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 (Lawyer) 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/Highcourt practice watsapp no.9989324294 ) 30 July 2021
Read environment journals.
Simple Things You Can Do to Help Protect the Earth
Ashwitaa 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.