How to register a Section 8 Company?

According to section 8(1)(a), (b) and (c) of the Indian Companies Act, 2013, a section-8 company can be established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.

 Steps for incorporation of Section 8 Company:

  • File Form INC-1 for name availability. Kindly note that for Section 8 Company it is not mandatory to have word Limited or Private Limited in its name.
  • Once the name is approved, File Form INC -12 for obtaining a license for a Section 8 Company. Such application will be processed and approved by Regional Director.
  • After receipt of Licence, the process for incorporation of Section 8 Company is same as normal Company. It can either file Form SPICe or Form INC-7 (in case number of subscribers are more than seven) along with Form INC 22, and Form DIR 12.

Incorporating a company through Simplified Proforma for Incorporating Company electronically (SPICe -INC-32), with eMoA (INC-33), eAOA (INC-34), is the default option and most companies are required to be incorporated through SPICe only. Stakeholders can avail of 5 different services (Name Reservation, Allotment of Director Identification number (DIN), Incorporation of New Company, Allotment of PAN and Allotment of TAN) in one form by applying for Incorporation of a new company through SPICe form (INC-32). 

A Section 8 company (Companies with Charitable Objects) can also be incorporated using SPICe form but after reserving a name using INC-1 or it can file Form INC -7 along with INC 22 and DIR-12.

"Few Important aspects about Section 8 Companies i.e. Non -Profit Organization "

  1. Section 8 Company can be a Private Company or Public Company.
  2. Section 8 Companies are not allowed to Pay Dividend to its members.
  3. Alteration of MOA and AOA of Section 8 Companies can be done only with the Approval of Central Government.
  4. A Partnership firm may be a Member of Section 8 Companies.
  5. Section 8 Company shall amalgamate only with another Section 8 Company having similar objects.
  6. Proxy need to be a Member of Section 8 Companies 
  7. Section 8 Company can accept Foreign Contributions only after getting a certificate of Registration under  Foreign Contribution (Regulation) Act, 2010.
  8. Section 8 Companies may have any number of Directors.
  9. A person who is holding office as Director in more than 20 Companies can still be appointed as Director in section 8 Companies.
  10. General meeting of Section 8 Companies can now be conducted with notice of 14 days before the meeting




Comments

Post a Comment

Popular posts from this blog

What is Corporate Identity Number (CIN)?

Image
Corporate Identity Number ( CIN ) , is a unique 21 digit Alpha-Numeric Code issued by Ministry of Corporate Affairs (MCA) for all the Companies registered under Companies Act, 2013.  Here in the example above, we have taken CIN of Reliance Industries Limited (RIL) from MCA Website  and code is broken into different categories for reader to understand the structure of CIN with ease. 1) Listing Status - First Alphabet First Letter (alphabet) of CIN suggests Listing Status of the Company. Where L  indicates, the Company is listed on recognised stock exchange in India and U indicates it is unlisted Company 2 to 5) Industry Code - next 5 numbers Immediately, after Listing status, CIN has 5 numeric digits which represents Industry Code of the Company. Every Company, registered under Companies Act, 2013, has a Main Object. All those main objects are divided into few broad categories and these 5 digits represents the major activity or the industry of the Company. Click
Read more

Conversion of LLP into Company

The concept of Limited Liability Partnership (LLP), was introduced in India by way of Limited Liability Partnership Act, 2008 and LLP Rules, 2009. As name suggest, in case of LLP, all partners have limited liabilities.  LLP is hybrid of Partnership Firm and Company, it is an alternative corporate form of business organization which gives the benefits of limited liability of a Company and the flexibility of a Partnership. As per LLP Act, read with relevant Rules, any other form of business such as a partnership set up under the provisions of Indian Partnership Act, 1932, a private limited company and an unlisted public limited company can convert itself into LLP pursuant to the provisions of LLP Act, 2008. However, neither of LLP Act nor Companies Act, 1956 provided a provision for conversion of LLP into Private Limited Company. However, with Companies Act, 2013 a provision of conversion of LLP into Private Company was introduced under Section 366 of the Companies Act, 2013. Secti
Read more

Website – Compliance under Companies Act, 2013

What is Website? A Website is a set of related web pages located under a single domain name. Commonly it is also known as virtual address and website of a Company gives company a virtual existence on the internet. In current world, having a website is must for every Business. The Internet has grown at an incredibly fast speed, reaching 3.68 billion users (40% of world’s population) by December 2015. Today, it is almost criminal for a business to not be online. Does Companies Act, 2013 mandates Company to have its own website like Registered Office address? Answer is NO. It is not mandatory for Company to have its own website. The Companies Act, 2013, Rules or notification issued under the Companies Act, 2013 does not mandates the Company to have its own website. However, for Listed Companies, Securities and Exchange Board of India (SEBI), has made it mandatory to maintain a functional and updated website with effect from April 2011 [Initially under Listing Agreement and t
Read more