INCORPORATION OF SEC-8 COMPANY
INCORPORATION OF SEC-8 COMPANY
Moving from
the Companies Act 1956 to the Companies Act 2013 is like
shifting from your old house to a new one. All the provisions become changed
with new Act, 2013. Due to new act many amendments were introduce by Central
Government from time to time by Notification, Amendments etc. Same like this
many amendments have been made in last approximately 4 years in relation to
Incorporation of New Company.
INTRODUCTION
The concept of Non-Profit making Company is
quite old in India. In erstwhile, Companies Act, 1956 it was regulated by
Section 25 and that is why it was popular as Section 25 Company. However in
Companies Act 2013 provisions related to Non-Profit making Company are given in
Section 8 read with Rule 19 and 20 of Companies (Incorporation) Rules, 2014.
Under Indian law, 3 legal forms exist for
NGO or Non-Profit Organizations:
1.
=> Trusts
2.
=> Societies
3.
=> Section 8 Companies
Due to better laws, Section 8 Companies
have the most reliable strongest organizational structure
1.
=> Indian Trusts have no central law.
2.
=> Indian Societies have different legal
and institutional frameworks from state to state.
3.
=> Indian Companies (incl. Sec 8
companies), have one uniform law across the country –
Companies Act, 2013.
It is this robust Act that regulates the
formation, management and accountability of a Section 25 company, thus making
it more closely regulated and monitored than trusts and societies, and
recognized all over the world.
Through this article we shall talk about the
basic provisions and procedure for incorporation of a Non-Profit creation Company
as given in Section 8 read with Rule 19 and 20 of Companies (Incorporation)
Rules, 2014.
Section 8 Company or a Non-Profit
organization (NPO) is a Company established for promoting commerce, art,
science, religion, charity or any other useful object, provided the profits, if
any, or other income is applied for promoting only the objects of the Company
and no dividend is paid to its members.
A NPO/NGO
can be formed for promotion of any useful object like sports, education,
research activities etc. The term Non Profit does not mean that the Company
cannot generate profit or income, but it essentially means applying the income
for further promotion of the object and not for distributing it to the
promoters. It means that the Company can earn profits but the promoters cannot
be benefited out of those profits.
Corresponding
provisions of the Companies Act, 1956:
Section 25
Section 25
Corresponding
provisions of the English Companies Act, 2006:
Sections 42, 181 and 226
Sections 42, 181 and 226
A
COMPANY INCORPORATED UNDER SECTION 8 OF THE COMPANIES ACT 2013 IS:
As per
Section 8 (1): A Non-Profit making Company is a Company which:
(a) Has in its objects the promotion of
commerce, art, science, sports, education, research, social welfare, religion,
charity, protection of environment or any such other object;
(b) Intends to apply its profits, if any, or
other income in promoting its objects; and
(c)
Intends to
prohibit the payment of any dividend to its members.
IMPORTANT PROVISIONS:
IMPORTANT
PROVISIONS RELATING TO SECTION- 8 COMPANIES:
Ø
These Companies are incorporated only for promotion of
commerce, art, science, sports, education, research, social welfare, religion,
charity, protection of environment or any such other object.
Ø
Non- Small Company: As per Section 2 (85)
Proviso(B) – Section-8 Company will not be
treated as Small Company.
Ø
Status of Limited Company: As per Section 8(2) –
Section 8 Company shall enjoy all the privileges and be subject to all the
obligations of Limited Company.
Ø
It is the duty of Company to prove to Central Government that
it will incorporate for above mentioned purpose only.
Ø
License by Central Government: The Central Government may issue license with such
conditions as it deems fit and allow the registration of such person or
association of persons as a limited company without the addition to its name of
the word “Limited”, or as the case may be, the words “Private Limited”.
Ø
Power of ROC: The power of the Central government is delegated
to the Registrar of Companies (‘ROC’) having Jurisdiction over the area where
the Registered office of the company is proposed to be situated. Hence,
the application for registering such Company is to be made to the ROC.
