Simplification of the Process of Incorporation of Section 8 Companies (MCA Update)

In a recent notification, the Ministry of Corporate Affairs provided for simplification of Section 8 Company Incorporation process.

The notification reads,

“1) With a view to simplifying the process for incorporating Section 8 Companies, the requirement of prior filing of INC-12 for new section-8 companies is being dispensed with vide the Companies(Incorporation) Sixth Amendment Rules, 2019 dated 7th June 2019^[1].

2) Henceforth, Section 8 Companies can be incorporated by either reserving names through Run and filing SPICe thereafter or by directly filing SPICe. Licence No for a section 8 company shall henceforth be allotted at the time of incorporation itself.

3) In view of the above, all pending INC-12 SRNs for new Companies pending at respective RoCs would be marked as ‘Rejected’ on 15th August 2019. Such applicants may thereafter directly file SPICe for obtaining License Number and for the incorporation of Section 8 Companies.

4) Stakeholders who have already obtained License Numbers and are yet to file SPICe form for incorporating Sec 8 companies may do so at their convenience but may please note that the forms shall be processed only after a certain time lag to allow for workflow changes to take effect.

5) Those stakeholders who have already filed SPICe forms which are pending at CRC may kindly await processing of these forms after the workflow changes take effect.” – As per the Ministry of Corporate Affairs.

The Major changes;

Earlier, filing of INC-12 was required for the incorporation process of Section 8 Companies. However, now the step of filing this form is eliminated. They can now reserve name through run form and proceed to file SPICe Form or directly file the SPICe Form.