License Under Section 8 for New Companies With Charitable Objects etc
(1) A person or an association of persons (hereinafter referred to in this rule as “the proposed company”), desirous of incorporating a company with limited liability under sub-section (1) of section 8 without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, shall make an application in 4,5[SPICe+ (Simplified Proforma for Incorporating company Electronically Plus: INC-32)] along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 to the Registrar for a license under sub-section (1) of section 8.
(2) The memorandum of association of the proposed company shall be in Form No.INC.13.
(3) The application under sub-rule (1) shall be accompanied by the following documents, namely:—
(a) 2[the memorandum] and articles of association of the proposed company;
(b) the declaration in 6[Omitted] by an Advocate, a Chartered Accountant, Cost Accountant or Company Secretary in practice, that 3[the memorandum] and articles of association have been drawn up in conformity with the provisions of section 8 and rules made thereunder and that all the requirements of the Act and the rules made thereunder relating to registration of the company under section 8 and matters incidental or supplemental thereto have been complied with;
(c) 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;
(d) the declaration by each of the persons making the application in 7[Omitted].
Amendment
1. Substituted by the Companies (Incorporation) 6th Amendment Rules, 2019 Amendment Effective from 15th August 2019.
in sub-rule (1),for the word and figures
the following shall be substituted namely,
Form No.INC-32(SPICe).
2. Substituted by the Companies (Incorporation) 6th Amendment Rules, 2019 Amendment Effective from 15th August 2019.
in sub-rule (3), clause (a)
the draft memorandum
the following shall be substituted namely,
the memorandum.
3. Substituted by the Companies (Incorporation) 6th Amendment Rules, 2019 Amendment Effective from 15th August 2019.
in sub-rule (3), clause (b)
the draft memorandum
the following shall be substituted namely,
the memorandum.
4. Substituted by The Companies (Incorporation) Amendment Rules, 2020 Dated 06th February,2020. Amendment Effective from 15th February, 2020.
in rule 19 sub-rule 1, for the words and figures ‘1[Form No INC-32(SPICe)]’ the words and figures ‘SPICe (Simplified Proforma for Incorporating company Electronically Plus: INC-32)’ shall be substituted.
5. Substituted by The Companies (Incorporation) Amendment Rules, 2020. Dated 18.02.2020 Amendement Effective From 23.02.2020
in rule 19 sub-rule 1, for the words and figures ‘1 [Form No INC-32(SPICe)]’ the words and figures ‘SPICe+ (Simplified Proforma for Incorporating company Electronically Plus: INC-32)’ shall be substituted.
6. Omitted by Companies (Incorporation) Amendment Rules, 2023
Original Content
in Form No. INC.14
7. Omitted by Companies (Incorporation) Amendment Rules, 2023
Original Content
in Form No. INC.15
Lets understand the above Rule 19: License for Charitable Companies under Section 8 of companies act 2013:
Rule 19 of The Companies (Incorporation) Rules, 2014 deals with the process of incorporating new companies in India, specifically those with charitable objectives, under Section 8 of the Companies Act.
If you want to create a company in India that has a charitable purpose and doesn’t want to use words like “Limited” or “Private Limited” in its name, you need to follow these rules. This rule explains the process for obtaining a license for such a company.
1. Application Submission:
- To begin, you must fill out a specific application form called “SPICe+ (Simplified Proforma for Incorporating company Electronically Plus: INC-32)” and pay the required fees mentioned in the Companies (Registration Offices and Fees) Rules, 2014. This application should be sent to the Registrar.
2. Memorandum of Association:
- You must prepare a document called the “Memorandum of Association” in Form No.INC.13.
3. Declaration by Professionals:
- You need to obtain a declaration from a practicing Advocate, Chartered Accountant, Cost Accountant, or Company Secretary. This declaration should confirm that your Memorandum and Articles of Association comply with Section 8 and its related rules. It should also verify that you’ve met all the legal requirements for registering your company under Section 8.
4. Financial Projections:
- Provide an estimate of your company’s expected income and expenses for the next three years. Clearly specify where your income will come from and how you plan to use the funds.
5. Individual Declarations:
- Each person involved in making the application must provide their own declaration.
Examples in an Indian Context:
Let’s say a group of individuals in India wants to start a non-profit organization that provides free education to underprivileged children. They don’t want the word “Limited” or “Private Limited” in their organization’s name.
Application Submission: They fill out the SPICe+ application form and pay the required registration fees to the Registrar.
Memorandum of Association: They prepare a document called the “Memorandum of Association” (Form No.INC.13) outlining their organization’s mission, objectives, and structure.
Declaration by Professionals: They approach a practicing Chartered Accountant who certifies that their documents comply with Section 8 and related rules.
Financial Projections: They provide an estimate of their annual income and expenses for the next three years, showing that they plan to fund the education programs through donations and grants.
Individual Declarations: Each founder signs a declaration confirming their commitment to the organization’s charitable goals.
By following these steps, the group can create a non-profit organization under Section 8 without using words like “Limited” or “Private Limited” in its name. This allows them to focus on their charitable work while complying with legal requirements.
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