This issue of LexCognito, which in Latin means 'awareness about law', seeks to provide you an insight into significant legal and regulatory developments that have taken place very recently in India.
Date: 2 April 2019
Ministry of Corporate Affairs is making it easier for Corporates to obtain mandatory registrations
For ease of doing business in India, the Ministry of Corporate Affairs ("MCA") has once again taken a step towards streamlining process of incorporating a company in India and obtaining mandatory registrations.
Vide its notification dated 29 March 2019, MCA has amended the Companies (Incorporation) Rules, 2014 to introduce an e-form AGILE (INC-35). This form contains application for registration of the Goods and Services Tax Identification Number (GSTIN), Employees’ State Insurance Corporation (ESIC) Registration Number and Employees Provident Fund Organization (EPFO) Registration Number. As per the amended rules, every application form for incorporation of a company in India through SPICe form shall be required to be accompanied with e-form AGILE containing an option for making application for registration of GSTIN effective from 31 March 2019, EPFO effective from 8 April 2019 and ESIC effective from 15 April 2019.
As per GST laws, it is mandatory to obtain GST registration for the companies having annual turnover exceeding the prescribed thresholds. Irrespective of the thresholds, GST registration is also mandatory for companies engaged in inter-state supplies, supply through e-commerce platforms, etc.
Under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 which is a social security legislation and provides for provident fund, pension and deposit insurance fund for employees, every employer employing 20 or more persons is mandatorily required to obtain registration under the said Act.
Under the Employees' State Insurance Act, 1948 which is a social security legislation and provides for benefits to employees in case of sickness, maternity and employment injury, every employer employing 10 or more persons is mandatorily required to obtain registration under the said Act.
Although filing this new form is mandatory to be filed along with application for incorporation, the new form gives an option to the applicant to choose to apply for any or all of the aforesaid registrations.
While making such applications, the applicant is required to give reasons for obtaining the said registrations along with other details such as description of the goods and services to be provided by the company, address of its principal place of business and proof thereof, nature of its possession as to whether it is owned or leased premises, etc. Apart from the same, the details of the directors who is and who is not the authorized signatory is also required to be given along with their photograph, personal mobile number and e-mail id. In case of director who is authorized signatory, the proof of his appointment in the form of an authorization letter or Board Resolution will also be required along with his specimen signature and Permanent Account Number ("PAN"). His personal mobile and e-mail id will be verified through one time password/OTP.
This form is only applicable for applicants who are incorporating companies through SPICe form and is to be signed by a director who has signed SPICe Form.
Under the present SPICe Form, an applicant intending to incorporate a company is also required to simultaneous apply for PAN and Tax Deduction and Collection Account Number ("TAN"). This new form will now enable applicants to incorporate the company in India and simultaneously obtain PAN, TAN, GSTIN, EPFO and ESIC which will save a lot of time and money.
Chambers of Rajan & Indraneel
T: +91 11 41000224, 41030225| Fax:+91 11 29239074
E-mail:rajan.gupta@chrilegal.com
Mobile: +91 9810404086
N 103 Greater Kailash - I, New Delhi - 110048, India.
About us
Chambers of Rajan & Indraneel is a premier full service law firm headquartered at New Delhi, India. The Firm represents amalgamation of vast experiences and practices of two eminent lawyers. Indranil Ghosh is highly reputed as a disputes lawyer. He was a senior partner and head of litigation practice in one of the oldest Indian law firm Fox Mandal for several decades before setting up his own practice. Rajan D Gupta is a rank holder Chartered Accountant turned Corporate Lawyer. He is also a licensed Insolvency Resolution Professional. He has been associated with internationally renowned big law firms in past and has held senior level positions in firms like PwC, Fox Mandal, Khaitan & Co. and SRGR Law, etc. before starting the Firm.
We have a team of experienced Lawyers, Chartered Accountants, Company Secretaries and Insolvency Resolution Professionals with access to network of high quality experienced lawyers in all major commercial cities of India.
The Firm offers a wide range of expert legal services in the areas of corporate and commercial laws and specializes in representing major foreign and domestic corporations with diverse business interests in India. The Firm is professionally equipped to handle large sized and complex corporate transactions like Mergers & Acquisitions, Corporate Restructuring, Joint Ventures, Inbound & Outbound Investments, Private Equity and Venture Capital Investment Transactions, Real Estate Transactions, Infrastructure Projects, Project Finance, Power Projects, Non-Conventional Energy Projects, Highways & Road Projects and Corporate Taxation as well as GST, etc. The Firm also offers proven capabilities in litigation and dispute resolution practice areas, especially in handling international and domestic arbitrations as well as litigation in Supreme Court, various High Courts of India and various judicial and quasi-judicial tribunals/forums including at National Client Law Tribunal, Appellate Tribunals, Tax Tribunals, Competition Commission, Electricity Tribunal, Telecom Disputes Tribunal, Designated Authorities and other adjudicatory bodies.
We have set up a Japan Business Desk (JBD) in order to serve our Japanese clients in a better way. The endeavour of the JBD is to act as a bridge between our professionals and clients from Japan so as to ensure that there are no barriers as to linguistic and cultural differences. This will indeed facilitate Japanese corporates doing business in India.
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