India has witnessed a major step forward in the ease of setting up a business with the launch of the new web form, Simplified Proforma for Incorporating Company Electronically Plus (SPICe+), introduced by the Ministry of Corporate Affairs (MCA). The newly introduced SPICe+ form is an upgraded version that replaces the existing SPICe form, which was introduced back in 2016. This initiative is significant as it offers a one-stop solution for multiple services necessary for company incorporation, eliminating several procedures and saving precious time and resources for entrepreneurs.
Introduction to the SPICe+ Web Form
The SPICe+ web form is an innovative offering from the MCA that aims to simplify the previously complex process of starting a business in India. By combining 10 crucial services offered by three central government ministries and one state government, the SPICe+ form streamlines procedures and makes company incorporation easier and quicker. It incorporates services from the Ministry of Corporate Affairs, Ministry of Labour, Ministry of Finance and the Maharashtra State Government.
Structure of the SPICe+ Form
In order to cater to various business requirements, the SPICe+ form is divided into two parts – Part A and Part B. Part A is dedicated to name reservation for new companies, a crucial first step in the incorporation process. On the other hand, Part B offers a range of services including incorporation, Director Identification Number (DIN) allotment, mandatory issue of Permanent Account Number (PAN), and if applied for, the allotment of the Goods and Service Tax Identification Number – GSTIN.
Impact on Ease of Doing Business
This simplification of procedures through the SPICe+ form is expected to have a positive impact on India’s position in the Ease of Doing Business (EODB) rankings. As of 2019, India held the 63rd spot out of 190 countries on the World Bank’s EODB survey. Despite this progress, starting a business was identified as an area where the country still lagged behind. The introduction of the SPICe+ form is aimed at improving this and helping India achieve its target of reaching the 50th spot in the EODB rankings.
Benefits of the SPICe+ Form
The SPICe+ form offers several benefits to entrepreneurs and startup owners. This all-in-one form reduces paperwork, saves time and cuts costs, thus making it simpler for business owners to set up their companies. More importantly, by bringing together crucial services under a single umbrella, it reduces the potential for errors or oversights, ensuring a smooth and efficient incorporation process.
The launch of the SPICe+ web form by the Ministry of Corporate Affairs is a significant step towards improving the ease of doing business in India. It not only simplifies the process of company incorporation but also aims to boost India’s global ranking in terms of business friendliness. The government’s continued efforts in this direction are expected to yield positive results in the future, encouraging more homegrown and foreign businesses to set up operations in India.