Introduction to Strike Off of Section 8 Company

A Section 8 Company, registered under the Companies Act, 2013, is formed for charitable or non-profit objectives. However, if such a company becomes inactive, non-operational, or no longer able to achieve its objectives, it may opt for strike off (closure) as per law.

The strike off process is governed by the Ministry of Corporate Affairs (MCA) and must be completed carefully to avoid penalties or future legal issues.

This Saving Mantra guide explains the step-by-step process for strike off of a Section 8 Company in India, including eligibility, documentation, procedure, and post-closure compliance.

---

What Is Strike Off of Section 8 Company?

Strike off refers to:

• Removal of the company’s name from the Register of Companies (ROC)
• Legal closure of the Section 8 Company
• End of statutory compliance obligations after approval

Strike off is applicable only when the company has no assets, no liabilities, and no ongoing operations.

---

When Can a Section 8 Company Apply for Strike Off?

A Section 8 Company can apply for strike off if:

• It has not commenced operations, or
• It has stopped operations for a prolonged period
• There are no pending litigations
• All statutory compliances are completed
• No assets or liabilities exist

---

Eligibility Conditions for Strike Off

Before applying, the company must ensure:

• No pending ROC filings
• No outstanding loans or creditors
• No ongoing legal proceedings
• Proper closure of bank accounts
• Approval from members and directors

---

Step-by-Step Process for Strike Off of Section 8 Company in India

Step 1: Conduct Board Meeting

• Convene a Board Meeting
• Pass resolution approving strike off
• Authorize director for filing application

---

Step 2: Obtain Member Approval

• Conduct General Meeting (if required)
• Pass special resolution for strike off
• Record minutes and approvals

---

Step 3: Settle Liabilities & Close Accounts

• Clear all statutory dues
• Settle creditors, if any
• Close bank accounts
• Prepare statement of accounts

---

Step 4: Prepare Required Documents

Documents required include:

• Board and special resolutions
• Affidavit and indemnity bond by directors
• Statement of accounts certified by CA
• PAN of company
• MOA & AOA
• Copy of Section 8 license
• Latest financial statements

---

Step 5: File Application with ROC

• File Form STK-2 on MCA portal
• Attach all supporting documents
• Pay prescribed government fees

---

Step 6: ROC Verification & Public Notice

• ROC verifies application
• Public notice issued (if required)
• Objections invited within prescribed period

---

Step 7: Strike Off Order

If no objections:

• ROC issues strike off order
• Company name removed from ROC register
• Section 8 Company stands legally dissolved

---

Time Required for Strike Off

• Average timeline: 3 to 6 months
• Depends on document accuracy and ROC scrutiny

---

Post Strike Off Compliance

After strike off:

• Preserve records for future reference
• Respond to any post-closure notices (if any)
• Directors remain liable for past actions

---

Common Mistakes to Avoid

• Pending annual filings
• Outstanding liabilities or bank balances
• Incorrect financial statements
• Missing approvals or affidavits
• Filing without professional review

---

Difference Between Strike Off & Winding Up

Particulars	Strike Off	Winding Up
Complexity	Simple	Complex
Cost	Low	High
Time	Shorter	Longer
Court Involvement	No	Yes

Strike off is preferred when the company is inactive and compliant.

---

How Saving Mantra Helps

Saving Mantra provides end-to-end Section 8 Company strike off services, including:

• Eligibility and compliance review
• Board & member resolutions
• Preparation of STK-2 documents
• MCA filing & follow-ups
• Post-closure advisory support

---

Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. Procedures and requirements under the Companies Act and MCA rules are subject to change. Readers are advised to consult qualified professionals before initiating strike off. Saving Mantra shall not be responsible for decisions taken based on this content.

Saving Mantra Blog: Step-by-Step Process for Foreign Portfolio Investment (FPI) in India

Foreign Portfolio Investment (FPI) allows foreign investors, including NRIs, to invest in India’s equity, debt, and derivatives markets. FPIs bring capital inflows, improve market liquidity, and enable global investors to diversify portfolios.

This Saving Mantra guide explains the step-by-step process for investing as an FPI in India, including regulatory compliance, documentation, registration, and reporting.

---

✔ Step 1: Understand FPI and Eligible Investors

FPI includes investment in:

• Indian stocks/equities
• Corporate and government bonds
• Mutual funds
• Derivatives and ETFs

Eligible Foreign Investors (Categories):

• Category I: Government and regulated entities (sovereign funds, pension funds)
• Category II: Broad-based funds, insurance companies, banks
• Category III: Private investment vehicles, hedge funds, corporate bodies

---

✔ Step 2: Appoint an Indian Custodian

An FPI must appoint a SEBI-registered custodian to:

• Hold securities in demat form
• Monitor investments
• Submit regulatory reports

Popular custodians include: HSBC, Standard Chartered, Citi, ICICI Bank.

---

✔ Step 3: Fulfill KYC and Documentation Requirements

KYC is mandatory for FPI registration with SEBI. Required documents:

• Certificate of Incorporation/Registration
• Memorandum & Articles of Association
• Audited financial statements (last 3 years)
• Board resolution authorizing investment
• Proof of identity and address of authorized signatories
• Foreign tax identification number

All documents must be notarized or apostilled, if applicable.

