The Ministry of Corporate Affairs (MCA) in its notification dated 24th February 2020 has notifi...
If any individual is thinking to start or run and establish an NGO (Non Governmental Organisation/ Non Profit Organisation) than the same can be established through acquiring a License under Section 8 companies. To promote the idea of Incorporation of section 8 companies, Government has made the process easier by dispensing the requirement of obtaining license by filling form INC-12. For Section 8 Company incorporation in India you need to file SPICe form INC-32 which is a Simplified Performa for Incorporating Section 8 Company electronically. This is a single point application for reservation of company name, allotment of DIN for Director and Incorporation of new company along with allotment of PAN & TAN. In this article we will discuss the Section 8 Company Incorporation Update in detail;
Section 7 of companies act, 2013 provides the procedure for incorporation of the company. NGO and Non – Profit organizations in India exits in three different legal forms which are;
The objective of section 8 companies is to promote art, commerce, charity, education and social welfare religion, protection of the environment, or any such other objects. The total income incurred from such companies shall be utilized only for the charitable work, and no dividend shall be paid to any of the company members. After completing all kind of documentations an incorporation certificate will be provided by the central govt.
Ministry of companies (Incorporation) by 6th amendment rules, dated 7th June 2019 which prescribe that application for the incorporation of section 8 company along with the application of license will be submitted through Form- 32 (SPICe). However, the licensing procedure for the existing Section 8 Company will be continued the same through Form INC-12.
Another change which will take place post this new amendment is that earlier Registrar of Companies (RoC) was holding the power to grant the license for the section 8 and now post this amendment, the power to grant of License will be now with the Central Registration Center (CRC).
Rule 9 provides that an application for reservation of a name shall be made through RUN facility available at www.mca.gov.in website. The criteria for reserving the name is that section 8 company shall include the words Foundation, Forum, Association, Federation, Chamber, Confederation, Council, Electoral Trust, etc…
Maximum 2 names can be purposed at a time and 1 resubmission is allowed in the RUN facility.
Memorandum of Association and Article of Association both are the two important charter documents, which are important as to regulate business’s dealings with the outsider and control internal functioning, respectively.
The ministry has introduced an online variant of it, now users can obtain approved e-MOA (INC-33) and e-AOA (INC-34) through certified copies facility available on the website of MCA.
Ministry of corporate has notified a new E- Form AGILE- Application for Registration of the Goods and Service Tax Identification Number (GSTIN), Employee State Insurance Corporation (ESIC) registration and Employee Provident Fund Organization (EPFO)
With effect from 31st March 2019, it is mandatory to file the application (SPICe) for the incorporation of a company which shall be accompanied by a linked e-form INC-35 (AGILE). This AGILE form is a part of SPICe Incorporation e-form and covers three important registrations for businesses namely:
By filing the e- form AGILE along with the SPICe form at the time of registration; the company automatically would be enrolled for GST, Employee State Insurance Corporation (ESIC) and Employees Provident Fund Organization (EPFO).
This process will be applicable only for Companies incorporated by MCA through SPICe application. The others shall follow the existing process of registration through Common portal for GST Registration.
The address of the registered office of the company, as provided in SPICe application, shall be the principal place of business for GST application as well.
Once the company is incorporated at MCA portal and COI and PAN has been successfully generated, required information will be forwarded to ESIC for processing of the form. Once the data is successfully validated by ESIC, employer code will be generated and will be displayed on the MCA portal.
Documents required for Director
Documents for Shareholder
The identity and address proof of all the company shareholder must be furnished on behalf of all the shareholder of the company. If such a shareholder is a corporate entity or Association of the person (AoP), a certificate of Incorporation of the Body corporate must be attached along with the resolution passed by the body corporate to subscribe to share of the company under Incorporation.
Govt. with such reforms on various old models or on old rules, try to ease the business process in India. The new Update will make the Section 8 Company Incorporation process more easy and quick, which will benefit the company as well as the Startup India Scheme.
Our recommendation: NGO & Section 8 Registration in Delhi.