Ø
Firm as a member of Non-Profit Making Company: As per section 8(3) a
partnership firm may become a member of the Non-Profit making Company
registered under section 8. Membership of such firm shall cease upon
dissolution of the firm. However, partners of the dissolved firm may continue
to be the members of such Company in their individual capacity
Ø
Key Benefits:
·
Many privileges and exemptions under Company Law vide
notification dated 05th June, 2015.
·
Exemption of Stamp duty for registration.
·
Registered partnership firm can be a member in its own
capacity.
·
Tax deductions to the donors of the Company u/s. 80G of the
Income Tax Act.
Ø Without Share Capital: These Companies can be
formed with or without share capital, in case they are formed without capital,
the necessary funds for carrying the business are brought in form of donations
, subscriptions from members and general public.
Ø Not Required To Add The Suffix: Section 8 Companies are not required to
add the suffix Limited or Private Limited at the end of their name. All Companies having
limited liability are required to use the term ‘limited’ or ‘private limited’
as the case may be in their names as required by section 13. But section 25
companies are allowed to dispense with the use of term ‘limited’ or
‘private limited’ from their names [sub-sec. (6)]. This helps the Company
to enjoy limited liability without disclosing to the public the nature of
liability of its members.
Ø Suffix that can be use for incorporation: The name shall include the words
Foundation, Forum, Association, Federation, Chambers, Confederation, council,
Electoral trust and the like etc.
At present following
words are not allowed for Incorporation of Section 8 Company; “Organization”,
“Institute”, “word other than mentioned above” Earlier
these words were allowed for incorporation of Section 8 Company and even there
are many section 8 companies ending with such prefix. Therefore, It can be opine “and the like etc”
can’t use for incorporation of Section 8 Company as per latest Resubmissions or
Rejections.
Ø Easy
Transferable Ownership: The
shares and other interest of any member in the Company shall be a movable
property and can be transferable in the manner provided by the Articles, which
is otherwise not easily possible in other business forms. Therefore, it is
easier to become or leave the membership of the Company or otherwise it is
easier to transfer the ownership.
DISADVANTAGE:-
The DISADVANTAGES of
section 8 Companies over other Companies registered under Companies Act are
discussed below:
Though a Section 8 Company
has many advantages and enjoys many privileges yet there are some statutory
obligations which are required to be complied with and taken care of by such
companies.
Ø
Key Conditions:
·
Profit or Income of the Company shall be applied for the
promotion of the main object.
·
Declaration of dividend or distribution of profit to the
promoters is not allowed.
·
No member shall be appointed as a remunerated officer.
·
No remuneration / benefit shall be paid to a member being a
servant / officer of the Company (except reimbursement of out of pocket
expenses, reasonable interest on money lent or reasonable rent on the premises).
Ø Utilization
of Profit: A
Section 8 Company has to ensure that its profits and all other incomes are
utilized only for the purpose of promoting its objects and not for any other
purpose.
Ø It should also ensure that
its profits are not distributed as dividend among its members.
Ø No
Change in AOA and MOA: A Company registered under this section shall not alter the
provisions of its Memorandum or Articles except with the previous approval of
the Central Government.
Ø Condition by
Central Government:
If the Central Government has imposed some conditions and regulations upon the Company
for granting a license under section 8 then such a Company is bound by such
conditions and has to ensure adequate compliance with them. Where such
conditions and regulations have been imposed then such conditions and
regulations are required to be included in the Articles or/and Memorandum of
the Company as may be directed by the Government.
Ø Tax
Liability:
Section 25 Company is regarded as a ‘Company’ within the meaning of the Income
Tax Act, 1961 and as such its income is taxable according to the applicable
rates similar to those applying to other Companies.
THE
PROCEDURE FOR INCORPORATION OF SECTION-8 COMPANY IS AS FOLLOWS:-
PRE INCORPORATION:
1.