---

✔ Step 4: SEBI Registration as FPI

• Submit Form A to SEBI via a SEBI-registered Designated Depository Participant (DDP)
• Submit KYC documents
• Pay registration fees (approx. USD 10,000 – 25,000 depending on category)
• SEBI issues FPI Registration Certificate (FPI-RC)

---

✔ Step 5: Obtain PAN & Demat Account

• PAN (Permanent Account Number) required for all investments
• Open a demat account with the custodian for securities holding
• Open a bank account (FPI bank account) for remittance and settlements

---

✔ Step 6: Register with Depository (NSDL/CDSL)

FPIs must register with National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) to hold securities in dematerialized form.

---

✔ Step 7: Fund Transfer & FEMA Compliance

• Remit funds from foreign country via AD Category-I Bank
• Comply with FEMA regulations for repatriation
• Bank issues Foreign Inward Remittance Certificate (FIRC)
• Funds are credited to FPI bank account

---

✔ Step 8: Start Investing in Indian Markets

FPIs can now invest in:

• Equity shares listed on NSE/BSE
• Corporate bonds and government securities
• Mutual funds and ETFs
• Derivatives trading (if eligible and approved)

All trades must follow SEBI limits and investment caps per sector.

---

✔ Step 9: Reporting and Compliance

FPIs must comply with:

• Monthly and quarterly reporting to SEBI and custodian
• Transaction reporting (buy/sell)
• Annual financial reporting
• Tax deduction at source (TDS) under Indian Income Tax Act
• Adherence to Investment limits per sector

Non-compliance can lead to penalties or suspension.

---

✔ Step 10: Repatriation of Profits

• FPIs can repatriate profits, dividends, and sale proceeds freely via AD banks
• Must maintain records for tax and FEMA compliance

---

Conclusion

Investing in India as an FPI provides foreign investors access to one of the fastest-growing emerging markets. With proper SEBI registration, custodian support, and compliance with FEMA and tax rules, FPIs can invest safely in equities, bonds, and derivatives.

---

Disclaimer

This blog is for informational purposes only and does not constitute legal, tax, or investment advice. Regulatory and tax rules may change. Investors should consult qualified professionals before making FPI investments in India.

Saving Mantra Blog: Step-by-Step Process for LLP for NRI in India

A Limited Liability Partnership (LLP) is a hybrid business structure combining the flexibility of a partnership with the limited liability of a company. For NRIs, an LLP provides a simple, tax-efficient vehicle to invest and operate in India while minimizing personal risk.

This guide explains the complete step-by-step process, including eligibility, documents, registration, and compliance for NRIs forming an LLP in India.

---

✔ Step 1: Check NRI Eligibility

NRIs or foreign citizens can be partners in an LLP in India if:

• At least one partner is a resident of India
• The LLP operates in sectors permitted under FEMA/FDI regulations
• Foreign investment complies with RBI/FEMA norms

---

✔ Step 2: Obtain Digital Signature Certificate (DSC)

All designated partners must have a Class 3 Digital Signature Certificate (DSC) for filing forms with MCA.

Required Documents for DSC:

• Passport (for NRI/foreign partner)
• PAN (if available)
• Address proof (foreign passport + overseas address)
• Recent passport-size photo

---

✔ Step 3: Apply for Director Identification Number (DIN)

NRIs as designated partners must obtain a DPIN/DIN through MCA SPICe+ portal.

• Fill DIR-3 form online
• Upload DSC
• Submit KYC documents

---

✔ Step 4: Name Reservation of LLP

Choose a unique LLP name and submit Form RUN-LLP (Reserve Unique Name) to MCA:

• Name must be distinct
• Avoid restricted words like “National”, “Government”, etc.
• Approval is usually granted within 2–3 working days

---

✔ Step 5: Prepare LLP Agreement

The LLP agreement defines:

• Profit sharing ratio
• Rights and duties of partners
• Operational and management procedures

Key points for NRIs:

• Specify capital contribution in INR
• Include repatriation clauses if applicable
• Agreement must be executed within 30 days of LLP incorporation

---

✔ Step 6: File Incorporation Form with MCA (Form FiLLiP)

Submit Form FiLLiP (Form for Incorporation of LLP) online including:

• Name of LLP
• Partners’ details and DIN
• Registered office address in India
• Subscribers’ sheet
• Consent of partners

Documents to attach:

• Passport & address proof of NRI partner(s)
• Registered office proof
• DSC of designated partners
• PAN (if NRI already has)

---

✔ Step 7: Receive Certificate of Incorporation (COI)

Once verified, MCA issues Certificate of Incorporation containing:

• LLP Identification Number (LLPIN)
• Date of incorporation
• Details of partners

---

✔ Step 8: Execute LLP Agreement and File Form 3

Within 30 days of incorporation, file Form 3 to register the LLP Agreement with MCA.

