The Ministry of Corporate Affairs (hereinafter referred to as the “Ministry”) has issued recommendations for streamlining the incorporation process of IFSC Companies vide Memorandum dated 24th June 2025 (hereinafter referred to as the “Memorandum”).
The key recommendations given by the Ministry to expedite the incorporation process of IFSC companies are as follows:
- A process has been put in place for prioritizing the applications of IFSC entities vide an Office Memorandum (OM) issued by the e-Governance Section of the Ministry dated 20th January 2025.
- The Office of the Central Registration Centre (CRC) has been advised by the Ministry not to raise objections where IFSC companies are required to enter the industrial codes 65, 66, or 67.
- The application for name approval or incorporation of an IFSC company may be accompanied by a No Objection Certificate (NOC) from the parent company where the company intends to incorporate its subsidiary in an IFSC and the word “IFSC” is the only distinguishing feature in the proposed name. Such applications shall be duly considered by the Office of the CRC.
- The Corporate Identification Number (CIN) of a holding company cannot be entered twice in Form SPICe+ Part B while incorporating a wholly owned subsidiary. A nominee shareholder shall be added to satisfy the minimum shareholder requirement, while the beneficial interest shall remain with the holding company. Compliance with Section 89 of the Companies Act, 2013 is required.
- IFSC companies are now required to furnish verification of their registered office to the Registrar within 60 days from the date of incorporation instead of 30 days as prescribed under Section 12(2) of the Companies Act, 2013. This timeline has been modified through a notification issued under Section 462 of the Act.
- IFSC companies are required to submit e-Form INC-22 (Notice of Situation or Change of Situation of Registered Office) within 60 days from the date of incorporation to notify the Registrar of the registered office where the applicant company selects “No” in Sl. No. 4A of SPICe+ Part B relating to the correspondence address and registered office address.
- IFSC companies may attach the provisional letter for allotment of space along with a No Objection Certificate (NOC) from the co-developer while filing Form INC-22 after incorporation, which shall be treated as sufficient compliance with Rule 25 of the Companies (Incorporation) Rules, 2014.
- IFSC companies have a period of 60 days to comply with Form INC-22 and 180 days to comply with Form INC-20A (Declaration of Commencement of Business) from the date of incorporation.
- The technical issues faced by IFSC companies while entering their PIN codes in Form INC-22 have been rectified.
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