NORMAL CONDITIONS:
·
At
Least 2 Promoters: Promoters who will promote/ incorporate the Company.
Promoters may be individual or body corporate.
·
At
Least 2 Directors: Directors should be individual only. No Body corporate/ HUF
or Partnership Firm can be appointed as Directors.
·
Generally,
in most of the cases, Promoters and Directors are the same in Private Limited
Companies.
2.
OBTAIN DIGITAL SIGNATURE-
All the Subscribers required DSC. As per
Ministry of Corporate Affairs, Class-II DSC is required for e-Filings under
MCA21. Subscriber can apply with any of DSC Vender i.e. E
Mudra/ Siffy/ TCS etc
3.
OBTAIN DIN- As
envisaged under section 153, an individual intending to become Director needs
to obtain DIN. In case of proposed director doesn’t having DIN, in such case he
have to apply for DIN along with Incorporation in SPICE INC 32 Form.
process
of incorporation
STEP – I: Apply for Name Approval:-
A.
Login on MCA Website
Applicant have to login
into their account on MCA Website. (Pro-existing users can use earlier account
or new users have to create a new account.)
After Login use have to
click on the icon “RUN” in MCA
Service. An online form shall be open. Applicants have to fill the information
online. (This form can’t be download)
Note* since 26th January, 2018 e-form INC-1
has been omitted from the Companies Act, 2013.
B.
Details required to be mentioned in online form:
(i)
Entity type (i.e. Part
I, OPC, Section 8 etc.) (below table taken from
MCA link: http://www.mca.gov.in/MinistryV2/runServicerFAQ.html)
(ii) CIN (Corporate Identification Number and it has to
be entered only when an existing company wishes to change its name and is
using RUN to reserve a new name)
(iii) Proposed name
(Auto Check Facility)
(iv) Comment (Mention Objects of the proposed Company
and any other relevant information Like Trade Mark etc.)
(v) Choose File (Any attachment)
C.
Choose File:
This option is available
to upload the PDF documents. If applicant want to attach any file, can be
upload at this option.
D.
Submission of Form on MCA Website:
After completion of
above steps user shall submit the Form with MCA website.
E.
Payment of Fees:
There is no option of
pay later challan in RUN. Applicant has to pay fees immediately after
submission of form. After payment challan shall be generated.
I.
Validity of Reserved Name:
Reserved name shall be
valid for 20 days from the date of approval of Name.
v
Two
Names: Two Proposed Names can be given and payment of Rs. 1,000/- through
Credit/ Debit Card or Net Banking.
It
has to also be ensured that the name being sought for is available and it is
lawful. No need to add the suffix Limited or
Private Limited at the end of their name.
Quick Question - RUN
i.
Whether DIN or DSC required for filing of Run form?
DSC & DIN not required for filing of RUN form
for reservation of Name. Only account of MCA portal is mandatory.
ii.
How many resubmission options are allowed in RUN?
One Resubmission of
application is allowed in case of reservation of Name.
iii.
What shall be the validity of the Name after approval?
i.
Reserved name shall be
valid for 20 days in case of allotment of name for New Company.
iv.
How many name can be apply through this form?
Only Two Names can be mentioned in RUN form.
Earlier INC-1 allowed 6 names according to the preference.
v.
What shall be the government fees for RUN?
As per Register office Fees Rules, Fees shall be
Rs. 1,000/-
vi.
Is it mandatory to attach documents while reserving name?
No.
It is mandatory to attach relevant documents and No
Objection Certificates(NOCs) only when a name which requires the
approval of a Sectoral Regulator or NoC etc. if applicable, as per the
Companies(Incorporation) Rules, 2014, is being applied for.
Please note that only one file is allowed to be
uploaded as an attachment and the size of the file should not exceed 6MB. In
case of multiple attachments, please scan all documents into a single file not
exceeding 6MB in size, and then upload the same.
vii.
