Today at MyOnlineCA we are talking about Section 8 Company Registration in India. Section 8 Company are established for the purpose and objective of promoting commerce, art, science, sports, education, research, religion, social welfare, and charity, conserve environment or any such other purposes.Thus, It is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
A Section 8 Company registration is similar to a Trust or Society Registration in nature and purpose expect, a section 8 Company is registered under Ministry of Corporate Affairs and Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages like improved recognition, better legal standing and has greater credibility amongst Government departments and other stakeholders.
Eligibility for Forming Section 8 Company Registration India
Eligibility to be registered under Section 8 of the Companies Act, 2013 as a limited company are as Follows :
- The purpose must be to take part in charitable activities and to promote arts, science, commerce etc, there should be intended to implement all its profit in boosting the objectives and Assures the restricting the payment of dividends to any of its members.
- Minimum two shareholders and two Directors, whereas, the directors and shareholders can be the same person but at least one of the Director shall be a resident of India can form a section 8 Company.
Incorporation of Section 8 Company India Registration Process in
Preconditions to the Registration Process
Procure Digital signatures which are required for the registration process, as the forms are filed online and should be digitally signed. DSC should be obtained for the proposed directors of the company. Digital signature certificates are issued by government recognized certifying agencies. The cost of securing DSC differs depending upon the certifying agency. You must obtain either Class 2 or Class 3 kind of DSC. Under Class 2 category, the identity of a person is confirmed against a pre-verified database whereas, under class 3 category, the person needs to be present before registering authority to give proof of his/her identity.
Apply for Director Identification Number (DIN): You have to apply for the DIN of the proposed directors of the company. The application for allotment of DIN has to be made in Form DIR-3. You have to attach the scanned copy of necessary documents such as a self-attested copy of PAN, Identity and Address proof of directors along with the form and submit it online on the MCA Portal. The form must be attested by a practicing professional who can be a chartered accountant, a company secretary or a cost accountant.
Number of Forms Required for Registration
Form INC – 1
Form 1 is filed for the reservation of name of the proposed company. But before quoting the name in the form, it is recommended that you must access the free name search facility of existing companies available on the MCA portal. The system will provide a list of closely resembling names of the existing companies based on the search criteria filled up. This will help you to avoid choosing the similar name already existing. You can make up to 6 choices in the order of your preference in the Form INC 1.
Form INC-12 is filed for the grant of a license to operate as section 8 company. Along with this form, you are required to attach a draft copy of Memorandum of association and Articles of Association. There is a prescribed format for Memorandum of Association of section 8 company in Form INC 13. The subscription pages of MOA and AOA shall be signed by each subscriber along with name, address, description, and occupation in the presence of at least one witness.
Form INC 12 is filed with the following attachments :
- INC-13 for Memorandum of Association
- Draft Articles of Association
- INC-15 for the declaration by each subscriber to MOA that the draft memorandum and articles of association have been drawn up in conformity with the provisions of section 8
- Estimated statement of Income & Expenditure for the next three years
- List of proposed Promoters and Directors of the Company
The following forms are required to be filed after the issuance of the license to the company:
Form INC 7
- INC 7 is the application for the incorporation of the company. The following documents must be attached along with Form INC 7:
- Memorandum and articles of the company duly signed by all the subscribers
- An affidavit from each of the subscribers and first directors in Form INC 9 that they are not guilty of any offense or misfeasance
- Declaration in Form INC 8 that all the requirements of the Companies Act have been complied with
- Address of correspondence till the registered office is fixed
- Address and Identity proofs of all the subscribers to MOA and first directors of the company
Form INC 22
- Form INC 22 is filed for providing the notice for the situation of company’s registered office. It can be filed along with Form INC 7 or within 30 days from the incorporation of the company.
- Form DIR 12
- Form DIR 12 is filed for the appointment of the directors of the company. It must be filed within
- 30 days from the date of the appointment of the directors.
Certificate of Incorporation
If the registrar is satisfied with the details mentioned in the form along with supporting documents, then he will issue the certificate of incorporation to the company and will allow a unique company identification number called as CIN.
Conclusion for Section 8 Company Registration
A non – profit organization which are often known as NGO can be registered as a Company under Section 8 of the Companies Act, 2013 and it can also be registered as a Trust and a Society. Section 8 Company format of an NGO is the most popular form of NGO in India. It is, however, easy to register, run or manage a Section 8 Company in comparison to a Trust and a Society.