• Attach the signed LLP Agreement
• DSC of all designated partners required
• Stamp duty paid as per state laws

---

✔ Step 9: Apply for PAN & TAN

After LLP registration:

• PAN – Mandatory for tax purposes
• TAN – Required if LLP deducts TDS
• Apply online via NSDL portal or MCA assistance

---

✔ Step 10: Open a Bank Account in India

• Open a current account in the LLP name
• Capital contribution from NRI partners can be remitted via AD Category-I bank
• Keep account compliant with FEMA regulations

---

✔ Step 11: Post-Incorporation Compliance

NRIs and LLPs must adhere to:

• Filing Form 8 (Annual Return) – within 60 days from financial year-end
• Filing Form 11 (Statement of Account & Solvency) – within 60 days
• Statutory audit if turnover > ₹40 lakhs or contribution > ₹25 lakhs
• Maintain books of accounts and statutory registers
• GST registration if applicable

---

✔ Step 12: Tax Compliance for NRI LLP Partners

• LLP is taxed at 30% corporate tax rate plus surcharge
• NRIs must declare share of profits in India if they are tax residents
• TDS on profit distribution may apply

---

Conclusion

Registering an LLP in India is one of the most flexible options for NRIs to establish a business presence with minimal liability. Following the MCA process, obtaining DSC/DIN, and adhering to FEMA/FI norms ensures smooth incorporation and compliance.

---

Disclaimer

This article is for educational purposes only and does not constitute legal or tax advice. Regulatory requirements, FEMA rules, and MCA norms may change. NRIs should consult professionals before incorporation.

Introduction to 12AB Registration

12AB Registration is mandatory for NGOs, charitable trusts, societies, and Section 8 companies to claim income tax exemption on surplus income under Sections 11 and 12 of the Income Tax Act, 1961.

The earlier 12AA registration system has been replaced with 12AB, introducing time-bound validity and periodic renewal to ensure transparency and accountability.

This Saving Mantra guide explains the step-by-step process for 12AB registration in India, covering eligibility, documentation, filing process, timelines, and post-registration compliance.

---

What Is 12AB Registration?

12AB registration:

• Grants income tax exemption to eligible NGOs
• Is issued by the Income Tax Department
• Has limited validity (generally 5 years)
• Requires periodic renewal and compliance

Without 12AB registration, an NGO’s income becomes taxable.

---

Who Should Apply for 12AB Registration?

12AB registration is required for:

• Charitable Trusts
• Registered Societies
• Section 8 Companies
• NGOs seeking 80G approval
• NGOs applying for CSR or government grants

---

Benefits of 12AB Registration

• Exemption of income used for charitable purposes
• Eligibility to apply for 80G registration
• Increased donor and CSR credibility
• Legal recognition as a tax-exempt entity
• Long-term compliance stability

---

Types of 12AB Registration

1. Provisional 12AB Registration

• For newly formed NGOs
• Valid for 3 years
• No activity proof required initially

2. Regular 12AB Registration

• For NGOs with existing activities
• Valid for 5 years
• Requires activity and financial records

---

Eligibility Criteria for 12AB Registration

An NGO must:

• Be legally registered as Trust, Society, or Section 8 Company
• Have charitable objects only
• Not distribute profits or income
• Maintain proper books of accounts
• Use income strictly for charitable purposes

---

Step-by-Step Process for 12AB Registration in India

Step 1: Ensure NGO Legal Registration

The NGO must be registered under:

• Indian Trusts Act
• Societies Registration Act
• Companies Act, 2013 (Section 8)

---

Step 2: Prepare Required Documents

Commonly required documents include:

• NGO registration certificate
• Trust deed / MOA / Bye-laws
• PAN of NGO
• Details of trustees/directors
• Address proof of registered office
• Activity report (if applicable)
• Audited financial statements (if available)

---

Step 3: Choose Applicable Form

• Form 10A – For provisional registration or first-time applicants
• Form 10AB – For regular registration or renewal

---

Step 4: File Online Application

• Login to Income Tax e-filing portal
• Fill Form 10A or 10AB
• Upload supporting documents
• Submit application using DSC or EVC

---

Step 5: Verification & Inquiry

The Income Tax Department may:

• Request additional documents
• Seek clarification on activities
• Examine genuineness of objectives

Prompt and accurate replies are essential.

---

Step 6: Grant of 12AB Certificate

Once satisfied:

• 12AB registration order is issued
• Validity period mentioned clearly
• NGO becomes eligible for tax exemption

---

Time Required for 12AB Registration

• Provisional registration: 15–30 days
• Regular registration: 1–3 months

Timelines may vary based on scrutiny.

---

Post-12AB Registration Compliance

After obtaining 12AB registration, NGOs must:

• File income tax returns on time
• Maintain books of accounts and audit reports
• Intimate changes in objects or management
• Apply for renewal before expiry

Non-compliance may lead to cancellation of 12AB registration.

