With the ease in incorporation procedure for Company , MCA has come out with another notification that waives off filing of form INC-12 for Section 8 Companies, form INC -12 was required to be filed to ROC after obtaining name approval of the Company for obtaining Licence for Section 8 Company. Once the Licence for Incorporation of Section 8 company is obtained , the Company Incorporation application in SPICE form can be filed.
Now MCA has substituted the Form INC -12 with SPICE form and SPICE form to be amended accordingly.
Further in case of draft memorandum , the word Memorandum , further this also eases the incorporation process , as draft MOA was required to be filed with INC-12 earlier when applying for section 8 Company licence.
In case of Existing Company Company wants to Apply for conversion into section 8 company , the form INC -12 will be required to file for Application for grant of License to an existing company under Section 8
Section 8 Company is a Company Incorporated for the promotion of Commerce, Art, Science, Sports, Education, research, social welfare, religion, charity, protection of environment and intends to apply its profits if any in promoting its objects , not for-profit (NGO) under the Provisions of Section 8 Companies Act, 2013.
The Company under section 8 is registered without the word Limited/Private Limited at end of its name, and the words Foundation, Association, Institution, Chamber, Federation are added in the name of Section 8 company.
Presently section 8 company is a most accepted form of NGO due to transparency and governance structure available to the company with the compliance of provisions of Companies Act, 2013.
Activities of Generally carried out through Section 8 Company :
- Educational Institute
- Hospital and Research Center
- Sports Academy
- Charity Purpose
- Environment Awareness
- Legal Awareness
- Chamber, etc
Requirements for Incorporation of Section 8 company :
- Required Minimum two Directors
- Required Minimum two Shareholders/Members
- PAN, Aadhar Card and Latest Bank Statement Copy of All the Directors and Members
- Work Proposed to be done, Grounds on which work will be done
- Proposed Income and Expenditure Account for three years ( Expected receipts and payments )
- Electricity Bill, Rent Agreement / NOC for Registered Office Address of the Company
Procedure for Incorporation of Section 8 Company:
- Application for Obtaining Digital Signature of proposed Directors
- Application of Obtaining Director Identification Number (DIN)
- Name Approval Application to Registrar of Companies
- Application for obtaining Licence for Section 8 Company
- Application to Registrar of Companies for Incorporation of Section 8 Company
Documents Required for Opening Bank Account of Section 8 Company:
- Certificate of Incorporation issued by ROC
- Memorandum and Articles of Association of company
- PAN of Company
- Board Resolution for Opening of Bank Account and Authorising One of the Directors or any other person to act as Authorised Signatory
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