MCA Proposes Few Changes To Make Incorporation Process More Convenient

Company-Incorporation-centrik

Recently Ministry of Corporate Affairs has made few changes to make the Incorporation process more convenient to stakeholders.

Following are the changes-

Application for reservation of Name:

Presently eform INC – 1 is in force for Reservation of Name by proposed company and Change of Name by existing companies. However, MCA is proactively engaged in designing a Front Office service with regards to procedure for reservation of name by companies.

Eform INC – 1 is proposed to be replaced with Web-Form since 26th January, 2018. The change is proposed to seek only absolutely essential information for the concerned application. Stakeholders are also advised to take proactive steps to avoid inconvenience due to proposed changes.

Application of Director Identification Number:

Ministry of corporate affairs are looking forwards to make changes with respect to Application of allotment of Director Identification Number. Changes are proposed by replacing the existing procedure of getting DIN both in case of companies as well as Limited Liability Partnership Firms.

With respect to Companies:

Eform DIR – 3 is presently used for making application for allotment of Director Identification Number to individuals.

In respect of incorporation of proposed companies, where the proposed first directors do not hold DIN, the application for allotment of DIN will be processed only under SPICe forms provided for application of incorporation of company. In this form, maximum 3 new DINs will be applied.

In respect of existing companies, for appointment of individual as director, not holding DIN the application for allotment of DIN is to be made in existing eform DIR – 3 only. The said form shall be filed with MCA by the company in which the individual is proposed to be appointed and not the proposed director. Hence, responsibility for application will lie on the concerned company.

With respect to Limited Liability Partnership:

In order to facilitate above mentioned changes, it is proposed to temporarily suspend the issuance of allotment of new DINs for Designated Partners/Partners of LLPs w.e.f. 26th January 2018 till 31st March 2018.

Stakeholders are required to take note of same as getting DIN for Designated partner is one of mandatory requirement of LLP.

Further, where existing Limited Liability Partnership is planning to appoint a Designated Partner in near future, the proposed candidature should make the application of DIN Allotment as soon as possible to facilitate ease of changes in proposed time line.

The declaration made with regards to said changes are not yet notified by formal notification of MCA, however are proposed to be made in near future.

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.

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