---

Common Reasons for 12AB Rejection

• Non-charitable or vague objectives
• Incomplete documentation
• No genuine activities
• Financial inconsistencies
• Delay in filing replies or clarifications

---

How Saving Mantra Helps NGOs

Saving Mantra provides end-to-end 12AB registration services, including:

• Eligibility assessment
• Documentation and drafting support
• Form 10A / 10AB filing
• Handling income tax notices
• Ongoing NGO compliance management

---

Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. Income tax provisions and procedures are subject to change. Readers are advised to consult qualified professionals before applying for 12AB registration. Saving Mantra shall not be responsible for decisions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Branch Office for NRI in India

For Non-Resident Indians (NRIs) and foreign companies wishing to conduct business activities in India, establishing a Branch Office is an effective route. Unlike a Liaison Office, a Branch Office can earn income from permitted activities in India. This guide explains the entire step-by-step process for setting up a Branch Office in India for NRIs.

---

✔ What is a Branch Office in India?

A Branch Office is an extension of a foreign company in India that allows specific revenue-generating activities while retaining the status of a foreign entity.

Permitted Activities

A Branch Office may engage in:

• Export/import of goods
• Professional consultancy services
• IT/software services
• Research work in business area
• Technical support services
• Representing the parent company in India
• Acting as buying/selling agent (permitted cases)
• Rendering services in project execution

Restricted Activities

A Branch Office cannot:

• Engage in retail trading
• Engage in manufacturing (except SEZ)
• Carry out real estate business
• Accept deposits

Manufacturing can be done via Special Economic Zones (SEZ) only.

---

✔ Step 1: Check Eligibility Requirements

Before applying, ensure the foreign company meets:

• Profitability Track Record: At least 5 years
• Net Worth: Minimum USD 100,000 (certified by CPA/CA)

NRIs acting via foreign companies can also apply under these norms.

---

✔ Step 2: Determine Approval Route

A Branch Office requires approval from the Reserve Bank of India (RBI) through one of the following routes:

• Automatic Route: For low-risk sectors
• Government + RBI Route: For sensitive sectors or if parent company is from country of concern

Approvals are processed through an Authorized Dealer Category-I Bank (AD Bank).

---

✔ Step 3: Arrange Required Documentation

All foreign-issued documents must be notarized/apostilled/consularized.

Required Documents:

• Certificate of Incorporation/Registration
• Memorandum & Articles of Association
• Audited financial statements (last 5 years)
• Net worth certificate from CPA/CA
• Board Resolution authorizing Branch Office setup
• Proposed Indian office address proof
• KYC documents of parent company
• Details of business operations and objectives
• Banker’s report from parent company

---

✔ Step 4: File Application Using FNC Form

The applicant must submit Form FNC to the Authorized Dealer Bank, which reviews and forwards the application to RBI.

---

✔ Step 5: Obtain RBI Approval

If approved, RBI issues an Approval Letter specifying:

• Validity period
• Allowed activities
• Operational conditions

Only after approval can the Branch Office legally start operations.

---

✔ Step 6: Open Bank Account in India

The Branch Office must open a current account, through which:

• Business receipts can be credited
• Business expenses can be paid

Unlike a Liaison Office, a Branch Office can generate revenue in India.

---

✔ Step 7: Register with MCA as Foreign Company

Within 30 days of establishment, registration with Ministry of Corporate Affairs (MCA) is mandatory through:

• Form FC-1
• Attach RBI approval and corporate documents

---

✔ Step 8: Apply for PAN & TAN

Every Branch Office must apply for:

• PAN (Permanent Account Number) – tax registration
• TAN (Tax Deduction Number) – for withholding tax on payments

---

✔ Step 9: GST & Other Local Registrations (If Applicable)

Depending on business activity, the Branch Office may require:

• GST Registration
• Professional Tax Registration
• Shops & Establishment Act registration

---

✔ Step 10: Annual Compliance Requirements

A Branch Office must comply with:

RBI Compliance:

• Annual Activity Certificate (AAC) by Chartered Accountant
• Submission to RBI & AD Bank

MCA Compliance:

• Filing of annual financials
• Annual return under Companies Act

Income Tax Compliance:

• Filing of IT return if taxable income exists
• Maintenance of books of accounts
• Statutory audits (if applicable)

Since Branch Offices can earn income, they are taxed at corporate tax rates.

---

✔ Step 11: Closure/Extension Procedures

To close a Branch Office, NOC is required from:

• Authorized Dealer Bank
• Income Tax Department
• RBI

After settling liabilities, balances may be repatriated subject to FEMA rules.

---

Conclusion

Setting up a Branch Office is a strong option for NRIs and foreign companies who want commercial exposure in India without fully incorporating a subsidiary. With proper documents, RBI approval, and ongoing compliance, the process is structured and manageable.

---

Disclaimer

This blog is for informational purposes only. Regulatory norms may change. Please consult a legal, tax, or compliance expert before initiating the process.

Saving Mantra Blog: Step-by-Step Process for Liaison Office for NRI in India

NRIs and foreign companies often seek to explore business opportunities in India without engaging in commercial operations. Establishing a Liaison Office is the most suitable route for this purpose. It allows representation in India without generating income locally. This guide explains the complete step-by-step process for NRIs to set up a Liaison Office in India.

---

✔ What is a Liaison Office?

A Liaison Office acts as a communication channel between the foreign parent entity and Indian stakeholders. It cannot undertake commercial, trading, or industrial activities in India.