Whether there is any requirement to mention details of Directors in the
RUN?
No, there is no need to mention the name or number
of proposed Directors in RUN.
NOTE: *
Approval of Name through “RUN” is an Mandatory way. Companies can’t Directly
apply for Incorporation Directly in SPICE form.
AFTER NAME APPROVAL PROCESS:
Once Name is approved by ROC,
following are the Pre-Incorporation
Steps:
DRAFTING
OF MEMORANDUM OF ASSOCIATION (MOA) AND ARTICLE OF ASSOCIATION (AOA):
Drafting
of Memorandum of Association (MOA) and Article of Association (AOA) is
generally a step subsequent to the availability of name made by the registrar.
It should be noted that the main objects should match with the objects shown in
RUN.
These
two documents are basically the charter and internal rules and regulations of
the Company. Therefore, it must be drafted with utmost care and with the advice
of the professional. The Directors/ promoters with the help of professional
draft MOA and AOA.
AOA:
Article of Association contains
the internal regulations of the Company so care should be taken while drafting
it. The model articles are given under table F of Schedule I. Now under
Companies Act, 2013 requirement for making alteration to certain clauses of AOA
can be made more stringent by way of inserting entrenchment provision.
Also ensure that the MOA &
AOA are not ultra-vires the law (Section 6)
MOA:
§
The formats of MOA are given in Form
INC-13.
§ Format of MOA and AOA
revised from time to time because of change in Companies Act and recently
Companies Act 2013 laid down another form of MOA which has total twelve clause.
§ MOA of Section 8 Company
registration (previously called
section 25 company) has been prescribed in form INC-13 by the Companies Act
2013 followed by rule 19 sub rule 2 of Companies Incorporation Rule 2014.
Procedure
for drafting MOA of section 8 Company
start from:
1st
clause which contain name of the section 25 or 8 company example XYZ
Foundation or XYZ association etc.
Second
clause state to mention state in which registered office of the
proposed section 8 Company will be situated example NCT of Delhi for Delhi or
State of Haryana for Haryana etc.
Third
clause of INC-13
i.e. MOA contains charitable object of section 8 company
i.e. to establish industrial training center or college or social service
center etc. i.e. only object having charitable purpose and restricted company
to support with its fund which will make trade union or other company which are
observed by its member.
Clause
4 of moa clearly mention
that object of the company extend whole of India except J & K.
Clause
5 of the MOA restricted
diversion of section 8 company income or property to any of its member or its
related party in any form. It has also been clarified that profit of such
company can only be utilized for its charitable object. Prudent Remuneration
allowed to its member only when he actually provides services to the company.
Clause
6 provides that Memorandum
of Association cannot be altered
unless alteration has been previously approved by the registrar of company
Clause
8 state liability of the
member is limited
Clause
8 contain information
about share capital of the company.
Clause
9 required to maintain
certain record and books for expenditure income assets etc. and once in an
every year accounts shall be examined by auditor about correctness of balance
sheet and income & expenditure.
Clause
10 mentioned about
dissolution of Section
8 Company and whereas
Clause
11 states section 8
company can be amalgamated only with section eight company having similar
object and
Clause
12 contains detail of
subscriber of MOA. Format of AOA of section eight company is same as for Private Limited
Company registration.
STEP – II: Application for License under Section 8 of the Companies Act
2013:
An Application for License under Section 8 shall be
filed in form INC
12 with following attachments:
S. No.
|
Attachment
|
Details
of Attachments
|
A.
|
AOA
|
Article of Association
|
B.
|
MOA
|
Memorandum of
Association as per Form INC-13
|
C.
|
INC-14
|
Declaration By Professionals
Pursuant to section 7(1) (b) and rule 19(3)(b) of
the Companies (Incorporation and incidental) Rules, 2014:
Require to take a Declaration from Professionals
Like:
( Advocate, CS-CA-CWA),
Giving declaration that, all the requirements of
Companies Act, 2013 and the rules made there-under relating to registration
of the company under the Act and matters precedent or incidental thereto have
been complied with. On Stamp Paper, Value of Stamp Paper as per the State
stamp Act (State: Where register office of Company will be situated).
