A new Web based Form named ‘SPICe+‘ (pronounced as ‘SPICe Plus‘) is an integrated Web based form offering multiple services like ‘name reservation’, incorporation, ‘DIN allotment’, mandatory issue of PAN, TAN, EPFO, ESIC, Profession Tax (Maharashtra), and ‘Opening of Bank Account’ & GST (Optional).
Company has two option available either first reserve the name in Spice+ Part-A and then apply in Spice+ Part-B or directly apply name with incorporation form then challan will not be required to be paid. In case company reserves the name first than challan needs to be paid of Rs. 1000 SRN will be mandatory required.
After completion of process and successful approval of form, certificate of incorporation, Tan allotment letter, PAN card of Company and DIN of directors will be issued. Along with GST Registration certificate, ESIC and EPFO certificate, Professional tax registration (For Maharashtra), Opening Bank account.
Spice form Fees
• In case of company having share capital
|Nominal Share Capital||Fee applicable|
|Up to 15,00,000||N/A|
|More than 15,00,000||Rupees 500|
• In case of company not having share capital
|Number of members||Fee applicable|
|Up to 20 members||N/A|
|More than 20 members||Rupees 500|
Stamp duty for MOA and AOA is Rs. 7550 (Madhya Pradesh)
Pan and Tan Fees is Rs. 131
Name Reservation Fees: In case applied separately in Part A for Name Reservation than Rs 1000
TDS compliance: Currently, all companies and LLP’s, irrespective of their amount of turnover have a liability to deduct TDS. The same is not true for an individual. An individual has a liability to deduct TDS only when the turnover of his business exceeds Rs. 1 Crore. (Gross receipts of Rs. 50 Lakhs in case of a professional). But, if a person forms a One person Company, he will be liable to deduct TDS from the first day itself.
TDS compliance has its own associated costs. TDS payments to the Government have to be made monthly while TDS returns are to be filed quarterly. Further communication with the Government regarding TDS Mismatch and other issues is not very streamlined. For an individual not having a large turnover, such compliance increases its operating costs.
Since the OPC can be formed only if turnover is below 2 crores, the intention of the Government seems clear, that OPC’s are meant for the small scale industries. Had the individual carried the business or profession in his individual capacity, there would not have been a TDS liability until the turnover limit had been reached. Therefore an amendment in the Act should be made to provide the same benefit of TDS compliance as is provided to an individual.
This will also safeguard the OPC from the disallowance of expenses in case of non-deduction and payment of TDS until the turnover limit is not reached. This will also simplify the law for OPC’s, since TDS compliance would have to be made only if the OPC is liable to tax audit under section 44AB of the Act.
In case of OPC following tax rates are applicable
|Type of company||Rate of tax applicable||Surcharge||SHEC|
|Domestic company||25% (less than 400 crores Turnover of PY2017-18)||1Cr. to 10cr. -7%
More than 10 cr.-12%
|Domestic company opting deduction under special scheme||15%(small scale industries with certain conditions)
22%(Companies who are currently using the 25% scheme can one time switch to this scheme )
|Applicable surcharge rate
Mandatory surcharge of 10%
|Domestic company who does not categories in any special scheme||30%||1Cr.-10cr. -7%
More than 10 cr.-12%
Incorporation through SPICe (Without filling RUN)
Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe+ form (INC-32) - Simplified Proforma for Incorporating Company electronically (SPICe+) - with eMoA (INC-33), eAOA (INC-34). In case eMoA, eAoA are not applicable, users are required to attach the pdf attachments of MoA and AoA. There is no need for reserving a name separately before filing SPICe. One name for the proposed company can be applied through SPICe+ (INC-32) Part A and Part B together.
Incorporation through SPICe+ (With Part A)
Name reservation: Part A of SPICe+
Incorporate OPC: After name approval, form SPICe+ Part B shall be filed for incorporation of the OPC within 20 days from the data of approval of Part A.
The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the new member of the OPC.
In case the paid up share capital of an OPC exceeds fifty lakh rupees or its average annual turnover of immediately preceding three consecutive financial years exceeds two crore rupees, then the OPC has to mandatorily convert itself into private or public company.
The OPC shall inform RoC in form INC-5, if the threshold limits is exceeded and is required to be converted into private or public company.
Form INC-5 shall be filed within sixty days of exceeding threshold limits.
Form INC-6 shall be filed by an OPC for conversion of an OPC into private or public company.
Yes, the private company will also file form INC-6 for converting itself into an OPC. The paid up share capital of private company should not be exceeding fifty lakh rupees and should not have average annual turnover more than two crore rupees at the time of such conversion into OPC. The company shall be having one member and shall appoint one nominee to act as member in case of death or incapacity of the member at the time of conversion into OPC.
Form INC-6 shall be filed within 30 days in case of voluntary conversion and within six months of mandatory conversion.
Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC.
For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.
A person can be member in only one OPC.
Where a natural person, being member in One Person Company becomes a member in another OPC by virtue of his being a nominee in that OPC, then such person shall meet the eligibility criteria of being a member in only one OPC within a period of one hundred and eighty days, i.e., he/she shall withdraw his membership from either of the OPCs within one hundred and eighty days.
Form INC-4 shall be filed in case of withdrawal of consent by the nominee or in case of intimation of change in nominee by the member.
We have prepared a detailed and easy to understand comparative table showing availability of features and advantages of one form of business to that of others. The same can be found at the end of this page.
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