Hi Folks |
We are living in times of frugality…………….not of money, materialistic comforts, food or ideas (at least most of us if not the whole world). But of time. Time is a premium product. We want as much in as little time. A 10 minute video seems ages. A 7 minute talk seems a sermon. Anything more than 160 words is an essay. Though we spend hours on facebook, instagram and whatsapp we feel vowels and consonants take up too much of our time. We prefer short forms and acronyms…… TGIF (Thank God It is Friday), LOL (Laugh out Loud), ROFL (Roll on the Floor Laughing), OK (Oll Korrect), Eg. (Exempli Gratia), etc. (et cetra i.e. and the rest). |
Not to be left behind, the Government is toying with several acronyms…..NITI (National Institution for Transforming India), SBA (Swacch Bharat Abhiyaan), SMILE (Sidbi Make In India For Small Enterprises), CODS (Condonation of Delay Scheme), POEM (Place of Effective Management), SPICE (Simplified Proforma for Incorporating Company Electronically) and the latest RUN (Reserve Unique Name). RUN is meant to be an EODB (Ease of Doing Business) initiative by the MCA for company incorporation. However the initial experience of users is that most names are getting rejected which means Rs. 1000 lost for each application since there is no resubmission option. It appears that there is Zero government fee upto Rs. 10 lacs authorised share capital. This will work well and deliver the intended incentive to entrepreneurs to start up as a company only if RUN works well. Professionals are apprehensive considering the past experience of dealing with the MCA help-desk which does anything but help. Mere acronyms don’t ease business. Intention coupled with trained personnel who are accountable in a transparent system does. This is the need of the hour ! |
With the Union Budget 2018 promising big bang news, our 181st newsletter Samhita has been kept brief – covers changes in MCA, IBC, GST & FDI in the last fortnight of January, 2018. Of course the changes are as impactful as ever and worth reading. |
For our earlier issues do visit the Resource Centre at sharadasc.com.
Happy Reading
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Reserve Unique Name (RUN) |
MCA has introduced a new web service called RUN for reserving name of proposed company or to change the name of the existing company in place of Form INC-1 w.e.f. 26th January, 2018. No re-submission of the application is allowed under RUN.
Further, MCA has prescribed revised list of fees w.r.t. registration of new companies, increase of authorized share capital, for filing revised Financial Statement or Board’s Report etc.
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Zero incorporation Fee |
Zero fee for incorporation of all Companies with authorized share capital upto Rs. 10 lakh.
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Incorporation |
MCA has mandated only SPICe for incorporation of companies. Earlier Form INC-7 was available. It is not clear what is to be done for incorporation of Producer Companies, since SPICe does not support details for Producer Company.
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DIN |
Allotment of Director Identification Number (DIN) by allotting it through SPICe Form only at the time of an individual’s appointment as Director.
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The government has reviewed the Foreign Direct Investment (FDI) policy in various sectors to bring more activities under automatic route and ease conditionalities for foreign investment.
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Highlights: |
–Audit firms – In case foreign investor requires a specific International Audit firm to audit the Indian Company in which they have invested, there should be a joint audit where one of the Auditor should not be a member of the International Audit Firm. For e.g. If Big 4 is nominated as a Global audit Firm, then the joint auditor of the Indian company should not belong to the same Audit Firm.
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