In DELHI value of Stamp paper is Rs.10 /-.
(ATTACHED LIST BELOW). Professional will sign the declaration and will
mention Date, Place and Membership No.
|
D.
|
INC-15
|
Declaration By Promoters:
[Pursuant to
rule 19 (3)(d) of the Companies (Incorporation and Incidental) Rules, 2014]
Require to take a Declaration from Prmoters Like:
Giving declaration that,
Ø The
draft memorandum and articles of association have been drawn up in conformity
with the provisions of section 8
Ø All
the requirements of the Act and the rules made there under relating to
registration of the company under section 8 and matters incidental or
supplemental thereto have been complied with;
On Stamp Paper, Value of Stamp Paper as per the
State stamp Act (State: Where register office of Company will be situated).
In DELHI value
of Stamp paper is Rs.10 /-. (ATTACHED LIST BELOW). Professional will sign the
declaration and will mention Date, Place and Membership No
|
E.
|
Estimated
Annual Income
|
An estimate of the future annual income and expenditure of the company
for Next Three Years,
specifying the sources of the income and the objects of the expenditure.
|
F.
|
Brief profile
Of all the promoters.
|
Profile of
Promoters Like:
Ø List of names, descriptions, addresses &
occupation of the promoters as well as Board Members of the proposed company.
Ø ID Proof, Directorship, Shareholder ship etc
|
DUTY OF REGISTRAR TO SCRUTINISE
THE DOCUMENTS:
If after filling the Requisite forms for
incorporation with the Registrar of Companies along with fees, ROC is satisfied
with the contents of the documents filed, ROC will issue the Licence in form
No. INC.16 under section 8(1) read with rule 19 of Companies (Incorporation)
Rules, 2014. Such company registered under section 8 shall enjoy all the
privileges and be subject to all the obligations of Limited Companies.
STEP – III: Preparation of Documents for Incorporation of Company:
Form
|
Attachments
|
|
INC-7
|
1.
Memorandum of Association
2.
Articles of Association
3.
Affidavit from Subscribers and Directors in INC-9
4.
Copy of PAN Card
5.
Copy of ID proofs
6.
Copy of Address Proofs
7.
Directorship/Promoter ship in other companies(if more
than 3)
8.
Copy of License received from Competent Authority.
9.
Consent in DIR-2 along with ID& Address proof
1.
Utility Bill, not older than 2 months old
2.
Proof of
registered office address
10. No objection
certificate in case registered office is not taken on lease
|
MANDATORY
|
11. Board Resolution (Body
corporate subscriber)
12. Certificate of
Incorporation & proof of registered office
(Foreign Body
corporate subscriber)
13. Entrenched Articles
14. Proof of
Nationality(In case of foreign national)
15. Declaration by
foreigner if he does not possess PAN
(as per MCA circular
16/2014)
16. NOC in case there is
change in the promoters
17. Principal approval
taken from RBI for carrying NBFC activity
|
AD-HOC
|
# Obtains Following Documents/Information From Subscribers: -
S. NO.
|
PROVISION
|
PARTICULARS
|
REMARKS
|
A.
|
Section 7(1)(e)
+
Rule 16
|
ID Proof (PAN + Voter ID/Passport
/Driving License/Aadhar Card)
|
For foreign nationals and NRI only passport will
suffice
|
Address Proof both permanent &
present (Electricity/Telephone/
Mobile Bill/ Bank Statement)
|
The proofs should not be 2 months old
|
||
Proof of
nationality (Applicable only to
foreign nationals)
|
Although all
subscribers can be foreigners but at least 1 director should be resident
(section 149(3))
|
||
Disclosure of Directorship /promotership in other
companies
|
Refer definition of promoter (Sec.
