Section 8 Company Registration Services in Purnea

A non-governmental organization (NGO) usually termed as non-profit Organisation usually deliver resources or serve some social or political purpose. NGOs or Non-profit Organisation are primarily concerned with promoting a cause and engaged in a wide range of activities.Non-profit Organisation or charitable institution in India can be registered in three ways i.e., either it can be registered as Trust, or Society or a Section 8 Company. According to The Companies Act,2013 Section 8 Company can be incorporated to promote Art, Science, and Commerce, education, Sports, Social Welfare, Research, Charity, Religion, Environment and similar objects.These companies are not seen doing activities of manufacturing, but are mere service providers, they solely works for the betterment of the general public.

Tax deduction under Income Tax Act, no stamp duty registration are certain benefits given to Section 8 Company. Income of such company are also exempted if it is registered under 12-A of Income Tax Act. Registering under section 80G of Income tax, the donor to the company gets deduction about 50% from their taxable income and some qualify at the rate of 100%. To avail all the benefits, registration and obtaining license is a must. Central government issue license to Section 8 Company upon submission of certain documents. After obtaining license, it can be used to avail many benefits.

Section 8 Companies are more reliable to general public also due to their easy management, registration under Registrar of companies and effective objectives.

Section 8 company registration in India is unique and different concept. It is an non profit entity engaged in social work for the benefit of the country. The registration can be divided into three parts:

• File for Incorporation: After getting the license, we need to file for incorporation and once company is incorporated, you can start the social work under this company.
• File for License: After getting name approved, the next step is to prepare all the documents and then apply for license to the Regional director via form INC 12. This approval takes most of the time.
• Prepare DSC and file Name Approval: The first step is to prepare Digital Signature Certificate (DSC) and Director Identification Number (DIN). This takes sometime one to two days. after that, you need to file for name approval. The name should be unique and should end with words like foundation, sanstha etc.

• Minimum two people required for registration of Section 8 Company
• Obtaining Digital Signature Certificate (DSC) for proposed Directors not having Directors Identification Number (DIN)
• Obtaining DIN from Ministry of Corporate Affairs by filing Form DIR-3, if not having DIN
• Filing of Form INC-1 for Reservation of Name
• Post approval of name from the concerned Registrar of Companies, file Form INC-12 {pursuant to Section 8 (1) of the Act and Rule 19 of Company (Incorporation) Rules, 2014} (the Rules)

DSC/ DIN – To obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all the proposed Directors of the Company if they don’t have the same.

Name Approval – An application in Form No. – INC 1 has to be filed with ROC (Central Registration Centre (CRC) of MCA) for name approval of proposed Section 8 Company. The Applicant can give maximum six names in order of preference. The name once approved by the authority is valid for sixty days. Please take note that the name of the Section 8 company shall include any of the following word i.e. Foundation, Forum, Association, Federation, Chambers, Confederation, Council,  Electoral Trust and the like etc in accordance with Rule 8(7) of the Companies (Incorporation) Rules, 2014.

Amercement – If a company makes any default in complying with any of the requirements laid down in this section, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees, or with both; Provided that when it is proved that the affairs of the company were conducted fraudulently, every officer in default shall be liable for action under section 447.

MOA and AOA – After obtaining name approval, MOA and AOA is to be drafted and then filed with the RoC along with other documents in e-Form INC 12 for the issuance of license under section 8 of the Companies Act, 2013.The subscription pages of MOA and AOA company shall be signed by each subscriber to the memorandum who shall mention his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, description and occupation, if any.

Certificate of Incorporation- If the Concerned ROC is satisfied with the incorporation forms, a Certificate of Incorporation is issued by the Registrar of Companies along with a unique Company Identification Number (CIN).

Rule 8(6) the Companies (Incorporation) Rules, 2014 provides that the Central Government may, by order, dismiss the licence granted to a company if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence was granted or the affairs of the company are conducted fraudulently or in a manner violative of  the objects of the company or prejudicial to public interest. Without prejudice to any other action against the company, the Central Government may direct the company to convert its status and change its name to add the word ‘Limited’ or ‘Private Limited’ to its name and therefore the Registrar shall, without partiality to any action that may be taken, on application, in the prescribed form, register the company accordingly. Such order shall not be passed unless the company is given reasonable opportunity of being heard. A copy of such order is to be given to the Registrar.The Central Government may direct the company, the licence of which has been cancelled, if it is satisfied that it is essential in the public interest, to be wound up or amalgamated with another company registered under this section. Such order shall be passed only after giving reasonable opportunity to the company of being heard. in course of union, the Central Government may provide for such union to form a single company with such constitution, properties, powers, rights, interests, authorities and privileges and such liabilities, duties and obligations as may be specified in the order.

• A statement specifying briefly the grounds on which the application is made;
• A declaration in prescribed form on non – judicial stamp paper by each person making an application;
• Memorandum & Articles of Association of the proposed company;
• A declaration confirming the application by a Company Secretary in Practice on the Non – Judicial stamp paper of prescribed value;
• A statement showing details of assets and liabilities of the company as on date with the application;
• List of names, descriptions, addresses & occupation of the promoters as well as Board Members of the proposed company;
• A letter of authority;
• Payment of prescribed fee
• An estimate of future annual income and expenditure of the proposed company, specifying the source of income and object of expenditure;
• A statement giving brief description of work, if any, already done by the association;

Filing of Incorporation Forms on MCA Portal: The following forms are required to be filed with the RoC after issuance of license:

• Form No. INC – 7 (declaration of compliance with the requirements of the Act on application for registration of a company);
• Form No. INC – 22 (notice of situation of registered office);
• Form No. DIR – 12 (appointment of directors of the company);
• A Power of Attorney to be executed by subscribers and proposed directors (authorisation by the promoters of the company to a person/s to carry out appropriate changes as suggested by the RoC in any of the incorporation papers that have been filed).