Integrated e-Form INC-29 for Company Incorporation and Ease of doing business

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INC 29Analysis of integrated e-Form INC-29 for Company Incorporation and Ease of doing business

With the introduction of the INC-29, the Ministry of Corporate Affairs (MCA) has begun to make good on its promise to improve India’s ranking on the World Bank’s Ease of Starting a Business Index to within the top 50 from the current 158.

The INC-29 form for company registration, combines the application for DIN allotment, name reservation, incorporation and even PAN & TAN, while making the process faster and simpler. As the entire incorporation process is in a single form, correct filing could mean approval in 48 hours. Compared to the old process, this helps in formation of company saving a lot of time, if properly implemented.

Purpose of the eForm – eForm INC-29 deals with the single application for reservation of name, incorporation of a new company and/or application for allotment of DIN. This eForm is accompanied by supporting documents including details of Directors & subscribers, MoA and AoA etc. Once the eForm is processed and found complete, company would be incorporated with Corporate Identification Number (CIN) and the Certificate of Incorporation would be issued. Also DINs gets issued to the proposed Directors, who do not have a valid DIN. Maximum three Directors are allowed for using this integrated form for allotment of DIN while incorporating a company.

Key Features of e-form INC-29 

  1. The integrated e-Form INC-29 is available with effect from 01.05.2015 for One Person Company, Private Company as well as Public Company.
  2. INC-29 does away with filing of multiple applications/forms saving time and payable fees.

It combines the processes relating to:-

  • Allotment of Director Identification Number (DIN) (up to three Directors),
  • Incorporation of a company, and
  • Appointment of first Directors of the company.

3. The new e-Form does away with the need for reserving a name for the company prior to applying for its incorporation.

  1. Declarations are in-built in the e-Form. Separate attachments containing such declarations are not required.
  1. The e-Form is enabled for future integration with e-Biz platform of DIPP for generating applications for PAN, ESIC and EPFO numbers on the platform and therefore provides a single interface for these applications also.

 

Forms no longer to be filed individually as per the new Form INC 29:

Continued

Government wants to reduce time for registering company

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During the past one year, Corporate Affairs Ministry has taken a number of steps, and is further streamlining processes and regulatory framework, to reduce the overall time taken for incorporating a company as a part of ‘ease of doing business’ effort, Finance Ministry has said.
The Government of India proposes to bring down the average number of days required for incorporating a company to one to two days, a move aimed at further improving ‘ease of doing business’ in the country.

During the past one year, Corporate Affairs Ministry has taken a number of steps, and is further streamlining processes and regulatory framework, to reduce the overall time taken for incorporating a company as a part of ‘ease of doing business’ effort, Finance Ministry said in a statement.
As a result of the many steps, the average number of days taken for incorporation of a company has come down significantly from 9.57 days in December, 2014 to 4.51 days in November, 2015.
“It (Ministry of Corporate Affairs) is targeting that the average number of days would be further reduced to one to two days for approval in normal cases,” the statement said.

Giving details of the step, it said the introduction of an Integrated Incorporation Form INC29 and tighter monitoring of Registrar of Companies’ (ROCs’) performance has resulted in faster approvals and lesser number of clarifications being asked from the stakeholders.
The Corporate Affairs Ministry will soon introduce a new version of Form INC29, incorporating suggestions received from the stakeholders, allowing up to five directors to be appointed and greater flexibility in proposing a name for a company, it said.

“This will allow an even more wider use of this integrated Form, which is already gaining popularity,” the statement added.

Further, the rules with regard to reserving and approving of names for companies are also being simplified, and a centralised new process will be introduced soon for strictly time bound approval of names for companies.

Source: http://www.dnaindia.com/money/report-government-plans-to-reduce-average-time-for-registering-a-company-to-1-2-days-2154784

Govt to further simplify ITR forms, sets up committee

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The government is looking to further simplify income tax return forms to help taxpayers fill them without seeking help from experts and the revenue department has set up a committee in this regard.

The committee, according to sources, will be headed by a joint secretary level officer and would include chartered accountants and tax experts.