2(69))
|
||
Specimen signature
with photo duly verified by
notary/Banker in INC-10
|
|
||
B.
|
Section 7(1)(c)
+
Rule 15
|
Affidavit in form INC-9
|
|
C.
|
Section 7(1)(e)
+
Rule 16
|
In case subscriber
is a Body Corporate: -
·
Board Resolution for subscribing shares, making
investment & Authorizing a person to
subscribe & Sign MOA
·
For person authorized, documents required in point A to C
shall also be required.
|
·
In case Body Corporate is LLP the resolution should be
approved by all partners.
·
In case of a foreign Body Corporate, copy of registration
& proof of registered address is also required.
·
Authorized person cant become subscriber to MOA &
AOA in individual capacity at the same time
(Proviso to rule13(4))
|
D.
|
Section 7(1)(e)
+
Rule 16
|
Following
information is also required from subscriber: -
·
Place of Birth(District & State)
·
Educational Qualification
·
Occupation
·
Duration of stay at present address, if less than 1 year
then previous address
·
Email ID & phone no.
|
Address, e-mail id
& phone no. should be of subscriber only and not professional.
|
OBTAIN FOLLOWING DOCUMENTS/INFORMATION FROM DIRECTORS:
S. NO.
|
PROVISION
|
PARTICULARS
|
A.
|
Section 7(1)(c)
+
Rule 15
|
Affidavit in form INC-9
|
C.
|
Section 7(1)(g)
+
Rule 17
|
·
Consent to act as Director
in DIR-2 along with ID &
Address proof
·
Interest in other firms & entities (reg. No, name,
amt. & percentage of investment, Designation)
|
D.
|
Form DIR-2
|
Following information is also required from
subscriber: -
·
Email ID & mobile no.
·
Occupation
·
PAN no.
·
No. companies in which acting as director including name
of Companies in which acting as MD/WTD/CEO/CFO/CS/ manager
·
Particulars of membership & CP no., in case member of
professional institute
|
OBTAIN FOLLOWING DOCUMENTS/INFORMATION FOR SITUATION OF REGISTERED
OFFICE:
Situation
of Registered Office:
- The
address of registered office may be intimated by the Promoters at the time of
Incorporation or as per section 12 within maximum 15 days of Incorporation. In
case address of registered office is not decided then address for
correspondence needs to be given. The documents/information required in case
the address of registered office is to be intimated at the time of
Incorporation are: -
S. NO.
|
PARTICULARS
|
A.
|
Complete address
of Police station in whose jurisdiction the registered office is situated
|
B.
|
Utility Bill, not older than 2
months old(electricity/gas/telephone/mobile bill)
|
C.
|
Proof of
registered office address(Conveyance/lease deed/rent agreement along with
rent receipts)
|
D.
|
No objection
certificate in case registered
office is not taken on lease
|
STEP – IV: Fill the Information in Form:
Once all the above
mentioned documents/ information are available. Applicant has to fill the
information in the e-form “Spice” INC-32.
Features of SPICe (inc-32) form:
·
Maximum
details of subscribers are SEVEN (7). In case of more subscribers, physically
signed MOA & AOA shall be attaching in the Form.
·
Maximum
details of directors are TWENTY (20).
·
Maximum
THREE (3) directors are allowed for filing application of allotment of DIN
while incorporating a Company.
·
By
affixation of DSC of the subscriber on the INC-33 (e-moa) date of signing will
be appear automatically by the form.
·
Applying
for PAN / TAN will be compulsory for all fresh incorporation applications filed
in the new version of the SPICe form.
·
In
case of companies incorporated, with effect from the 26th day of January, 2018,
with a nominal capital of less than or equal to rupees ten lakhs or in respect
of companies not having a share capital whose number of members as stated in
the articles of association does not exceed twenty, fee on INC-32 (SPICe) shall
not be applicable
STEP – V: Preparation of MOA
& AOA:
After proper filing of SPICE form applicant has to
download the e-form INC-33 (MOA) and IN-34 (AOA) form the MCA site. After
downloading of form fill all the information in the forms as per requirement of
Table A to J of Schedule I.
