Ministry of Corporate Affairs (MCA) has exempted incorporation fee for firms having share capital up to Rs 15 lakh.
MCA amends incorporation fee and shifting of office norms for startups.
To encourage startups and improve ease of doing business in India, the Ministry of Corporate Affairs (MCA) has exempted incorporation fee for firms having share capital up to Rs 15 lakh.
Earlier, the companies with initial authorised capital up to Rs 10 lakh were exempted from any MCA fee on Incorporation and only stamp duty was applicable.
It also made amendments related to shifting of registered office from one state to another state. Any companies, who want to shift their Registered office from one state to another state can advertise the notice of shifting registered office in a vernacular newspaper in the principal vernacular language in the district and in the English language in an English newspaper with the wide circulation.
Prior to amendment, the startups had to publish notice of shifting in widest circulated newspaper, which in case of failure used to result in the unnecessary delay of 4-5 months in the completion of the procedure.
Now with the amendments, the companies can choose the newspapers with minimum circulation as well. The amendments are made with an aim to enhance the ease of doing business for startups and SMEs.
However, the amendment has not specified a meaning to the term ‘wide’, leaving the same to the judgement of authorities. This might lead to confusion and undue delays in the processing of applications.