Introduction to Section 8
Section 8 is incredibly almost like section twenty-five of the previous company act and allows the govt to register any association with charitable objectives like to push sports, commerce, art and culture, education, analysis, etc as an Ld., while not adding the words ‘Pvt. Ltd.’ The financial gain of the corporate should be wont to promote the charitable object solely. The central government provides a license to any or all such firms and conjointly informs them concerning some restrictions and conditions. just in case they fail to satisfy these, the central government can also get them organized to land up the corporate. just in case deceitful objectives of the corporate are tried, the proceeding is taken against all officers of the corporate.
Effective Date of Section eight of firms Act, 2013 01-04-2014
Rule No. of the businesses (Incorporation) Rules, 2014 19, 20, 21, 22 and 23
Form No. INC-12, INC-13, INC-15, INC-16, INC-17, INC-18, INC-19, INC-20
Corresponding sections of the businesses Act, 1956: 25
Eligibility for forming Section 8 Company
A person or associate degree association of persons aspiring to be registered underneath Section eight of the companies Act 2013 as an Ltd. –
(a) the item should be charitable, to push arts, science, commerce, etc.
(b) intends to use all its profit in promoting the objectives.
(c) Assures the prohibiting of the payment of dividends to any of its members
E-filing for Section 8 Company
A person or associate degree association of persons shall create an associate degree application in type No. INC-12 in conjunction with the fee as provided within the firms
The note of association of the planned company shall be in type No. INC-13
Form INC-13 shall be amid the subsequent documents
The Memorandum of association of the proposed company shall be in Form No. INC-13
The confirmation by associate degree advocate, a charted bourgeois or an organization secretary that the note and articles of association follow all the provisions of section 8;
An approximate declaration of the annual financial gain and expenditure of the corporate for the next 3 years mentioning the supply of financial gain and modes of expenditure.
The declaration by every one of the persons creating the application in type No. INC-15.
The company should issue a notice inside one week of causing the applying and a duplicate of the applying should be sent to the registrar and this notice shall even be published-
At least once within the vernacular newspaper of the district within which the registered workplace of the corporate is settled associate degreed conjointly in an English newspaper current within the district.
Other Points to be considered while forming Section 8 Company:-
The company can have all the advantages of a personal Ld.
A firm is also a member of the corporate registered underneath this section.
The company cannot alter its note and articles of association.
A Company registered underneath this section might convert itself into the corporate of the other kind solely once compliant with such conditions as is also prescribed.
Where it’s tried to the satisfaction of the Central Government that an Ld. registered underneath this Act or underneath any previous company law has been fashioned with any of the objects laid out in clause (a) of sub-section (1) and with the restrictions and prohibitions as mentioned severally in clauses (b) and (c) of that subdivision, it’s going to by license, enable the corporate to be registered underneath this section subject to such conditions because the Central Government deems work and to vary its name by omitting the word “Limited”, or because the case is also, the words “Private Limited” from its name and therewith the Registrar shall, on the application, within the prescribed type, register such company underneath this section and every one the provisions of this section shall apply to it Company.
Where the license granted to an organization registered underneath Section eight has been revoked, the corporate shall apply to the Registrar in type No. INC-20 in conjunction with the fee to convert its standing and alter of name consequently.
Where a License is revoked underneath sub-section (6), the Central Government might, by order if it’s happy that it’s essential within the public interest, direct that the corporate is tense underneath this Act or amalgamated with another company registered underneath Section eight.
Conversion of Section 8 Company into the Company of another class:-
The company is reborn into associate degree another category by filing an application in type no. INC-18.
A special resolution is needed to be passed. An informative statement should have a small print and declarations.
Publication of an advert in a minimum of one vernacular and English newspaper current within the district wherever the registered workplace is settled.
A copy of the notice revealed within the newspaper, shall be sent to varied authorities as well as however not restricted to revenue enhancement, the charity Commissioner, Chief Secretary of the State, etc. intimate them that if they’ll create an illustration in respect of the aforesaid application before the Regional Director.
Declaration from the Board
If an organization has obtained any special standing, privileges, etc., a no-objection certificate shall be needed.
The Company ought to have filed all its budget and annual come back up to the year preceding the date of the applying.
Certificate from the comptroller, Company Secretary, or controller in applying on compliance with all provisions of the Act and Rules.
If the regional director approves r application, he might raise the corporate to pay the initial value of the property.