After completely filing of the form affix DSC of all
the subscribers and professional on subscriber sheet of the MOA & AOA.
STEP – VI: Fill details of PAN
& TAN:
It is mandatory to mention the details of PAN &
TAN in the Incorporation Form INC-32. Link to find out of Area Code to file PAN
& TAN are given in Help Kit of SPICE Form.
STEP – VII: Submission of
INC-32,33,34 on MCA-:
Once all the 3 forms ready with the applicant, upload
all three documentas Linked form on MCA website and make the payment of the
same.
STEP – VIII: Certificate of
Incorporation-:
After the above forms are
approved, a certificate of incorporation is issued by the Registrar of
Companies in form INC 11 in electronic form and is mailed to the
Company at its registered Email ID.
CAUTION TO BE TAKEN BY
PROFESSIONALS
1.
Obtain
engagement letter from subscriber:
- As
per certification in e-form DIR-12 & INC-22, a professional declares that
he has been engaged for the purpose of certification Therefore it is advisable
to obtain an engagement letter.
2. Verification of original
records pertaining to registered office: - As per
certification in e-form INC-22 / SPICE, a professional declares that he has
verified all the particulars(including attachments) from original records.
3. Ensure all attachments are
clear enough to read: - As per certification in e-form
DIR-12 & INC-22, a professional declares that all attachments are
completely and legibly attached.
4. Ensure registered office
of the company is functioning for the business purposes of the company: - - As per
certification in e-form INC-22, a professional declares that he has personally
visited the registered office.
5. Take
a declaration to the effect that all the original documents have been handed
over after incorporation. Since as per section 7(4) copies all
documents/information as originally filed should be preserved at the registered
office of the company, therefore a professional should take a declaration while
handing over the incorporation documents.
6. MCA Circular 10/2014: - According to this circular ROC/RD
in case of omission of material fact or submission of
false/incomplete/ misleading information can after giving opportunity to
explain refer the matter toe-governance division of MCA, which in turn may
initiate proceedings under section 447 and/or ask the respective professional
institute to take requisite disciplinary action.
OTHER FORMALITIES:
OTHER INCORPORATION
FORMALITIES: After obtaining license under
section 8, the company shall be formed as a normal company and the other
formalities of incorporation shall be complied with.
REGISTRATION UNDER SECTION
80G: If a section 8 company gets itself
registered under section 80G then the person or the organization making a
donation to the NGO will get a deduction of 50% from his/its taxable income.
The Company has to apply in Form10G to the Commissioner of Income Tax for such
registration. Normally this approval is granted for 2-3 years but can be
granted earlier depending upon the situations.
(Author
– CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice
from Delhi and can be contacted at csdiveshgoyal@gmail.com). Disclaimer: The entire
contents of this document have been prepared on the basis of relevant
provisions and as per the information existing at the time of the preparation.
Although care has been taken to ensure the accuracy, completeness and
reliability of the information provided, I assume no responsibility therefore.
Users of this information are expected to refer to the relevant existing
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Great share!
ReplyDeleteI love this bucket list and you know you're right. sand blasting machine manufacturer. We all have the same amount of hours in a day so put them to good use. We all have to start somewhere and your plan is perfect. I understand the way of the attractive to the customer with the products sand blasting machine.
Sand blasting machines like shot blasting machine, sand blasting machine, and grit blasting machines, Wood Working Machinery Dust Extraction unit, Abrasive Blasting Media and various others. Keep it works and share with us your latest information. My time will come but I know I'm on the right path.
They are similar to small communities that you own - check them out if you haven't already. It's all got a lot better than before!t. Value that list of thousands but I'll get there.
Thanks for sharing. Have a nice week ahead.
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Regards,
Ankit Manawat.