Section 8 company- Details,Registration procedure,Documents required

Last Updated On: Aug. 11, 2020, 10:59 p.m.
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SECTION 8 COMPANY

The Companies Act, 2013 defines Section 8 company as one whose objectives are to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.

In India, the organization which has the objective of promoting in these fields or similar to them can be registered as Section 8 company except being registered as a Society or Trust.

 

Eligibility to register for section 8 company:

  • When the company intends to promote science, commerce, education, art, sports, research, religion, charity, social welfare, protection of the environment or alike other objectives
  • When the company holds an intention to invest all the profits (if any) or any other income generated after incorporation in the promotion of such objects only
  • When the company does not intend to pay any dividend to its members.

Companies Act, 2013 deals with the procedure of Incorporation of a Section 8 Company and as per this section, an application in Form No. INC.12 has to be submitted along with the below-mentioned documents to the Registrar of Companies.

1. Form no. INC – 13 – Company’s Draft Memorandum of Association (MOA) and Articles of association (AOA) in Form No. INC – 13 (as specified in Act) along with the affixation of subscribers’ photographs.

2. Form no. INC-14 – A Declaration is to be affixed in Form no. INC-14 that the draft MOA & AOA are compliant with the provisions & norms of section 8 and the requirements as per Section 8 have been duly taken care of.

3. Form no. INC-15 – A declaration in Form no. INC-15 on stamp paper & notarized by each member of the company who is applying.

4. Form no. INC-9 – Form no. INC-9 form first directors as well as each subscriber, on the relevant State’s stamp paper and appropriately notarized.

 

PROCEDURE FOR INCORPORATING A SECTION 8 COMPANY:

A. Firstly, Make a list of these following documents:

1. For the application of DSC, self-attested copy of:

Photo ID – PAN/Voter ID/Driving License

Address Proof- Voter ID, Bank Statement, Utility Bill. (Bank Statement and utility bills should not be older than last 2 months)

Photo’s of the applicant (even Soft copy will serve the purpose)

 

2. Name Availability:

The proposed name must use the word Foundation, Association, etc. is mandatory for Section 8 company.

 

3. For SPICE+ form– Application for Incorporation Certificate.

  • Memorandum of Association
  • Articles of Association
  • PAN of the subscribers to the Memorandum (1st Directors of the company)
  • Proof of ID and Address of the subscribers to the Memorandum. (Refer the help kit for eligible proofs)
  • Notarized Rent Agreement of the Registered Office.
  • NOC from the owner to use the premises
  • Utility bill of the premises, not older than last 2 months
  • Declaration under form INC 15, from all the directors
  • Declaration under Form INC 14 by the Chartered Accountant
  • Estimated Income and Expenditure for the next 3 years in the Prescribed Format.

4. For AgilePro:

  • Name of the Bank, where a company is willing to open the Bank Account.
  • Specimen Signature for EPFO
  • NOC for opening a bank account
  • Declaration of Authorised signatory for GSTN

Step 2:

1. Check the NAME availability by the RUN utility,

2. Login to MCA website and go to:

MCA services>RUN (You cannot access the RUN without Login)

3. Fill in the form online, attach the object clause, and Submit. (it is advisable to attach the detailed object clause in the attachment option)

Most Important: The validity of the approved name is for 20 days, so once the Name is approved, SPICE+ needs to be filled within 20 days from the date of name approval.

Step 3:

Filling of Web Form Spice +

Once the name is approved, the Spice forms will be enabled for further process. As per the recent amendments in incorporation procedures, pdf forms are replaced with the Web Forms, which are filled online and downloaded only for the purpose of affixing DSC.

 

Procedure to fill the Web Form:

1. Login to MCA website

2. Go to MCA services> Spice +

3. Select Existing Application

4. Fill in the complete form and keep saving the form on a continuous basis. Note: the session gets expired in every 15 mins as it is a web form)

5. Attach all the documents in the Attachments section, each attachment should be attested by the directors and MUST have Dated and Place mentioned. (There are chances of Rejection in the absence of the above details).

6. Once the form is complete with all the attachments, scrutinize the form and Submit.

7. Along with Spice, also fill the INC9 and Agile Form.(An agile Form is again a web form, while INC9, is to be filled offline).

8. After Submission, the download option is enabled, download the forms for verification and affixing DSC.

9. Submit all the 3 Forms as LINKED Forms at the MCA website, with the required fees.

10. Once the SPICE and AGILE is approved, License No. and Incorporation Certificate is granted which will have Date of Incorporation, Company Identification No. (CIN), PAN and TAN of the company.

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