22 Feb Guidelines for Registering a Section 8 (NGO) Organization in Rajasthan
Registration Procedure for Section 8 Organizations
Section 8 organizations, registered under the Companies Act, 2013, operate with the aim of promoting various sectors such as commerce, art, science, sports, education, research, and social welfare without pursuing profits for dividend distribution among its members. Here are the steps to register a Section 8 organization in Rajasthan:
Minimum Director Requirements:
Depending on whether the organization is registered as a Private Limited Company or a Public Limited Company, the minimum number of directors varies. For a Private Limited Company, a minimum of two directors is required, whereas for a Public Limited Company, a minimum of three directors is mandated. However, regardless of the type, the maximum number of directors in a Section 8 company should not exceed twenty. Additionally, if the organization involves foreign entities, at least one resident director is necessary as per Section 149(3) of the Act.
Documents Required for Registration:
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Proof of Address of Members/Subscribers and Directors (Valid Passport/Voter ID/Aadhar Card/Valid Driving License)
- Proof of Members/Subscribers and Directors (Bank Statement/Electricity Bill/Telephone Bill/Mobile Bill not older than 2 months)
- PAN Card of Indian Residents being the Members and Directors
- Passport size photograph
- Details of directors (when the members are other companies/LLPs)
- Registered Office documents:
- If proposed Registered Office is taken on Lease: NOC from Landlord, Lease Agreement, Utility Bill (Electricity Bill/Mobile Bill/Telephone Bill not older than 2 months)
- If the proposed Registered Office is not taken on Lease: NOC from the Owner of Property, Utility Bill, Property Papers (Title Deed)
Registration Procedure:
The Ministry of Corporate Affairs has simplified the registration process for Section 8 organizations by eliminating the requirement of filling form INC 12 during Incorporation. The registration can be done through SPICE+ PART -A for name reservation followed by filling SPICE+ PART -B or directly filling SPICE+ PART -B. The license of the Section 8 company is allotted at the time of incorporation itself. The registration steps include:
- Application for Name Reservation
- Filling of Information in Part B of SPICe+
- Filling of AGILE-PRO
- Affixing the Digital Signatures (DSCs)
- Uploading of Forms on the Ministry of Corporate Affairs
Application Procedure for DIN Allotment
The process for obtaining a DIN is straightforward and involves the following steps:
- Visit the Ministry of Corporate Affairs (MCA) website.
- Navigate to the E-Filing section and download Form DIR-3.
- Fill out the form and attach necessary documents.
- Verify the form and documents using a Digital Signature Certificate (DSC).
- Obtain digital verification from the director or relevant authority within the company.
- Submit the form along with the requisite fees as per official instructions.
Compliances:
- Board Meetings: Section 8 companies are required to hold board meetings at least two times a year with a minimum quorum of 80% or 25% of the total strength, whichever is less, subject to a minimum of two members.
- Annual General Meeting: The notice period for AGM is reduced to 14 days, and the venue can be decided by the Board of Directors. The requirement of sending documents before the AGM is waived off for Section 8 companies.
Penalties:
Failure to comply with the regulations of Section 8 registration can lead to penalties ranging from fines of 10 lakh Rupees to 10 crore Rupees for the company and fines of 25 thousand Rupees to 25 lakh Rupees or imprisonment for the directors and officers found in default. If fraudulent conduct is proven, officers of the company can be held liable under section 447.
No Comments