To simplify the company registration procedure in India, Ministry of Corporate Affairs (MCA) had introduced Simplified Proforma for Incorporating Companies Electronically (SPICe) in October 2016. Thereafter in January 2016, MCA had released notification wherein it made it mandatory to state Permanent Account Number (PAN) on Certificate of Incorporation.
In April 2017, Central Board of Direct Taxes (CBDT) had issued press release stating its tie up with MCA to enable issuance of Permanent Account Number (PAN) and Tax Deduction & Collection Account Number (TAN) in just 1 day.
Single window scheme
Below features have been incorporated in SPICe to enable single window clearance for company incorporation:
- DIN applications (max. 3 directors)
- Application for name
- PAN & TAN application
- Filing for registered office of company
Apart from above, optional facility for below registrations have also been included in SPICe:
- Import Export Code (IEC)
- Employees' Provident Fund (EPF) registration
- Employees' State Insurance Corporation (ESIC) registration
Comparative of old and new procedure for company incorporation
Based on our experience with new scheme, the time required for company incorporation has substantially reduced as compared to old procedure:
24 hours turnaround time for authorities
The best part of SPICe scheme is that the government has set 24 hours turnaround time for the authorities. Simultaneous allotment of Certificate of Incorporation (COI), Director's Identification Number (DIN), Permanent Account Number (PAN), Tax Deduction & Collection Account Number (TAN) is done within 24 hours.
MCA press release on SPICe: