-12, INC-22 and because INC -29 is not available  for incorporation of Section 8 Companies all the forms will be  available at MCA website.