Section 8 Company Registration
A Section 8 Company is a specific type of nonprofit organization in India, formed under Section 8 of the Companies Act, 2013 (previously Section 25 of the Companies Act, 1956). Section 8 Companies are established for promoting charitable, scientific, artistic, educational, research, social welfare, or environmental purposes, without the intent of making profits. Here are the steps to register a Section 8 Company in India:
1. Name Approval:
– Choose a unique name for your Section 8 Company and apply for name approval through the Ministry of Corporate Affairs (MCA) online portal.
2. Digital Signature Certificate (DSC):
– Obtain Digital Signature Certificates for the proposed directors and subscribers. At least two directors must obtain DSCs.
3. Director Identification Number (DIN):
– Ensure that all the proposed directors have a valid DIN. If not, apply for DIN for those who do not have one.
4. Prepare Memorandum and Articles:
– Draft the Memorandum of Association and Articles of Association for your Section 8 Company. These documents should reflect the objectives and rules of the company in line with Section 8 of the Companies Act, 2013.
5. File Application with the Registrar of Companies (RoC):
– Prepare and submit the application for Section 8 Company registration to the RoC. Include the following documents:
– Memorandum of Association and Articles of Association.
– Declaration in Form INC-14 by a Chartered Accountant.
– Declaration in Form INC-15 from a professional.
6. Licensing under Section 8:
– Apply for a license under Section 8 from the Regional Director (RD) through Form INC-12. The application must include various documents, such as a statement of assets and liabilities, a declaration by the directors, and an estimate of the future annual income and expenditure of the company.
7. Registrar's Approval:
– Once the application is submitted, the Registrar of Companies (RoC) will verify the documents and, if satisfied, grant approval for the Section 8 Company.
8. Certificate of Incorporation:
– Upon approval, the RoC will issue the Certificate of Incorporation, and the company is officially registered as a Section 8 Company.
9. Commence Operations:
– With the registration in place, your Section 8 Company can begin its nonprofit operations as per the objectives outlined in the Memorandum and Articles.
10. Compliance:
– Ensure compliance with ongoing statutory requirements, such as annual financial statements, reports, and audits, as per the regulations governing nonprofit organizations.
Registering a Section 8 Company requires careful preparation of documents and adherence to the legal and regulatory procedures. It’s advisable to consult with professionals or legal experts like Legato Business Solution LLP experienced in nonprofit organization registrations to ensure a smooth and compliant registration process.