Permitted Activities

A Liaison Office may:

• Facilitate communication between parent company & parties in India
• Promote import/export from/to India
• Represent parent company in India
• Promote technical/financial collaborations
• Act as a buying/selling agent (without actual trading)

Restricted Activities

A Liaison Office cannot:

• Earn income in India
• Undertake commercial, trading, or manufacturing
• Invoice for services locally

All expenses must be funded through inward remittance from the parent company.

---

✔ Step 1: Check Eligibility Requirements

NRIs or foreign entities must satisfy:

• A profitable track record of minimum 3 years
• Net worth of USD 50,000 or more (confirmed by auditor)

---

✔ Step 2: Determine Approval Route

In India, Liaison Offices require RBI approval via:

• RBI Automatic Route: Most sectors covered
• RBI & Government Route: If parent entity is from a country of concern or sector-sensitive industry

Applications are submitted through AD Category-I Bank (Authorized Dealer Bank).

---

✔ Step 3: Prepare Required Documents

Foreign documents must be apostilled/notarized in the home country.

Mandatory Documents Include:

• Certificate of Incorporation/Registration of Parent Company
• Memorandum & Articles of Association
• Latest audited financial statements (3 years)
• Net worth certificate from CPA/CA
• Board Resolution authorizing Liaison Office
• Details of office premises in India
• NRI passport copy (if individual)
• KYC documents of parent company from home banker

---

✔ Step 4: File Application via FNC Form

The applicant must file Form FNC (Foreign Nationals Company) through the Authorized Dealer Bank, which forwards it to the RBI for approval.

---

✔ Step 5: Obtain RBI Approval

Upon review, the RBI issues the Approval Letter, which specifies:

• Validity period (usually 3 years)
• Permitted activities
• Compliance conditions

Only after approval can the Liaison Office set up operations.

---

✔ Step 6: Open Bank Account in India

The Liaison Office must open:

• Non-Interest Bearing Current Account

All operational expenses must be funded through inward remittances from the parent company.

---

✔ Step 7: Register with ROC (Ministry of Corporate Affairs)

Within 30 days of RBI approval, the Liaison Office must register as a Foreign Company with ROC using:

• Form FC-1 (filing with MCA)
• Filing of RBI approval letter
• Documentation details of authorized representatives

---

✔ Step 8: Obtain PAN & TAN

The Liaison Office must apply for:

• PAN (Permanent Account Number)
• TAN (Tax Deduction & Withholding Account Number) if tax deduction is required

---

✔ Step 9: Annual Compliance Requirements

A Liaison Office must comply with:

RBI Compliances:

• Annual Activity Certificate (AAC) from CA
• Filing with RBI & Authorized Dealer Bank

MCA Compliances:

• Financial statements filing
• Annual return under Companies Act

Income Tax Compliances:

• Filing of returns if applicable
• Maintaining books of accounts
• Statutory audits if required

---

✔ Step 10: Closure/Extension of Liaison Office

Before the expiry of the approval period, NRIs can apply for:

• Extension, or
• Closure (after clearing liabilities and audits)

Closure requires NOC from:

• AD Bank
• RBI
• Income Tax Department

---

Conclusion

Setting up a Liaison Office in India is a structured process that enables NRIs and foreign companies to establish a non-commercial presence. With proper documentation, RBI approvals, and annual compliance, NRIs can efficiently engage with the Indian market.

---

Disclaimer

This article is for educational purposes only. Regulatory requirements may change. Please consult a qualified professional before making legal, tax, or compliance decisions.

Introduction to Section 8 Company Registration

A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, formed for promoting charitable, educational, social, cultural, religious, or environmental objectives. Unlike other companies, profits of a Section 8 Company are reinvested to achieve its objectives and not distributed as dividends.

This Saving Mantra guide explains the step-by-step process for Section 8 Company registration in India, covering eligibility, documents, registration steps, timelines, and post-registration compliance—ideal for NGOs, CSR projects, startups with social goals, and professional institutions.

---

What Is a Section 8 Company?

A Section 8 Company is:

• A legally incorporated non-profit company
• Registered with the Ministry of Corporate Affairs (MCA)
• Eligible for tax exemptions and CSR funding (subject to approvals)

---

Key Benefits of Section 8 Company Registration

• Separate legal entity status
• High credibility with donors, corporates, and government
• Eligible for CSR funding
• No minimum capital requirement
• Exemptions from certain compliances and stamp duties
• Easy nationwide operations

---

Eligibility Criteria for Section 8 Company

To register a Section 8 Company:

• Minimum 2 directors (Private) or 3 directors (Public)
• At least 1 director must be an Indian resident
• Objects must be non-profit in nature
• Profits must be used only for promoting objectives
• No dividend distribution allowed

---

Step-by-Step Process for Section 8 Company Registration in India

Step 1: Obtain Digital Signature Certificate (DSC)

• DSC is mandatory for directors and subscribers
• Used for online filing on MCA portal

---

Step 2: Apply for Director Identification Number (DIN)

• DIN is required for all proposed directors
• Can be applied through SPICe+ form

---

Step 3: Name Approval (SPICe+ Part A)

• Propose suitable company name
• Name must reflect charitable objectives
• No words like “Private Limited” or “Limited” required

---

Step 4: Draft MOA & AOA

Prepare:

• Memorandum of Association (MOA) – objectives and scope
• Articles of Association (AOA) – internal governance rules

MOA must clearly state non-profit intent.

