ZERO FEES FOR INCORPORATING A NEW COMPANY WITH AUTHORISED CAPITAL UPTO 10 LAKHS- A COMPREHENSIVE ANALYSIS OF NOTIFICATIONS ISSUED BY MCA

ACCHE DIN starts for small companies, as with a view to improve India’s position in the world ranking for “Doing Business” and on the occasion of the 69th Republic Day, Ministry of Corporate Affairs (“MCA”) has again come up with a new and big initiatives.

MCA has launched the Government Process Re-engineering (“GPR”) initiatives for making the Incorporation Process Speedy, Smooth, Simple and reducing the number of procedures involved for starting a new Business.

As we all know that, MCA has already contributed significantly towards improvement of ranking in Ease of Doing Business in our country. This step could be a milestone.

Yes! You heard it right, there will be NO GOVERNMENT FEES to form a new Company in India.

After this step, you will all see a significant reduction in the professional fees charged by the professionals like CS, CA or Advocates.

Apart from above, the government will launch a web service know as reserve unique name (“RUN”) for reserving name of a proposed company. This will allow entrepreneurs to reserve a name for their proposed venture besides enabling them to change the name of an existing company.

Further, there is no requirement of obtaining DIN separately, entrepreneurs who wishes to incorporate a new company can apply DIN through the combined SPICe form only. People having DIN and want to incorporate a new company can fill the information in the SPICe form wherever necessary. There is a lot more scope to further improve, especially with respect to starting a business. However, aforesaid step are really great initiative from the point of view of stakeholders.

In view of the above background, MCA has notified Companies (Incorporation) Amendment Rules, 2018 w.e.f. 26^th January, 2018 i.e., today. It specifies following amendments in the Companies Amendment Rules, 2014:

• Rule 9 substituted, now the said rule states that name reservation shall be made through using RUN services on MCA portal;
• Form INC 7 has been omitted;
• Substitution of Rule 12, now the said rule specifies that application for registration of a company shall be filed in Form No.INC-32 (SPICe) along with the fee as provided under the Companies (Registration offices and fees) Rules, 2014.
• Zero fees on Form INC-32 (SPICe) for Companies incorporated on or after 26^th January, 2018 with a nominal capital of less than or equal to rupees 10 lakhs  or in respect of companies not having a share capital whose number of members as stated in the articles of association does not exceed twenty.

MCA also notified Companies (Registration offices and Fees) Amendment Rules, 2018 w.e.f. 26^th January, 2018. It specifies following amendments in the Companies (Registration offices and Fees) Rules, 2018:

• No re-submission is allowed for name reservation through web service-RUN;
• A revised table has been notified under the above mentioned rules which is as follows

