- Qualification for shaping Section 8 Company
- E-petitioning for Section 8 Company
- Reminder of affiliation and articles of affiliation
- Different Points to be thought of while shaping Section 8 Company
- Transformation of Section 8 Company into Company of another class
- Dropping of License
- winding Up section 8 company
- Discipline for Contravention of a section 8 company
The Companies Act 2013 defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, or other similar objectives.
The section 8 is fundamentally the same as section 25 of the old organization act and empowers the public authority to enlist any relationship with altruistic targets, for example, to advance games, trade, craftsmanship and culture, instruction, research and so on as a restricted organization, without adding the words ‘Pvt. Ltd.’ The pay of the Company should be utilized to advance the altruistic item as it were. The focal government gives a permit to every such organization and furthermore advises them about certain limitations and conditions. On the off chance that they neglect to satisfy these, the focal government may likewise arrange them to end up the organization. In the event that deceitful targets of the Company are demonstrated, legitimate move will be made against all officials of the Company.
Viable Date of Section 8 of Companies Act, 2013 01-04-2014
Rule No. of the Companies (Incorporation) Rules, 2014 19, 20, 21, 22 and 23
Structure No. INC-12, INC-13, INC-15, INC-16, INC-17, INC-18, INC-19, INC-20
Relating sections of the Companies Act, 1956: 25
Qualification for shaping Section 8 Company
An individual or a relationship of people aiming to be enlisted under Section 8 of the Companies Act, 2013 as a restricted organization –
(a) the article should be magnanimous, to advance expressions, science, business and so on
(b) plans to apply all its benefit in advancing the goals.
(c) Assures the denying of the installment of profits to any of its individuals
E-petitioning for Section 8 Company
An individual or a relationship of people will make an application in Form No. INC-12 alongside the expense as given in the Companies
The Memorandum of relationship of the proposed organization will be in Form No. INC-13
Structure INC-13 will be joined by the accompanying reports
Reminder of affiliation and articles of affiliation
The affirmation by a promoter, a graphed bookkeeper or an organization secretary that the update and articles of affiliation follow every one of the arrangements of section 8;
An inexact revelation of the yearly pay and use of the Company for next three years referencing the kind of revenue and methods of use.
The announcement by every one of the people making the application in Form No. INC-15.
The organization should give a notification inside multi week of sending the application and a duplicate of the application should be shipped off the recorder and this notification will likewise be distributed
In any event once in the vernacular paper of the locale in which the enrolled office of the Company is arranged and furthermore in an English paper flowing in the region.
Different Points to be thought of while shaping Section 8 Company
The organization will have every one of the advantages of a private restricted organization
A firm might be an individual from the Company enlisted under this section.
The organization can’t adjust its reminder and articles of affiliation.
A Company enlisted under this section may change over itself into the organization of some other kind solely after consenting to such conditions as might be endorsed.
Where it is demonstrated as per the general inclination of the Central Government that a restricted Company enrolled under this Act or under any past organization law has been shaped with any of the items determined in statement (a) of sub-section (1) and with the limitations and denials as referenced separately in provisos (b) and (c) of that subsection, it might by permit, permit the Company to be enlisted under this section subject to such conditions as the Central Government considers fit and to change its name by discarding “Restricted”, or by and large, the words “Private Limited” from its name and immediately the Registrar will, on application, in the recommended structure, register such organization under this section and every one of the arrangements of this section will apply to that Company.
Where the permit allowed to a Company enrolled under Section 8 has been renounced, the organization will apply to the Registrar in Form No. INC-20 alongside the expense to change over its status and change of name likewise.
Where a License is disavowed under sub-section (6), the Central Government may, by request in the event that it is fulfilled that it is fundamental in the public interest, direct that the Company is ended up under this Act or amalgamated with another organization enlisted under Section 8.
Transformation of Section 8 Company into Company of another class
- The organization can be changed over into another class by filling an application in structure no. INC-18.
- Exceptional goal is needed to be passed
- A logical assertion should have the subtleties and statements.
- Distribution of a notice in any event one vernacular and English paper circling in the section where the enrolled office is arranged.
- A duplicate of the notification distributed in the paper, will be shipped off different specialists including yet not restricted to Income Tax, the cause Commissioner, Chief Secretary of the State and so forth close them that on the off chance that they can make portrayal in regard of the said application before the Regional Director.
- Affirmation from the Board
- On the off chance that an organization has acquired any uncommon status, advantages and so forth, a no protest declaration will be required.
- The Company ought to have recorded all its budget report and yearly return up to the monetary year going before the date of the application.
- Testament from Chartered Accountant, Company Secretary or Cost Accountant practically speaking as to consistence with all arrangements of the Act and Rules.
- In the event that provincial chief supports r application, he may request that the organization follow through on the first market cost of the property.
Dropping of License
Section 8 company require an award of a permit by the Central Government. All such licenses are revocable too on the accompanying grounds:
the organization contradicts arrangements of Section 8;
terms of the permit are abused;
at the point when its direct is false, or it disregards its own goals and public approach.
The Government can even request the organization to be twisted up or amalgamated with another comparative organization under section conditions. The Government needs to hear the organization prior to passing such requests.
winding Up section 8 company
Section 8 company can twist up or break down themselves either willfully or compelled given by the Central Government. In the event that any resources stay after fulfilment of obligations and liabilities upon such ending up, the National Company Law Tribunal can arrange the exchange of these resources for a comparable organization. It can likewise arrange that they should be sold and the returns of this deal ought to be credited to the Insolvency and Bankruptcy Fund.
Discipline for Contravention of a section 8 company
Any organization that repudiates arrangements of Section 8 is culpable with a fine going from Rs. 10 lakhs to Rs. 1 crore. Further, chiefs and officials of the organization are obligated to discipline with detainment as long as 3 years and a fine between Rs. 25,000 to Rs. 25 lakhs. Such officials can likewise confront arraignment under tough arrangements of Section 447 (managing misrepresentation) in the event that they lead any issues with fake intentions.