---

Step 5: Apply for Section 8 License

• Apply online through SPICe+ Part B
• Attach declarations, MOA, AOA, and financial projections
• Declaration of non-profit intent by directors

---

Step 6: File Incorporation Forms

Submit integrated forms:

• SPICe+ (INC-32)
• eMOA (INC-33)
• eAOA (INC-34)

---

Step 7: Certificate of Incorporation

Once approved by MCA:

• Section 8 License issued
• Certificate of Incorporation granted
• Company legally comes into existence

---

Documents Required for Section 8 Company Registration

• PAN & Aadhaar of directors
• Address proof of directors
• Passport-size photographs
• Registered office address proof
• Utility bill (not older than 2 months)
• Rent agreement or ownership proof
• MOA & AOA
• Declarations and affidavits

---

Time Required for Registration

• Average timeline: 10–20 working days
• Subject to document accuracy and MCA approvals

---

Post-Registration Compliance for Section 8 Company

After incorporation:

• Apply for PAN & TAN
• Open bank account
• Maintain books of accounts
• File annual returns with MCA
• Apply for 12AB and 80G registration (optional but recommended)
• Comply with CSR, FCRA (if applicable), and income tax laws

---

Common Mistakes to Avoid

• Vague or commercial objectives
• Incorrect financial projections
• Mismatch in documents
• Delay in post-registration compliances
• Non-maintenance of statutory records

---

How Saving Mantra Helps

Saving Mantra provides end-to-end Section 8 Company registration services, including:

• Structure and eligibility assessment
• Drafting MOA & AOA
• MCA filings and follow-ups
• Post-registration compliance support
• Integration with 12AB, 80G, CSR & FCRA services

---

Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. Registration requirements and compliance obligations may change as per MCA or government notifications. Readers are advised to consult qualified professionals before proceeding. Saving Mantra shall not be responsible for actions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Set Up of an Indian Company by a Foreign Entity (FDI)

Foreign companies and investors across the world are increasingly choosing India as a business destination. Thanks to simplified FDI norms, digital compliance, and a vibrant startup ecosystem, forming a company in India has never been more accessible. This guide explains the complete step-by-step process for a foreign entity to set up a company in India through FDI.

---

✔ Step 1: Determine FDI Route (Automatic or Government Approval)

Before initiating incorporation, a foreign entity must check if its investment falls under:

1. Automatic Route

No prior government approval is required. Most sectors such as IT, manufacturing, trading, and services fall under this route.

2. Government Route

Sectors like defense, print media, and multi-brand retail require approval from relevant ministries via the Foreign Investment Facilitation Portal (FIFP).

---

✔ Step 2: Decide Business Structure

A foreign company can invest in:

• Private Limited Company (most preferred)
• Public Limited Company
• Wholly-Owned Subsidiary (WOS)
• Joint Venture with Indian Partner
• Limited Liability Partnership (LLP) (in permitted sectors)

Choice depends on compliance level, sector permissions, and control preferences.

---

✔ Step 3: Obtain Digital Signature Certificates (DSC) for Directors

Foreign directors must obtain a Class 3 DSC to sign incorporation documents online.

Required Documents (Apostilled/Notarized):

• Passport
• Address proof
• Passport-size photo
• Email & mobile number

---

✔ Step 4: Apply for Director Identification Number (DIN)

Foreign nationals intending to act as directors in the Indian company require a DIN.
This is applied through the SPICe+ Part B form on the MCA portal.

---

✔ Step 5: Name Reservation through SPICe+ Part A

The company name must be:

• Unique
• Not similar to any existing name
• Not containing restricted words (e.g., Government, National, etc.)

Name reservation is done via SPICe+ Part A on MCA.

---

✔ Step 6: Prepare Incorporation Documents

Foreign entities must prepare and submit:

Mandatory Documents

• Charter documents of parent company (apostilled)
• Board Resolution authorizing investment
• Identity & address proof of directors
• Consent from directors (DIR-2)
• Registered office address proof in India

All foreign documents must be apostilled or notarized in the home country.

---

✔ Step 7: File SPICe+ Part B for Company Incorporation

The following are filed in this step:

• e-MOA
• e-AOA
• AGILE-PRO (for GST, EPFO, ESIC, bank account)
• INC-9 declaration
• Directors’ and shareholders’ details

After verification, the MCA issues the Certificate of Incorporation (COI) with:
✔ Corporate Identification Number (CIN)
✔ PAN
✔ TAN

---

✔ Step 8: Open a Bank Account in India

Foreign companies must open an FDI-compliant bank account for capital infusion.

Banks may ask for:

• COI
• Board resolution
• Address proof
• KYC of foreign shareholders

---

✔ Step 9: Remit FDI into the Indian Company

Foreign investment must be brought into India via banking channels compliant with FEMA regulations.

