General Circular No. 6/2011

F.No. 17/56/2011-CL-V

Government of India

Ministry of Corporate Affairs

5th Floor, A Wing, Shastri Bhavan

Dr. R.P. Road, New Delhi-110001

Dated 8th March, 2011

To

All Regional Directors

All Registrar of Companies

All Official Liquidators

Sub: Process of incorporation of Companies ( Form-1) and establishment of principal place of business in India by Foreign Companies ( Form-44) – Procedure simplified.

Sir,

I am directed to inform that Ministry has received various representations regarding time taken by the Registrar of Companies for registration of Form-1 and Form-44.

The Ministry has got the issue examined by Business Process Re-engineering Group under MCA-21 and in order to speed up and simplify the process of incorporation of Companies and establishment of principal place of business in India by Foreign Companies for reduction in time taken by Registrar of Companies, the below mentioned procedure have been recommended :

1. Only Form-1 shall be approved by the RoC Office. Form 18 and 32 shall be processed by the system online.

2. There shall be one more category, i.e., Incorporation Forms (Form 1A, Form 37, 39, 44 and 68) which will have the highest priority for approval.

3. Average time taken for incorporation of company should be reduced to one (1) day only.

4. A Notification to notify minor changes in e-forms 18 and 32 to enable them to be taken on record through STP mode for aforesaid procedure is being issued separately.

Yours faithfully,

(Seema Rath)

Assistant Director (Inspection)

Tele : 011-23387263

Company incorporation process simplified: RoC to approve only Form 1 with priority online processing and one day target. The Registrar of Companies will approve only Form 1 while Forms 18 and 32 will be processed online; a new high priority category 'Incorporation Forms' (Form 1A, 37, 39, 44, 68) is to receive top priority. The average incorporation processing time is to be reduced to one day, and a separate notification will make minor e form amendments to allow Forms 18 and 32 to be taken on record through STP mode.