Section 8 Company Incorporation Process through Spice+

ALL about Sec 8 Company Incorporation Process

Walk-through and Do’s and Don’ts- Section 8 Company Incorporation Process through Spice+

In India, the organizations which have an objective of promoting the fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives can be registered as a Section 8 company( Apart from being registered as a Society or Trust)

Without discussing the advantages or disadvantages of having been registered as a company, (which you all must be aware of beforehand while reading this article).

Lets jump on the process of registration of Sec 8 company in Spice+ Regime

Key Highlights of Major changes as compared to Spice form:

1. Offline forms are replaced with the Web Form

2. step process as against the old process where license was required to be applied separately.

3. License and Incorporation happens in one go, no need to file INC 12 separately now.

Detailed process of Incorporation:

Step 1:

Before initiating the application process, it is wise to collect all the documents required in the process of incorporation as it takes ample amount of time.

List of documents required:

1. For application of DSC, self attested copy of:

• Photo ID – PAN/Voter ID/Driving License
• Address Proof- Voter ID, Bank Statement, Utility Bill.(Bank Statement and Utility bills should not be older than last 2 months)
• Photo’s of the applicant (even Soft copy will serve the purpose)

2. For Name Availability

• Proposed name ( use of word Foundation, Association etc. is mandatory for Sec8 company.)
• Main Objects of the company.

3. For SPICE+ form– Application for Incorporation Certificate.

• Memorandum of Association
• Articles of Association
• PAN of the subscribers to the Memorandum(1^st Directors of the company)
• Proof of ID and Address of the subscribers to the Memorandum. (Refer the help kit for eligible proofs)
• Notarized Rent Agreement of the Registered Office.
• NOC from the owner to use the premises
• Utility bill of the premises, not older than last 2 months
• Declaration under form INC 15, from all the directors
• Declaration under Form INC 14 by the Chartered Accountant
• Estimated Income and Expenditure for the next 3 years in the Prescribed Format.

4. For AgilePro (Formats Attached)

• Name of the Bank, where company is willing to open the Bank Account.
• Specimen Signature for EPFO
• NOC for opening a bank account
• Declaration of Authorised signatory for GSTN

Step 2:

1. Check the NAME availability by RUN utility,

2. Login to MCA website and go to:

MCA services>RUN (You cannot access the RUN without Login)

3. Fill in the form online, attach the object clause and Submit.(it is advisable to attach the detailed object clause in the attachment option)

Most Important: The validity of the approved name is for 20 days, so once the Name is approved, SPICE+ needs to be filled within 20 days from the date of name Approval.

Step 3:

Filling of Web Form Spice +

Once the name is approved, the Spice forms will be enables for further process.As per the recent amendments in incorporation procedures, pdf forms are replaced with the Web Forms, which are filled online and downloaded only for the purpose of affixing DSC.

Procedure to fill the Web Form:

1. Login to MCA website

2. Go to MCA services> Spice +

3. Select Existing Application

4. Fill in the complete form and keep saving the form on continuous basis.(As it is a web form, the session gets expired in every 15 mins)

5. Attach all the documents in the Attachments section, each attachment should be attested by the directors and MUST have Date and Place mentioned. (There are chances of Rejection in the absence of the above details).

6. Once the form is complete with all the attachments, prescrutinise the form and Submit.

7. Along with Spice , also fill the INC9 and Agile Form.( Agile Form is again a web form, while INC9, is to be filled offline).

8. After Submission, the download option is enabled, download the forms for verification and affixing DSC.

9. Submit all the 3 Forms as LINKED Forms at MCA website, with the required fees.

10. Once the SPICE and AGILE is approved, License No. and Incorporation Certificate is granted which will have Date of Incorporation, Company Identification No. (CIN), PAN and TAN of the company.

Congratulation! You are good to go for the Noble work.

Points to remember to avoid resubmission:

1. If any wrong information is given, it will Pop up while filling/submitting the form itself, so the chances of resubmission is mainly on the part of attachments.

2. Check the supporting documents carefully before attaching.

3. Some common reasons of Rejection:

• Utility bill / Bank statement is older than 2 months.

Suggestion:In case of resubmission, attach the latest copy of utility bill at the time of resubmission. For eg. You are applying for Incorporation in the last week of July, and you have attached the utility bill of May, and if for any reasons the application comes into resubmission in August, then you also need to change the utility bill considering the 2 months from the date of resubmission.

• Address Proof is not as per the address mentioned in the application.

Suggestion: If the current and permanent address are different , then make sure that the proof of address is on the current address.

• Provide 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 as per Rule 19(3)(c) of Companies (Incorporation).

Suggestion: For Sec 8 Company this is one of the mandatory requirements which may get missed out.There is no separate line item mentioned in the attachment section of Spice + form for attaching the Income and Expenditure statement, so attach it in others. Secondly, the Estimate should be as per the Rule 19(3)(c) of Companies (Incorporation). Refer Annexure below.

• For Sec 8 company the Memorandum and Articles are required to be attached separately unlike other incorporation where it is to be filled as a web form, so check the documents carefully before submitting. Even the absence of Date and Place at the bottom of the document can call for rejection.
• Most importantly, it is not necessary that the reason mentioned during 1^st rejection are complete, there is a possibility of multiple rejection for different reasons, so check the form minutely before resubmitting and if you feel that any information is incomplete or incorrect, change that even if it is not a reason for rejection as it may call for the rejection later.
• PAN of the subscribers is Mandatory,(if not having DIN),to be attached in the others section.

It is just the 20 days process if done within the timeline, if delayed it may take unlimited time and cost to get the process complete

Annexures/Formats

1. Income and Expenditure statement

COMPANY NAME

PROJECTED INCOME AND EXPENDITURE ACCOUNT

(Promoter and Director)

(Promoter and Director)

2. NOC for Bank Account Opening

Date : – ………

To

The Registrar of Companies

………

Subject: No Objection Letter opening of Bank Account.

Ref:

I, …Name of Subscriber…………. ,S/o ………….., permanent residing at …………………, do solemnly declare that Opening of Bank Account by me on Behalf of the Company. I do hereby confirm that I have no objection for opening of Bank Account in……Name of the Bank……… of the Company proposed to be incorporated under the name and style of …Name of the Company……… which in also approved by All Directors.

Thanking You

Yours faithfully Name:

Authorised Signatory

Director

Director

3. NOC for EPF Account

Date: – ……….

To,

The Registrar of Companies

………….

Subject: No Objection Letter for EPFO.

1. I, …..Name of the Subscriber… ,S/o ………., permanent residing at ……….. do solemnly declare that Registration of EPFO by me on Behalf of the Company. I do hereby confirm that I have no objection for Taking Registration of EPFO of the Company proposed to be incorporated under the name and style of ……Name of the Company….. which in also approved by All Directors.

“

Thanking You

Yours faithfully Name:

Authorised Signatory

Director

Director