Incorporation / Formation of Section 8 Company (Generally known as NGO) in India and related questions about the recent changes in statue.

We often plans to form a NGO (Non Government Organization) for carrying out activities of philanthropic nature, i.e. not for making profit but for charitable purpose. Hence we plan to form a Section 8 Company for the same purpose. 

Following questions are related to formation / incorporation of Section 8 Company and the very recent changes in statue. 

In 2019 there were certain changes made by Ministry of Company affairs in the process of formation / incorporation of Section 8 Company.

Government decided to simplify the process of incorporation of Section 8 Company, accordingly Companies (incorporation) Sixth Ammendment Rules 2019, has been enacted w.e.f. 07 June 2019.

The most important change in this regard is the prior approval and obtaining licence is dispensed with, before formation / incorporation of Section 8 Company. Hence it is now not required to file INC-12 form in the process.

Now the licence will be granted at the time of giving the approval of the company, which means it will be issued along with the certificate of incorporation.

So SPICEe, is the form is now  required to be submitted for the purpose of Incorporation.

In case of formation / incorporation of Section 8 Company Memorandum of AssociationAand Articlesof Association are required to be attached as PDF attachment and not as separate form i.e. INC 33 & INC 34.

Other attachments which are required to be made are as follows:

*Title deed of land / Rent Agreement as the case may be for as a proof of ownership or tenancy right.
*Utility Bill is required to be attached as a proof of office address ( which shall not be older than 2 months)
*In many cases the owner of land is different from the owner of rental accomodation. To avoid any confusion. NOC  of owner of land of the office premises is required to be attached.
* Attachment evidencing, Address and I'd proof all subscribers to be made.
* Attachment of the Address proof and I'd proof of all applicants i.e. who's name will be provided as applicant of the form, the which will be submitted.

*Declarationof the subscribers, i.e. who's name will be appeared in the Memorandum of Companies as the first Directors of the Company. Such declaration is to be given in form DIR 2, MBP 1, INC 9, INC 15.

*Declaration is to be attached by practicing CS / CA / Advocate in INC 14.
* Other attachments are PAN card of all Subscribers.
In addition to the above attachments an Estimated Income & Expenditure of 3 years is required to be attached.

In case a name is opted to be reserved then RUN form may have to be submitted before SPICEe form and ₹ 1,000.00 is required to be paid.

In addition to  the amount as paid at the time of submission of RUN form, a nominal amount of stamp duty is  required to be paid for incorporation of a section 8 company with Authorised capital upto ₹ 10 lakhs.

The SPICEe form is itself contains application for PAN and TAN, so there is no need of making separate application.

It is also  possible to obtain registration of GST, PF, ESI at the time of making incorporation of section 8 company by submission of AGILE form can be submitted along with SPICEe form, such AGILE form is submitted to obtain GST, PF and ESI registration.