MCA gives relaxation in SPICE Form Government Fee
The Ministry of Corporate Affairs frequently makes amendments to various types of provisions under Companies Act and related laws for increasing the convenience and enhancing the transparency in the corporate scenario. Recently, MCA has made an amendment to the Companies (Incorporation) Rules, 2014. These are hereby referred to as the Companies (Incorporation) Second Amendment Rules, 2019.
The changes have been made with respect to the rules regarding the shifting of the Registered office and government fee for SPICE Form while Company incorporation.
- In the context of shifting of the Registered office, the MCA has now made it mandatory for the companies to advertise about shifting of the Registered office in any widely read English as well as Regional newspaper of the place where the office is located.
- Besides, the exempt limit of total capital in case of SPICE Form government fee has been raised to ₹15 lacs from ₹10 lacs.
The SPICE Form is to be filed for FastTrack Company formation.
#1. How the rules regarding the shifting of the Registered office are changed?
The Ministry of Corporate Affairs has made changes to the Companies (Incorporation) Rules, 2014.
Under Rule 30(5) of the said rules, the phrased “with the widest circulation” has been replaced with the words “with wide circulation”.
#2. What does that mean?
The aforesaid amendment is in respect of shifting of the Registered office of a company.
- As per the Rule, whenever a company decides to shifts its Registered office to some other region, which might be situated in some other state, it has to notify the same in a distinguished English as well as Regional newspaper, well-known in the place where the office is located.
- This has to be done in the interest of the stakeholders of the company situated in that region.
- As per the new rule, the company decided to shift its Registered office has to publish Advertisement regarding the same in Form INC-26 in-
- A local newspaper in regional language, and
- An English newspaper, of wide circulation in the State where the registered office is situated.
- This has to be advertised 30 days before the filing of the application for the shift of Registered office in the Form INC-23.
- Earlier, this Advertisement was supposed to be published in the regional and English newspapers of widest circulation, i.e. most distinguished newspapers in that region.
#3. What change has been made to SPICE Form government fee?
The MCA has also made changes regarding SPICE Form government fee.
- Earlier, the companies with a nominal capital, not more than ₹10 lacs were exempted from government fee for filing SPICE Form.
- Now the limit of nominal capital has been increased to ₹15 lacs for exemption from SPICE Form government fee.
#4. What is the SPICE Form?
SPICE is an acronym for Simplified Proforma for Incorporating Company Electronically. The SPICE or Form INC-32 is a form introduced by MCA for fast company formation with a single application regarding reservation of company name, new company incorporation and DIN allotment.
If you want any sort of guidance regarding the process of company formation, you can feel free to contact our business advisor at 8881-069-069.
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