• Facebook
  • Twitter

What is Section 8 Company Registration

A Section 8 Company is an organization which is registered as a Non-Profit Organization (NPO). NPO/company has its objective of promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions exactly like a limited company including all the rights and obligations that come with such a company. However, it differs from a company in one very crucial aspect, i.e. it cannot use the words “Section 8” or “Limited” in its name.

The income of the Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company. The central government provides an incorporation certificate to all such companies and also informs them about some restrictions and conditions. In case they don’t fulfil them, the central government may also order them to wind up the company. In case fraud objectives of the Company are proved, legal action will be taken against all officers of the Company.

Contact Support

I'm a paragraph. Click here to add your own text and edit me. It's easy.

Documents Required For Section 8 Company Registration

 

>>Digital Signature Certificate                                                         >>Director Identification Number                                                                             >>Memorandum of Association

>>Articles of Association                                                                   >>ID proof for members: (Aadhar Card, Passport, Voter ID)                                >>Passport size Photographs

>>Director’s detail                                                                              >>Address Proof for registered address

Eligibility for Section 8 Company Registration

Object must be Charitable or to promote arts, science, commerce etc

Intends to apply all its profit in promoting the objectives

Assures the prohibiting of the payment of dividends to any of its members

Concerns Related to Section 8 Company

1. Name approval :

You need to provide different name options to MCA out of which one will be selected. Names provided should ideally be unique and suggestive of company business.

2. Approval of other authorities :

The Registrar of Companies may require the applicant to furnish the approval of any department,regulatory body, appropriate authority, or Ministry of the Central or State Government(s) in relation to the work to be done.

3. Obtaining Section 8 Company Licence :

After the company’s name is approved, one needs to apply for a Section 8 Company licence from the MCA.The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers.The Registrar might also consult any other regulatory bodies and necessary authorities.

Thereafter, the Registrar of Companies may,at its discretion, grant the licence with or without certain conditions. The Registrar may direct the company to insert in its memorandum, or in its articles, or partly in one and partly in the other, such licencing conditions as may be specified by the Registrar in this behalf.

4. MOA & AOA submission :

Once the licence is obtained, one needs to draft Memorandum of association and Articles of Association. But the object of the company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscription statement.

5. Get Section 8 Company incorporation certificate :

It typically takes 15- 25 days to form a Section 8 company and get the incorporation certificate. The Certificate of Incorporation is proof that a company exists. It also includes your CIN (Company Incorporation Number).The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers.The Registrar might also consult any other regulatory bodies and necessary authorities. Thereafter, the Registrar of Companies at its discretion, may grant the licence. And such licence may contain conditions as deemed necessary by the registrar

6. Apply for PAN, TAN and Bank account :

Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.