Are you planning to start your own company? Know about these new rules before kicking off!!
It’s 2018 and almost each one of us has contemplated starting a company at least once at some point in our lives. Since you are reading this blog, I guess you are also the one. The feeling to have a company to ourselves is beyond imagination. Am I right Our journey towards entrepreneurship starts simply with registering a company.
There is good news for the startup enthusiasts; Indian government has introduced some new amendment in company registration act and it will surely give you a head start in kicking off your own journey towards being your own boss.
-
- Digital India’s RUN (Reserve Unique Name) – Adding another feather into the cap of Digital India, Ministry of Corporate Affairs (MCA) have introduced a Web Service named “RUN- Reserve Unique Name” for company name reservation. Government of India (GOI) has introduced RUN in the form of web form which has replaced INC-1 form or the name incorporation directly through SPICe.
Major Features of RUN
It doesn’t require DIN (Director Identification Number) or DSC (Digital Signature Certificate to initiate the process of name incorporation.- Irrespective of the name approval, you will have to pay INR 1,000 for submitting the RUN form.
- If the name has been approved it will be valid up to 20 days for the new company, starting from the day of approval and for an existing company, it will be valid up to 60 days.
- RUN only gives you the option of registering only one name while INC-1 had provision for up to 6 names.
- Digital India’s RUN (Reserve Unique Name) – Adding another feather into the cap of Digital India, Ministry of Corporate Affairs (MCA) have introduced a Web Service named “RUN- Reserve Unique Name” for company name reservation. Government of India (GOI) has introduced RUN in the form of web form which has replaced INC-1 form or the name incorporation directly through SPICe.
-
- NO COST Company Incorporation
Now there won’t be any company incorporation cost under SPICe (Simplified Proforma for Incorporating Company Electronically), e-Memorandum of Association (e-MoA) and e-Articles of Association (e-AoA); which will in turn help startups to save the cost and have a formal registration for their company. The stamp duty is still important to pay which will depend on the state of incorporation of the company.
- NO COST Company Incorporation
- Adding DIN (Director Identification Number)
If you are applying for DIN (Director Identification Number) then you will have to take the SPICe route. As per MCA, the details of the directors along with valid identity and address proof needs to be filled in the SPICe Form.In case of the existing company, if you are adding a new director then you will have to use DIR-3 forms. This form provides furnishing the CIN (Corporate Identification Number) and a declaration of DIN for the appointment of the new director.
The above provision has surely brought some relief in founding a company to the newbie entrepreneurs. As they say, Building a business is a journey where we need to take one step at a time.