My father wishes to form a company for the purpose of developing new and innovative techniques to protect our environment. What kind of a company should he form? What shall be the process for the same?
RUCHIKA SHARMA 29 July 2021
My father wishes to form a company for the purpose of developing new and innovative techniques to protect our environment. What kind of a company should he form? What shall be the process for the same?
Dr J C Vashista (Advocate) 30 July 2021
Nothing can be presumed to form an opinion and oblige.
He (your father) has to consult and engage a local prudent lawyer for appreciation of facts, professional advise and necessary action.
G.L.N. Prasad (Retired employee.) 30 July 2021
Entrust the incorporation to a professional and he can focus more on his main idea. If he deals himself with the system, he will be disappointed for taking up such public interest cause, where Govt with all its machinery fails to bring improvement.
Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 30 July 2021
Read environment journals.
Simple Things You Can Do to Help Protect the Earth
P. Venu (Advocate) 31 July 2021
The query suggests no legal elements or legal issues.
Anon (Associate ) 30 August 2021
Ashwitaa Shetty (.) 08 October 2021
As per your query your father should form Section 8 Company.
A section 8 Company as per Companies Act, 2013 is formed for social welfare, protection of environment, sports, research, science etc. and your company should utilize profits if any earned through it for promoting these objectives. Please note that
a. The company cannot pay any dividend to its members.
b. Company must strictly adhere to rules specified by Government barring which may lead to winding up of your company.
Following are the steps involved in Incorporation of Section 8 Company
1. Check availability of name in the RUN facility. The name shall end with the words Trust, Foundation, Forum, Association, Council etc. Maximum 2 names at a time are allowed along with 1 resubmission. Fees payable shall be 1000 rupees for using the facility.
2.Get Digital signatures of first subscribers and directors
3.Prepare MOA (Memorandum of Association) in form INC-13. MOA contains object for which the company was formed.
4. A declaration in form INC -14 that draft MOA and AOA are in conformity with section 8 and rules of Companies Act 2013. This declaration can be given by an Advocate, Practicing CA, or CS
5. Declaration by each applicant in INC -15.
6. Declaration in INC -9 by first subscribers and directors.
7. Also you are required to give an estimate about future income and expenditure and sources of income and object of expenditure for the next 3 years.
Regards,
Ashwitaa Shetty
Suveera Patil 02 June 2022
As per the query raised the he (your father) should choose Section 8 Company formation.
Here is deatiled process of Section 8 Company Registration:
STEP 1: Running Approvals:
The Reserve Unique Name (RUN) form is used to reserve a name for a new company or change its existing name. Section 8 companies must complete this form before they may incorporate.
Companies under section 8 are normally referred to as Foundations, Societies, Councils, Clubs, Charities, Institutes, Academies, Organizations, Federations, Chambers of Commerce, Developments, Associations, etc.
For a period of 20 days, the name will be valid
STEP 2: Get your RD1 license:
Incorporation requires this step to be completed.
When applying for the RD 1 License, the name approval must be current.
RD1 licenses are granted under section 8 of companies act because they have a specific objective which is for the improvement of arts, science, commerce, environment, etc., and the profits earned will also be used to accomplish these objectives. All documents such as the Memorandum of Agreement, the Agreement of Affidavit, and financial statements are submitted at this stage.
A license so approved shall be valid for 30 days.
STEP 3: The spice form :
At the time the SPICe form is filed, both the name and the license must be valid.
During this stage, documents relating to the registered office, such as rental agreements and utility bills, along with the RD-1 license and the name approval certificate, are filed.
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