(I) In respect of a company having a Share Capital	OPC and Small Companies	Other than OPCs and Small Companies
1. (a) For registration of OPC and small companies whose nominal share capital less than or equal to Rs. 10,00,000.	__	__
(b) For registration of OPC and Small companies whose nominal share capital exceeds 10,00,000 the fee of 2000 with the following additional fees regulated according to the amount of nominal capital: For every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first Rs. 10,00,000 and upto Rs. 50,00,000	200	__
2. (a) For registration of a company other than OPC and Small companies whose nominal share capital less than or equal to 10,00,000 at the time of incorporation	__	__
(b) For registration of a company other than OPC and Small companies whose nominal share capital exceeds 10,00,000 the fee of 36,000/- with the following additional fees regulated according to the amount of nominal capital:	__	__
(i) For every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first Rs. 10,00,000 and upto Rs. 50,00,000	__	300
(ii) for every Rs. 10,000 of nominal share capital or part of Rs 10,000 after the first Rs. 50,00,000 upto 1 Crore	__	100
(iii) for every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first 1 crore	__	75
Provided further that where the additional fees, regulated according to the amount of the nominal capital of a company, exceeds a sum of rupees two crore and fifty lakh, the total amount of additional fees payable for the registration of such company shall not, in any case, exceed rupees two crore and fifty lakhs.
3. For filing a notice of any increase in the nominal share capital of a company, the difference between the fees payable on the increased share capital on the date of filing the notice for the registration of a company and the fees payable on existing authorized capital, at the rates prevailing on the date of filing the notice.	__	__
(a) For OPC and small Companies whose nominal capital does not exceed 10 lakhs	2000	__
(b) For OPC and small Companies, for every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first Rs. 10,00,000 and upto Rs. 50,00,000	200	__
Other than OPC and small Companies (c) For increase in nominal capital of a company whose nominal capital share capital does not exceed Rs. 1,00,000.	__	__
(d) For increase in nominal capital of a company whose nominal share capital exceeds Rs. 100,000 the above fee of Rs. 5000 with the following additional fees regulated according to the amount of nominal capital:	__	__
(i) for every Rs. 10,000 of nominal share capital or part of Rs 10,000 after the first Rs. 1,00,000 upto 500,000	__	400
ii) for every Rs. 10,000 of nominal share capital or part of Rs 10,000 after the first Rs. 5,00,000 upto 50,00,000.	__	300
(iii) for every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first 50,00,0000 upto 1 crore	__	100
(iv) for every Rs. 10,000 of nominal share capital or part of Rs. 10,000 after the first 1 crore	__	75
Provided further that where the additional fees, regulated according to the amount of the nominal capital of a company, exceeds a sum of rupees two crore and fifty lakh, the total amount of additional fees payable for the registration of such company shall not, in any case, exceed rupees two crore and fifty lakhs.
4. For registration of any existing company, except such companies as are by this Act exempted from payment of fees in respect of registration under this Act, the same fee is charged for registering a new company.	__	__
5. For submitting, filing, registering or recording any document by this Act required or authorised to be submitted, filed, registered or recorded
(a) in respect of a company having a nominal share capital of upto 1,00,000.	__	200
(b) in respect of a company having a nominal share capital of Rs. 1,00,000 or more but less than Rs.5,00,000.	__	300
(c) in respect of a company having a nominal share capital of Rs. 5,00,000 or more but less than Rs.25,00,000	__	400
(d) in respect of a company having a nominal share capital of Rs.25,00,000 or more but less than Rs. 1 crore or more	__	500
(e) in respect of a company having a nominal share capital of Rs. 1 crore or more. Provided that in case of companies to be incorporated with effect from 26.01.2018 with a nominal capital which does not exceed rupees 10 lakhs fee shall not be payable	__	600
6. For making a record of or registering any fact by this Act required or authorised to be recorded or registered by the Registrar -
(a) in respect of a company having a nominal share capital of upto 1,00,000.	__	200
(b) in respect of a company having a nominal share capital of Rs. 1,00,000 or more but less than Rs.5,00,000.	__	300
(c) in respect of a company having a nominal share capital of Rs. 5,00,000 or more but less than Rs.25,00,000		400
(d) in respect of a company having a nominal share capital of Rs.25,00,000 or more but less than Rs. 1 crore or more		500
(e) in respect of a company having a nominal share capital of Rs. 1 crore or more.		600
(II) In respect of a company not having a share capital :
7. For registration of a company whose number of members as stated in the articles of association, does not exceed 20	__	__
8. For registration of a company whose number of members as stated in the articles of association, exceeds 20 but does not exceed 200	__	5000
9. For registration of a company whose number of members as stated in the articles of association, exceeds 200 but is not stated to be unlimited, the above fee of Rs.5,000 with an additional Rs. 10 for every member after first 200.	__	__
10. For registration of a company in which the number of members is stated in the articles of association to be unlimited.	__	10,000
11. For registration of any increase in the number of members made after the registration of the company, the same fees as would have been payable in respect of such increase, if such increase had been stated in the articles of association at the time of registration: Provided that no company shall be liable to pay on the whole a greater fee than Rs. 10,000 in respect of its number of members, taking into account the fee paid on the first registration of the company.	__	__
12. For registration of any existing company except such companies as are by this Act exempted from payment of fees in respect of registration under this Act, the same fee as is charged for registering a new company.	__	__
13. For filing or registering any document by this Act required or authorized to be filed or registered with the Registrar. Provided that in case of companies to be incorporated with effect from 26.01.2018 whose number of members a stated in the articles of association does not exceed 20, fee shall not be payable	__	200
14. For making a record of or registering any fact by this Act required or authorized to be recorded or registered by the Registrar.	__	200

SCREENSHOT OF FEES FOR REFERENCE OVER MCA PORTAL

1. Incorporation of company with authorized capital 10 lakhs 

2. Incorporation of company with authorized capital 20 lakhs 

CONTACT FOR ANY QUERY OR PROFESSIONAL SERVICES IN DELHI NCR AT cspraveensingh111@gmail.com or 8510058386

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Praveen Singh 

CREDIT GUARANTEE FUND FOR STARTUPS

CREDIT GUARANTEE FUND FOR STARTUPS

Government is formulating a Credit Guarantee Scheme for Startups (“CGSS”) with a corpus contribution of INR 2000 crores that will enable Startups to raise loans without any collateral for their business purposes. The proposed scheme will provide credit guarantee upto INR 500 lakhs per case inclusive of term loan, working capital or any other instrument of assistance extended by Member Lending Institutions (“MLIs”) to finance an eligible borrower i.e. a Startup recognized by Department of Industrial Policy and Promotion (DIPP).

