SRCC

Section 8 Company

Section 8 Company Registration

The main goal of forming a Section 8 corporation is to promote non-profit goals including trade, business, the arts, charity, education, religion, environmental protection, social welfare, sports research, and so on.

A minimum of two directors are required to form a Section 8 Corporation. In addition, in the case of a Section 8 Company, there is no requirement for a minimum paid-up capital.

In India, a non-profit organisation can be registered with the Registrar of Societies or as a non-profit company under the Company Act, 2013, Section 8 Company.

If this firm makes any earnings, they are used to further the company’s goals rather than being paid as dividends to its shareholders.

Under the previous Companies Act, 1956, a Section 8 Company was the same as a Section 25 Company of the new Companies Act of 2013. It has now been renamed Section 8.

Section 8: Eligibility of Businesses
Who can Incorporate a Section 8 Company?

If an individual or group of individuals has the following goals, they can file for Section 8 Company Registration. The goals must be validated to the satisfaction of the government at large.

  1. If the company’s goal is to promote science, business, education, art, sports, research, charity, social welfare, environmental protection, or any other goal, it must declare it.
  2. If the firm intends to invest any earnings or income produced after incorporation only in the advancement of such goals; if the company does not intend to issue dividends to its shareholders.
Documents Required for Section 8 Company
  1. Director Identification Number Registration (DIN)
  2. Memorandum of Association Articles of Association Passport size Photographs Digital Signature Certificate
  3. Aadhar Card, Passport, and Voter ID are examples of member identification.
  4. Director Address Proof Specifications
How to obtain Digital Signature for Directors?

In India, a Trust is controlled by the trustees mentioned in the Trust Deed. Section 8 Company will be governed by the Board of Directors, similar to a Private Limited Company. During the process of incorporation, the DSC is obtained for the proposed directors. The following documents must be submitted.

  1. PAN or Aadhar card.
  2. Drivers License/ Passport/ Election ID/ Government Issued ID.

After submitting these documents, the applicant must complete an OTP and eKYC procedure to obtain a DSC in their name.

Section 8 Company Name Approval
  1. Simultaneous to the Digital signature application processing, an application for name approval can be initiated for the Section 8 Company to the MCA.
  2. The name of a Section 8 Company must end with the words like Foundation, forum, association, federation, chambers, council, electoral trust. Etc.
  3. The Name approval process can be completed within with24-72 hours.
  4. Memorandum of Association and AOA (Articles of Association)
  5. They are drafted after obtaining the name approval and other documents included in INC12 filed with the ROC.
  6. It is necessary to sign and mention his name, description, address, and occupation in the MOA and AOA subscription.
  7. It is necessary to have one witness present who will attest the signature.
Process of Incorporation

Step by step procedure to incorporate a Section 8 Company

  1. In the first step, we obtain the DSC for the proposed Directors of the Section 8 Company.
  2. After obtaining the DSC, file form DIR 3 with the ROC for getting a Director Identification Numbers.
  3. After the DIR 3 is approved, the ROC will allot the Director Identification Number to the proposed Director.
  4. To apply for a company name, it is necessary to file Form INC 1 with ROC.
  5. It is required to file Form INC 12 after receiving approval to apply for a licence for the Section 8 Company. Following approval, a Section 8 licence will be given in Form INC 16.
  6. After obtaining the licence, file SPICe Form 32 with the ROC for incorporation, together with the affidavits, declarations, KYC, permission letter, draught MOA, and AOA.

The ROC issues a Certificate of Incorporation if the filed forms satisfy the ROC.

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