India’s business company registration method has changed greatly over recent years, with the creation of the Simplified Proforma for Incorporating Company Electronically (SPICe) form and SPICe+ being its replacement. These forms are important because they ease registration and meet all legal requirements. SP ICe vs. SPICe+ The main differences are important for business people or business owners looking to put their projects in India.
What is SPICe?
Simplified Proforma for Incorporating Company Electronically, or SPICe, is a single application form combining various additional registrations needed for beginning a business in India with the procedure of company formation. The Ministry of Corporate Affairs (MCA) first presented this form in 2017 to streamline business setup time and incorporate procedure simplicity.
The SPICe form allows entrepreneurs to apply for the following services simultaneously:
- Company formation
- Permanent Account Number (PAN) issue
- Tax Deduction and Collection Account Number (TAN) issue
- Director Identification Number (DIN) application
- Opening of a bank account – Profession Tax filing
- Employees’ State Insurance Corporation (ESIC) application
- Employees’ Provident Fund Organisation (EPFO) application
Business owners may save time and effort by sending a single form, ensuring that their firm is properly listed and compliance with several legal criteria.
What is SPICe+?
In 2020, the Ministry of Corporate Affairs launched the SPICe+ form, which builds upon the success of the SPICe form and gives additional benefits and perks. SPICe+ is a whole form that mixes the creation process with various apps and offers needed to start a business in India.
The SPICe+ form offers the following features:
- Company incorporation
- PAN and TAN issue
- DIN application
- ESIC and EPFO registration
- Profession Tax Registration
- Opening of a bank account
- Shops and Establishments Registration
- GSTIN application
- Trademark registration
Key Differences Between SPICe and SPICe+
SPICe and SPICe+ vary mostly from one another in:
- Whereas SPICe consisted of a single form, SPICe+ combines many forms into a single application, including INC-32 (SPICe) and INC-35 (Affidavit).
- Though not included on the SPICe form, SPICe+ provides other services like Shop and Establishment registration and GSTIN application.
- Freedom: SPICe+ allows for more freedom regarding the number of members and approved capital, making it ideal for a wider range of businesses.
- Working time: SPICe+’s working time is usually faster than SPICe’s, as it bundles multiple entries into a single application.
When to Use Each Form
The particular needs of the company and the services required will determine which of SPICe and SPICe+ to choose. Should a firm only need the essential registrations—company incorporation, PAN, TAN, and DIN—the SPICe form might be enough. SPICe+ would be the most suitable option, but if a company needs further registrations such as GSTIN, Shops and Establishments, or trademark applications.
Conclusion
Introducing SPICe forms and the recent launch of SPICe+ forms have helped India enhance its ease of doing business. This streamlines the process for incorporating or making establishment changes to a company, thereby reducing time and cost with minimal paperwork. Business people can ensure a quick and efficient start to their projects in India by knowing the difference between these forms and selecting the one that best suits their business requirements.
