Incorporation of Section 8 Companies: “No Requirement for INC 12 Filling”

Companies(Incorporation) Sixth Amendment Rules, 2019 dated 7th June, 2019, With a view to simplify the process for incorporating Section 8 Companies, requirement of prior filing of INC-12 for new section-8 companies is being dispensed.

So the Process of Incorporation of Section 8 Companies is now simple as the process of incorporation of other Companies.

Old Process of Incorporation of Section 8 Companies:-

1.      Reservation of Name through RUN form

2.      Obtain License for Section 8, Through Form INC-12

3.      Filling and Approval of Form Spice

Current Process of Incorporation of Section 8 Companies after Amendments:

1.      Section 8 Companies can be incorporated by either reserving names through Run and filing SPICe thereafter or by directly filing SPICe.

2.      License Number for a section 8 company shall henceforth be allotted at the time of incorporation itself.

What about form already uploaded for approval of License through E-Form INC-12?

In view of the above, all pending INC-12 SRNs for new Companies pending at respective Registrar of Companies would be marked as ‘Rejected’ on 15th August 2019. Such applicants may thereafter directly file SPICe for obtaining License Number and for incorporation of Section 8 Companies.

What about who already obtain the License number but SPICEs form are yet to be uploaded?

Who have already obtained License Numbers and are yet to file SPICe form for incorporating Sec 8 companies may do so at their convenience but may please note that the forms shall be processed only after a certain time lag to allow for work flow changes to take effect.

MCA Charge filing fees new structure wef 1 August 2019

1. Within 30 days - Normal Fees
2. Delay Up to 30 days  - 6 times normal fees
3. Delay More than 30 days and up to 90 days - 6 times normal fees plus ad valorem fees 0.05% of amt secured by charge subject to maximum of Rs.5 lacs.

Note: 120 days and above charge will not be taken on record by MCA

For example  Considering loan / charge amt of Rs.1 Cr following is ROC fees calculation:
1. Within 30 days - Maximum Fees Rs.600/-
2. Delay Up to 30 days  - Total Rs.4200/- (Rs.600/- + Rs.3600/-)
3. Delay More than 30 days and up to 90 days - Rs.9200/- {Rs.4200/- + Rs.5000/- (i.e. 0.05% of Rs.1 Cr)}

On Rs.100 Cr charge amount - Delay More than 30 days and upto 90 days-  Roc fees Rs.4200/- + advalorem fees Rs.5 Lac=Rs.504200/-