Govt Reduces Cost For Incorporating Startups

The Ministry of Corporate Affairs (MCA), vide notification dated 29th December 2016, has amended its incorporation rules.

The changes in the principal rules have been briefed out as follows:

  1. Simplified Proforma for Incorporating a Company Electronically (SPICe) Forms are mandatory for incorporation (with up to 7 subscribers) from 1st January 2017.
  2. The Filing Fees has been reduced from Rs 2000 to Rs 500.
  3. The number of r- submission has been reduced from 3 to 2.
  4. Form INC-2 is deprecated.
  5. INC-7 shall be used for incorporating Part 1 Companies and companies with more than seven subscribers.
  6. The revised INC-7 shall be made available on the portal for filing purposes with effect from 15th January 2017.

You can find the entire notification here.

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