Incorporation of a company through SPICe Form INC 32

Ministry of Corporate Affairs (MCA) has recently introduced E-form INC-32 under SPICe scheme. Rule 38 provides form SPICe which is a Simplified Performa for Incorporating Company Electronically through Companies (Incorporation) Fourth Amendment Rules, 2016 w.e.f.02.10.2016. The said rule prescribes form INC-32 along with e Memorandum of Association in Form No. INC-33 and e Article of Association in Form No. INC-34. The said rule was substituted by the Companies (Incorporation) Fifth Amendment Rules, 2016.

• Reservation of Name
• Incorporation of a new company
• Application for allotment of DIN (up to 3 Directors)
• Maximum details of subscribers are Seven (7). In case of more subscribers, follow the normal incorporation procedure in INC-7.
• No need to file separate form for first Director (DIR-12)
• No need to file separate form for address of registered office (INC-22).
• No need to file separate form for PAN & TAN.

There are certain companies that can use Form INC-32 to be incorporated in India and are as under-

Private Limited Company- Private Limited company is a type of a company in which the owner’s liability is confined to his shares and the limit for the shareholder is 50.

Public Limited Company- Public limited company is a publicly held company whose liabilities are limited and offers its shares to the general public.

One Person Company- One Person company is held in the hands of a single person who is capable to start a one-person economic entity.

Section 8 Company- Section 8 company is similar to trust or society, which are established to promote commerce, science, art, education, sports, research, religion, social welfare, donation, protection of the environment and many other things. These not-for-profit organizations provide profit and the further income is for promoting the company’s objectives. Hence, no dividend is paid to its members.

Producer Company- Producer Company is formed by 10 or more persons or 2 or more institutions engaging in agricultural activities that aim to hike their incomes, support status, and profitability along with the standard of living. Hence SPICe form shall be used

There are several other companies also that fall under the categories of a company limited by shares, a company limited by guarantee or an unlimited company.

The following documents must be filed with SPICe Form INC-32 for incorporation of company-

• Memorandum of Association – Applicable and mandatory only in case of Section 8 company or company with foreign subscribers not having DIN
• Articles of Association – Applicable and mandatory only in case of Section 8 company or company with foreign subscribers not having DIN
• Affidavit and declaration by first subscriber(s) and director(s) – Mandatory in all cases
• Proof of office address
• Copies of utility bills that are not older than two months
• Copy of approval in case the proposed name contains any word(s) or expression(s) which requires approval from central government
• If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy
• NOC from the sole proprietor/ partners/other associates/ existing company
• Proof of identity and residential address of the subscribers
• Proof of identity and residential address of directors

• Form INC-32 is to be used for Incorporation of a company.
• SPICe eMoA and eAoA have to be uploaded as ‘Linked Forms’ to SPICe (INC-32).
• A name which has been approved using RUN service can be entered in SPICe against the field SRN of RUN (Reserve Unique Name). Based on the SRN entered, the Entity type, proposed name and any other relevant fields will be auto-filled by the system. Please use the same user login ID which was used for reserving the name for submitting and uploading SPICe, INC-12 and INC-24 forms.
• In case of more than 7 subscribers, Spice e form shall be filed with Memorandum of Association (MOA) and Article of Association (AOA) as attachment & there is no requirement of DSC in such a case.
• E-Memorandum of Association in Form No. INC-33 and E-Article of Association in Form No. INC-34 shall be used only where the maximum number of subscribers does not exceed 7.
• DSC is mandatory for all subscribers and witnesses in case of filing E-Memorandum of Association in Form No. INC-33 and E-Article of Association in Form No. INC-34.
• Form INC-22 is to be filed within 30 days of its incorporation, in case the registered address is different from correspondence address.
• Subscribers’ photo is not required.
• Two resubmissions are permitted for SPICe forms.
• OPCs can be incorporated using SPICe forms.
• Nidhi Companies can be incorporated using SPICe forms.
• No LLPs can be incorporated using SPICe forms.
• The maximum size of the e-form AGILE file that needs to be uploaded, shall be 6MB
• Applying for PAN / TAN will be compulsory for all fresh incorporation applications filed in the new version of the SPICe form. Fees for PAN is Rs. 110/- and TAN is Rs, 65/- becomes payable.
• MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe, which the stakeholders will be required to download, affix digital signature and then upload both signed forms on MCA21 system as linked forms.