Bank provides a Foreign Inward Remittance Certificate (FIRC).

---

✔ Step 10: File FDI Reporting with RBI

Within 30 days of allotment, the company must file:

• FC-GPR on FIRMS Portal
• Share valuation certificate
• KYC of foreign investor

Non-compliance leads to penalties under FEMA.

---

✔ Step 11: Post-Incorporation Compliances

• Appointment of Auditor
• Issue of Share Certificates
• Maintenance of statutory registers
• Filing of annual returns with MCA
• TDS, GST, and income tax compliance
• FEMA/FDI compliance annually

---

Conclusion

Setting up an Indian company through FDI is a multi-step but streamlined process. With accurate documentation, proper FDI route selection, and timely regulatory filings, foreign entities can easily establish their presence in the Indian market.

---

Disclaimer

This article is for educational purposes only. Regulatory requirements may change. Consult a qualified professional before making legal, tax, or investment decisions.

Introduction to DARPAN Registration

NGO DARPAN Registration is an initiative of NITI Aayog to create a centralized database of NGOs and Voluntary Organizations (VOs) in India. Registration on the DARPAN portal is mandatory for NGOs seeking government grants, CSR funding, or collaboration with ministries and PSUs.

This Saving Mantra guide explains the step-by-step process for applying for DARPAN Registration (NITI Aayog) in India, including eligibility, documents, timelines, and post-registration usage.

---

What Is NGO DARPAN Registration?

NGO DARPAN is an online system that:

• Allots a unique DARPAN ID to NGOs
• Creates official recognition with Government of India
• Enables NGOs to apply for government schemes and grants
• Acts as a prerequisite for CSR, FCRA, and ministry-level approvals in many cases

---

Who Should Apply for DARPAN Registration?

DARPAN registration is applicable for:

• Charitable Trusts
• Registered Societies
• Section 8 Companies
• NGOs and Voluntary Organizations

Both newly registered and existing NGOs can apply.

---

Benefits of DARPAN Registration

• Mandatory for government funding and grants
• Recognized by central ministries and departments
• Improves NGO credibility and transparency
• Required for CSR partnerships in many cases
• Simplifies compliance and reporting

---

Step-by-Step Process for DARPAN Registration in India

Step 1: Ensure NGO Legal Registration

Before applying, the NGO must be registered as:

• Trust
• Society
• Section 8 Company

Unregistered entities are not eligible.

---

Step 2: Collect Required Documents

Prepare scanned copies (PDF/JPEG):

• NGO registration certificate
• PAN of NGO
• PAN and Aadhaar of office bearers
• Trust deed / MOA / Bye-laws
• Details of governing body members
• Address proof of registered office

---

Step 3: Create Login on DARPAN Portal

• Visit NGO DARPAN portal
• Register using email ID and mobile number
• Verify OTP and create login credentials

---

Step 4: Fill NGO Profile Details

Enter:

• NGO name, registration number & date
• Type of organization (Trust/Society/Section 8)
• Area of operation (State/District-wise)
• Sector of activities (Education, Health, CSR, etc.)
• Contact and communication details

Accuracy is critical to avoid rejection.

---

Step 5: Enter Governing Body Information

Provide:

• Names and designations of trustees/directors
• PAN & Aadhaar details
• Contact information

This information must match registration records.

---

Step 6: Upload Documents

Upload:

• Registration certificate
• Governing documents
• PAN cards
• Identity proofs

Ensure documents are clear and legible.

---

Step 7: Submit Application & Verification

• Review all entered details
• Submit application online
• Application goes for verification

---

Step 8: Allotment of DARPAN ID

Once approved:

• Unique DARPAN ID is generated
• NGO profile becomes active
• ID can be used for government portals and grants

---

Time Required for DARPAN Registration

• Typical processing time: 3 to 10 working days
• May vary based on verification and data accuracy

---

Common Reasons for DARPAN Rejection

• Mismatch in PAN or registration details
• Incomplete governing body information
• Incorrect document uploads
• Typographical errors

---

Post DARPAN Registration Compliance

After registration, NGOs should:

• Keep profile updated regularly
• Update changes in trustees, address, or activities
• Use DARPAN ID while applying for grants or schemes

---

How Saving Mantra Helps NGOs

Saving Mantra provides end-to-end DARPAN registration services, including:

• Eligibility verification
• Document preparation & validation
• Online application filing
• Error correction & follow-ups
• Integration with 12AB, 80G, FCRA & CSR compliance

---

Disclaimer

This article is for informational purposes only and does not constitute legal or professional advice. DARPAN registration requirements and verification processes are subject to change as per government notifications. Readers are advised to consult qualified professionals before applying. Saving Mantra shall not be responsible for decisions taken based on this information.

A Legal Heir Certificate is an essential document for identifying the rightful heirs of a deceased person. For Non-Resident Indians (NRIs), it is crucial for accessing government benefits, pension claims, property mutation, insurance settlements, and administrative updates in India after the death of a family member.