“The tax department is trying to further simplify the return form so that no outside help is needed by those who want to file returns on their own,” a source said.

The effort would be to come out with a simple formula for indexation to help assessees compute capital gains on sale of assets, the source added.

“The Committee would also look into the possibility of reducing the number of pages in the return form,” the source said.

The Income Tax department had in June come out with a simplified tax return form for salaried class. Filers now have to disclose the total number of savings and the current bank accounts held by them at any time during the previous year (excluding dormant accounts).

The form also has space to fill up the IFSC code of the bank and in an additional feature, tax filers have been given an option to indicate their bank accounts in which they would want their refund credited. The ITR also has sought the Aadhaar number of filers.

The tax department had come out with simplified ITR after experts raised objections to the 14 page form which was notified earlier in the year.

The earlier form sought details of bank accounts and foreign visits and following controversy, the Revenue Department announced putting them on hold.

Source: http://www.business-standard.com/article/pti-stories/govt-to-further-simplify-itr-forms-sets-up-committee-115112200147_1.html

Additional Fees for delay in e-filing under Companies Act, 2013

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MCA had changed the structure of Additional Fees to be levied for delay in filing E Forms over the companies while filing their Balance Sheet and Annual Returns with concerned Registrar of Companies through MCA Portal. Such change of Additional Fee Structure encouraged the Corporate to file their returns as early as possible so that they can avoid the heavy additional fees. That has resulted in increase the percentage of filing within the due time.

Pursuant to rule 12 of the Companies (Registration of Offices and Fees) Rules, 2014, following table of additional fees shall be applicable for delays in filing of the forms other than for increases in Nominal Share Capital

Sl  No. Period of delay  Additional fees for the period of delay
01 Up to 15 days (sections 93,139 & 157)         One time
02 More than 15 days and up to 30 days (Sections 93, 139 & 157) and up to 30 days in remaining forms.         2 times of normal filing fees

 
03 More than 30 days and up to 60 days         4 times of normal filing fees
04 More than 60 days and up to 90 days         6 times of normal filing fees
05 More than 90 days and up to 180 days         10 times of normal filing fees
06 More than 180 days and up to 270 days         12 times of normal filing fees

 

Further Note:

1) The additional fee shall also applicable to revised financial statement or board’s report under sections 130 and 131 of the Act and secretarial audit report filed by the company secretary in practice under section 204 of the Act.

(2) The belated filing of documents /forms (including increasing in nominal capital and delay caused thereon) which were due to be filed whether in Companies Act, 1956 Act or the Companies Act, 2013 Act i.e due for filing prior to notification of these fee rules, the fee applicable at the time of actual filing shall be applicable.

(3) Delay beyond 270 days, the second proviso to sub-section (1) of section 403 of  the Act may be referred.

MCA asks companies to submit annual filings on time

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To ensure that there is no last-minute congestion on its e-filing portal, the Ministry of Corporate Affairs (MCA) has asked companies to submit their financial statements and annual returns at the earliest.

The Ministry’s message assumes significance as this would also be the first year that corporates would be making their filings under provisions of the Companies Act, 2013 — which came into effect from April 1, 2014.

“To avoid last minute rush and system congestion on the MCA 21 portal on account of annual filings during month of October/November 2015, companies are requested to file their financial statements and annual returns at the earliest without postponing it to the last few days permitted for the same,” the Ministry said in a notice.

MCA 21 is the portal for companies to submit their filings electronically to the government under the Companies Act.

A raft of provisions have been introduced in the new law that replaces the nearly six-decade old Companies Act, 1956.

In terms of compliance, companies have slightly different requirements under the new Act and new electronic forms (e-forms) have been issued by the Ministry.

The Ministry, which is implementing the Companies Act, had earlier faced glitches with respect to functioning of MCA 21 due to various factors.

Most provisions of the Companies Act, 2013 came into force from April 1.

Among others, corporates are now required to furnish Permanent Account Number (PAN) while submitting their annual returns to the government, a move that would help in sharing of information between different departments.

So far, companies were not asked to provide PAN in the electronic form used for filing annual returns.