The main norms and preconditions of the CGSS are as follows:

Scheme will provide benefit to a Startup recognized by DIPP as per Gazette Notifications issued from time to time;

For all resident Directors/Partners, Aadhaar shall be mandatory and for non-resident directors/partners, the passport number shall be a mandatory part of KYC norms;

Member Lending Institutions (“MLIs”) under the scheme can be Scheduled Commercial Banks and Financial Institutions, RBI registered Non-Banking Financial Companies (“NBFCs”), SEBI registered AIFs, etc;

The scheme will function under the trusteeship management of the National Credit Guarantee Trustee Company (“NCGTC”);

Scheme shall provide portfolio- based credit guarantee. Each portfolio shall comprise at least 10 eligible start up loans, during a particular Financial Year;

Coverage would be extended to the portfolio and the portfolio loss would be reckoned against the “net cash losses” during the portfolio life;

Instruments of assistance could be in the form of Venture debt, working capital, debentures, Optionally Convertible debt, etc;

MLIs may provide loans to up to any amount required by an eligible borrower. However, under the scheme the exposure for availing credit guarantee shall be limited to Rs.500 lakh per eligible borrower. 

Such loan will be extended by MLIs without any collateral security and/or third party guarantee;

The Management Committee shall be responsible for the overall supervision and monitoring of the Credit Guarantee Scheme for start-ups;

A Risk Evaluation Committee shall also be formed to address conflict of interest issues;

This information was given by the Commerce and Industry Minister  Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Profile of President Shri Ram Nath Kovind- In short

Profile of President Shri Ram Nath Kovind

A lawyer, veteran political representative and long-time advocate of egalitarianism and integrity in Indian public life and society, Shri Ram Nath Kovind was born on October 1, 1945, in Paraunkh, near Kanpur, Uttar Pradesh. His parents were Shri Maiku Lal and Smt Kalawati.

Before assuming charge of the office of the 14th President of India on July 25, 2017, Shri Kovind served as the 36th Governor of the state of Bihar from August 16, 2015, to June 20, 2017.

Educational and Professional Background

Shri Kovind completed his school education in Kanpur and obtained the degrees of B.Com and L.L.B. from Kanpur University. In 1971, he enrolled as an Advocate with the Bar Council of Delhi.

Shri Kovind was Union Government Advocate in the Delhi High Court from 1977 to 1979 and Union Government Standing Counsel in the Supreme Court from 1980 to 1993. He became Advocate-on-Record of the Supreme Court of India in 1978. He practised at the Delhi High Court and Supreme Court for 16 years till 1993.

Parliamentary and Public Life

Shri Kovind was elected as a member of the Rajya Sabha from Uttar Pradesh in April 1994. He served for two consecutive terms of six years each till March 2006. Shri Kovind served on various Parliamentary Committees like Parliamentary Committee on Welfare of Scheduled Castes/Tribes; Parliamentary Committee on Home Affairs; Parliamentary Committee on Petroleum and Natural Gas; Parliamentary Committee on Social Justice and Empowerment; and Parliamentary Committee on Law and Justice. He was Chairman of the Rajya Sabha House Committee.

Shri Kovind also served as Member of the Board of Management of the Dr B.R Ambedkar University, Lucknow, and Member of the Board of Governors of the Indian Institute of Management, Kolkata. He was part of the Indian delegation at the United Nations and addressed the United Nations General Assembly in October 2002.

Positions Held

2015-17: Governor of Bihar

1994-2006: Member of the Rajya Sabha, representing the state of Uttar Pradesh

1971-75 and 1981: General Secretary, Akhil Bharatiya Koli Samaj

1977-79: Union Government Advocate at the Delhi High Court

1982-84: Union Government Junior Counsel in the Supreme Court

Personal Details

Shri Kovind married Smt Savita Kovind on May 30, 1974. They have a son, Shri Prashant Kumar, and a daughter, Miss Swati. An avid reader, the President has keen interest in reading books on politics and social change, law and history, and religion.

During his long public career, Shri Kovind has travelled widely across the country. He has also visited Thailand, Nepal, Pakistan, Singapore, Germany, Switzerland, France, the United Kingdom and the United States in his capacity as a Member of Parliament.

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