This Saving Mantra guide provides a clear step-by-step process, including eligibility, documents, authorities involved, timelines, regional variations, and practical tips for NRIs.

---

⭐ What is a Legal Heir Certificate?

A Legal Heir Certificate is an official document issued by Indian authorities confirming the list of legal heirs of the deceased individual.

It is used for:

✔ Pension claims
✔ Provident Fund settlement
✔ Government employment dues
✔ Property mutation in municipal records
✔ Insurance claims
✔ Electricity/water connection transfer
✔ Service records update

---

⭐ Difference Between Legal Heir Certificate & Succession Certificate

Feature	Legal Heir Certificate	Succession Certificate
Purpose	Identify legal heirs for government & admin purposes	Claim movable assets like bank funds & securities
Issued By	Local revenue authorities	Civil court
Covers	General heirship	Financial/debt claims
Timeline	15–60 days	4–12 months
Cost	Nominal	Court fees apply

---

⭐ Who is Considered a Legal Heir in India?

Legal heirs generally include:

• Spouse
• Children (biological/adopted)
• Parents
• Siblings (in absence of above)

---

⭐ Who Can Apply for a Legal Heir Certificate?

Eligible applicants include:

• Spouse of the deceased
• Son or daughter
• Parents
• In some cases, sibling (if primary heirs are absent)

NRIs may apply via:

✔ Self-application when in India, or
✔ Power of Attorney (PoA) issued abroad

---

⭐ Authorities Issuing Legal Heir Certificate in India

Depending on the state, certificates may be issued by:

✔ Tahsildar / Taluk Office
✔ District Collector / SDM
✔ Municipal Corporation / Revenue Officer
✔ Village Officer in rural areas
✔ E-District Portal (Digital Issuance in some states)

---

⭐ Step-by-Step Process for Obtaining Legal Heir Certificate for NRI

---

Step 1: Collect Required Documents

Common documents include:

✔ Death Certificate (mandatory)
✔ Identity proof of deceased (PAN/Passport/Aadhaar)
✔ Applicant ID proof (Indian or Foreign)
✔ Address proof (India or overseas)
✔ Family tree / genealogical affidavit
✔ Relationship proof (Birth/Marriage Certificate)
✔ NRI’s Passport + Visa / OCI / PIO (if applicable)
✔ PoA (if NRI applying through representative)

---

Step 2: Execute Power of Attorney (If Applicant is Abroad)

If the NRI cannot travel to India:

1. Advocate drafts PoA
2. NRI signs before:
   • Indian Consulate/Embassy, or
   • Foreign Notary + Apostille (Hague Convention)
3. PoA is sent to India and adjudicated (if required by state)

---

Step 3: Apply to the Relevant Authority

Application can be submitted:

✔ Offline: At revenue office (Tahsildar/SDM)
✔ Online: Via state e-district or Seva portal (where available)

States with online system include:

• Delhi (e-District)
• Karnataka (Nadakacheri)
• Tamil Nadu (TNeGA)
• Kerala (e-District)
• Maharashtra (Aaple Sarkar)

Details required in application:

• Name & details of deceased
• Date & place of death
• Details of all legal heirs
• Purpose of certificate

---

Step 4: Verification & Field Inquiry

The issuing authority verifies:

✔ Authenticity of documents
✔ Family tree details
✔ Heirship claims through village officer/municipal inspector
✔ Cross-verification with local records

Heirs may be contacted for confirmation.

---

Step 5: Issuance of Legal Heir Certificate

Upon successful verification, certificate is issued mentioning:

• Deceased’s details
• Date of death
• Full list of legal heirs and relation

Certificate may be issued as:

✔ Physical document
✔ Digitally signed PDF (in digital states)

---

⭐ Timeline for Issuing Legal Heir Certificate

Typical processing time:

Scenario	Timeline
Normal case	15–45 days
Complex family verification	45–90 days
Online system states	7–30 days

---

⭐ Government Fees

Government fees are nominal, generally:

• Application fee: ₹10 – ₹50
• Stamp + Service charges: ₹50 – ₹200
• PoA attestation abroad: Varies by Consulate/Notary

---

⭐ Purposes for Which NRIs Use Legal Heir Certificate

NRIs commonly need the certificate for:

✔ Pension & PF settlement
✔ Government employment benefits
✔ Property mutation with Municipal Authorities
✔ Transfer of utility connections
✔ Insurance settlements
✔ Record updates with banks & companies
✔ Family settlement documentation

---

⭐ Common Mistakes NRIs Should Avoid

❌ No PoA execution before leaving home country
❌ Not preserving birth/marriage proofs
❌ Wrong authority approached for issuance
❌ Relying only on Will without administrative certificate
❌ Ignoring state-specific procedures

---

⭐ State-Specific Notes

• Tamil Nadu & Karnataka: Strong online systems, faster processing
• Maharashtra & UP: More field verification, longer timelines
• Kerala & Delhi: E-district simplifies process for NRIs via PoA

---

Disclaimer

This blog is for informational purposes only and does not constitute legal advice. Procedures for issuance of Legal Heir Certificates vary across Indian states and may change. Readers should consult local authorities or legal professionals before proceeding.