Empowering Start-ups: Government Initiatives for Easy Company Incorporation in India

The Government of India has planned a number of steps to simplify and facilitate the registration of companies such as start-ups across the country, including in small and medium cities.

Some of the significant measures are mentioned below-

1.A single united new web form called SPICe+ along with AGILE PRO-S has been established. This form delivers eleven services related to – Starting a business. followings are the eleven services:

(i) Name Reservation

(ii) Incorporation

(iii) Permanent Account Number (PAN)

(iv) Tax Deduction Account Number (TAN)

(v) Director Identification Number

(vi) Employees’ Provident Fund Organisation (EPFO) Registration

(vii) Employees’ State Insurance Corporation (ESIC) Registration

(viii) Goods and Services Tax (GST) number

(ix) Bank Account Number

(x) Profession Tax Registration (Mumbai, Kolkata and Karnataka)

(xi) Delhi shops and Establishment Registration.

2.There is Zero fee charged if someone incorporated any companies with authorized capital up to Rs. 15 lakh or with up to 20 members where no share capital is applicable.

3.A Central Registration Centre (CRC) was made for name reservation and incorporation of companies and Limited Liability Partnership (LLP).

4.Central Board of Direct Taxes (CBDT) has merged with LLP incorporation form called FiLLip to provide PAN/TAN at the time of Incorporation of LLP itself.

Startup recognition’s process of application was smooth and made all digital via an interactive Startup India portal and the National Single Window System (NSWS) making it available from any part of the country. also the documentation process for identification is simplified for self-certification. to promote start ups workshops are organised all over the states and UTs.

The Ministry has launched various digital initiatives to increase transparency and quickness in service delivery to reduce burden and enhancing user experience. Some of them are below mentioned: –

• The Centre for Processing Accelerated Corporate Exit (CPACE) for centralized processing of voluntary closure of Companies or LLPs.
• The MCA21 V3 platform facilitates Ease of Doing Business, and has introduced web-based forms, enabling real-time validation of the data entered by stakeholders. to support stakeholders further there is a live chat feature providing real-time assistance to enhance the overall user experience.
• The E-Adjudication system provides a online platform for the processing of adjudication cases  to make sure efficiency and transparency.
• Stakeholders can also raise tickets on the MCA21 portal to give feedback if any related to the challenges faced.
• The Central Processing Centre (CPC) was operationalized will came into effect on February, 16, 2024 for quicker and centralised handling of various electronic e-forms filed earlier with jurisdictional ROCs under Companies Act, 2013.

Companies (Amendment) Act, 2017, the requirement of Section 7(1)(c) in respect of furnishing ‘affidavits’ by the first directors and the subscribers at the time of incorporation regarding their not being convicted of offences indicated therein was changed. After the changes, directors and the subscribers are required to provide a “declaration” in this regard. Streamlining through amendment in rules and forms is carried out from time to time based on suggestions of stakeholders.