A new column has been inserted for providing PAN in the MGT-7 form — which is used for submitting the annual returns.

Meanwhile, the Ministry has already made a draft of changes to the Companies Act, 2013. Besides, various rules have been amended.

Amid concerns expressed in various quarters about certain provisions in the new Act, a high-level panel has also been set up to look into the issue.

Income Tax E-Filing Process – At a glance

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Steps for Income Tax E-Filing:

 

 

  1. Select appropriate type of Return Form – ITR and download appropriate Return Form from https://incometaxindiaefiling.gov.in/
  2. Fill your particulars of name, address. PAN Number, date of incorporation (date of birth, in case of individuals), sources of income and the amounts and other details in the ITR return offline and generate a XML file
  3. Register and create a user id/password. User id is always your PAN number.
  4. Login and click on relevant form on left panel and select “Submit Return”
  5. Browse to select XML file and click on “Upload” button
  6. On successful upload, acknowledgement details would be displayed. Click on “Print” to generate printout of acknowledgement/ITR-V Form.
  7. In case the return is digitally signed, on generation of “Acknowledgement” the Return Filing process gets completed. You may take a printout of the Acknowledgement for your records.
  8. Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same.
  9. The e-verification can be done using Aadhar number or through online banking. A duly verified ITR-V form should be submitted with the local Income Tax Office within 15 days of filing electronically. This completes the Return filing process for non-digitally signed Returns.
  10. For any assistance in filing the paper copy of the return please contact the Public Relations Officer of the local Income Tax Office.

Incorporation of Companies under Companies Act, 2013

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Steps for Incorporation of company under Companies Act, 2013

 

  1. Obtaining Digital Signature Certificate

For the Directors of the company, we have to obtain the Digital Signature Certificate (DSC).

For the DSC, the following documents are required:

  • For Indian Nationals: PAN Card (mandatory) and Voter’s identity card or Passport copy or Driving License copy
  • For Foreign nationals and Non Resident Indians: Passport Residential proof such as Bank Statement, Electricity Bill, Telephone / Mobile Bill; Provided that Bank statement Electricity bill, Telephone or Mobile bill shall not be more than two months old. Foreign director’s specimen signature and latest photograph duly verified by the banker or notary.
  1. Obtaining Director Identification No. (DIN)

Application in Form DIR-3 is to be e-filed for getting the Director Identification Number for all the proposed directors.

  1. Application for Reservation of Name

Application in Form INC -1 to be e-filed for the proposed company, giving 5-6 options of the main name with combination of coined words. The same shall be reserved for a period of 60 days.

  1. Drafting of Memorandum of Association

The main lines of business to be pursued on formation of the company to be mentioned. The secondary or incidental objects also to be furnished.

  1. Drafting of Articles of Association

The bye-laws of the company to be drafted as Articles of Association in line with the provisions of the Companies Act, 2013.

  1. Filing Incorporation Form

The e-filing of Form No. INC.7 to be made alongwith,

(a) The Memorandum and Articles of the company duly signed by all subscribers;

(b)   A declaration in Form No.INC.8 by an advocate or Practicing professional (CA, CS, CA) who is engaged in incorporation, and a person named as Director, Manager or Secretary, that all requirements related to incorporation has been complied with;

(c)   An affidavit in Form No. INC.9 from each subscriber and from each person named as first director in the articles that, he is not convicted of any offence in connection with promotion, formation or management of any company, he is not been found guilty of any fraud or misfeasance or of any breach of duty to any company during preceding five years, and all the documents filed with the Registrar contain correct, complete and true information to the best of his knowledge and belief;

(d)  The address for correspondence till its registered office is established;

(e)  The particulars of every subscribers along with proof of identity;

(f)   The Particulars of first directors along with proof of identity; and

(g)  The particulars of interests of first directors in other firms or bodies corporate along with their consent to act as directors.

 

  1. Registered Office to be established

A company shall have a registered office within 15 days of Incorporation and it shall file Form No.INC.22 to verify the same.

Thus all the documents can be filed on-line to incorporate the company.

As initiative of ease of doing business, incorporation can be done through e-filing of single integrated Form 29, as well.