The number of companies registered in F.Y 2020-21 rose by 24.3% as compared to the F.Y. 2019-20 as per the data from the Ministry of Corporate Affairs.
So what pushed more businesses to be registered? Well, it was the Government’s new initiative of Ease of Doing Business.
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What were the reforms that led to this push?
As a part of the Government of India’s Ease of Doing Business (EODB) initiatives, the Ministry of Corporate Affairs (MCA) introduced a new Web Form called ‘SPICe+’ replacing the old SPICe form. All companies getting incorporated on or after 23rd February 2020, are required to file SPICe+.
Through SPICe+, a business can offer 10 services by 3 Central Government Ministries & Departments, namely- Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance, and 1 State Government (Maharashtra). This has led to a reduction in company registration fees and also saving procedures and time..
These 10 services include:
- Application for reservation of name
- DIN of the proposed directors
- PAN registration of the company (Mandatory)
- TAN registration of the company (Mandatory)
- PF registration of the company (Mandatory)
- ESI registration of the company (Mandatory)
- GST registration of the company (Optional)
- Professional Tax registration of the company (only in Maharashtra, Karnataka, and West Bengal)
- Opening of Bank Account (Mandatory)
- First time registration of shops and establishments for all new companies getting incorporated in Delhi
Post-Incorporation Compliances
Once the company is incorporated, it should comply with certain requirements of MCA. These include:
1. Appointment of Auditor
Upon incorporation, the Board of Directors is required to appoint the Company’s first statutory auditor. This has to be done within a period of 30 days from incorporation by filing form ADT-1. In case the Board fails to do so, it shall be the duty of the members to appoint an auditor by holding an Extra-Ordinary General Meeting. Such an auditor will act as the statutory auditor of the company until the conclusion of the first AGM.
2. Commencement of Business
A newly incorporated company shall not commence any business or exercise any borrowing power unless it has filed a declaration in eForm-INC-20A that every subscriber has paid the value of shares agreed. This declaration should be made within a period of 180 days from the date of incorporation.
Annual Compliances
Other than post-incorporation compliances, there are certain annual compliances to be done each year. These include:
- Annual General Meeting
- Statutory Audit
- Appointment of Subsequent Auditor
- RoC Forms- AOC-4 and MGT-7
- Board Meetings
- Declaration by Directors- MBP-1 and DIR-8
- Statutory Registers
Seems like when you have the spirit of hustling, even a pandemic can’t stop you from scaling new heights. This initiative of the Government has made the process of starting a business in India very simple and seamless.
Want to register your own business? Check out our plans.
Hey @BP_Stock_Advisory,
If an individual is a senior citizen or their parents are senior citizen and the individual has paid for medical bills then you can claim the deduction for such medical expenses up to INR 50,000/- u/s. 80D.
Hope this helps!