Selection of sub activity code in spice form

    13 Mar    Blog
    Mar 13

    Selection of sub activity code in spice form

    The MCA has made the process of incorporation of a new company very easy. E form Spice provides help to the users and self descriptive how to fill it.

    But there are certain things which needs to be reconsidered in this new process as at times the promoters are not very clear about the options to be chosen for the business activity code. If other services are chosen then the sub activity is assigned by the MCA on its own eg a company was incorporated with main activity code 72 which is computer related services but the sub activity was assigned by the MCA is 502 which describes retail trading of computer or other parts etc where as the business of the company is providing IT help in construction work (three dimensional view of the construction venue), hence, a different type problem occurred after incorporation of a company, sub activity code was  not as per the business activity of the company.

    The form provides option to choose the main activity from the drop down box but sub activity is assigned by the MCA.There is no facility to choose sub activity code . It automatically fills as per the main activity.

    But at times sub activity does not match with the main objectives of the company.

    This makes the clients confused resulting the company looses the particular business opportunities .

    Today is the era of online services provider when the business activity is not correct the prospective clients can’t reach to the service provider in that particular field so company looses the business as on search on the particular service on the Google on other search engines that company shows different business activity.

    The ministry of corporate affairs need to look into this by giving the list of sub activity codes and type of business in the form or help kit /instructions kit.

    1. Either the ministry of corporate affairs should give the option to choose the sub activity from the drop down box ,or
    2. before assigning the activity code a confirmation letter should be sent to the directors and the company to check and confirm the code of the business activity.

    It is very difficult to change the activity code after the incorporation of the company as there is no settled /fixed procedure to change.

    or

    A form to change the sub activity should be introduced as per the main objectives of the company.

    This change is required ,as the change happens on demand only when a type of particular problem occurs.

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