Need to know all about Section 8 Company Registration

Posted by Enterslice ITES Pvt Ltd on July 8th, 2019

Interested in establishing an NGO/NPO then know these amazing aspects of Section 8 company registration along with its requirement and procedure.

What is Section 8 Company Registration?

A Section 8 Company is thereby an organization that can be registered as a Non-Profit Organization under the Companies Act, 2013 with an objective of promotion of arts, charity, commerce, education, protection of environment, social welfare, science, sports, research, religion and intends to apply its profits, or other income in promoting its objects. It somehow functions exactly like a Public limited company including all the rights and obligations provided to such company. However, it differs from a the other companies in one very crucial aspect of using the words “Section 8” or “Limited” in its name.

What is eligibility for the registration of Section 8 Company?

You need to accomplish following condition to for a section 8 company:

• The main Objective of the company must be Charitable or to promote science, arts, commerce etc
• The company must intend to apply all its profits in the promotion of the objectives  of the company.
• The company must assure the prohibition of the dividend payments to its members.

What are the documents required for registration of section 8 company?

Here are the documents required for section 8 company registration:

• Digital Signature Certificate for all the directors of the company
• Director Identification Number for all the directors of the company
• Memorandum of Association and Article of Association
• ID proof for members including Aadhar Card, Passport or Voter ID
• Passport size Photographs of all the directors/ shareholders
• Details of the Directors if are the Members of other Companies/LLPs
• Address Proof

What is the Procedure for section 8 company registration?

Section 8 company is the only type of NGO that can be registered online. Here are some specific steps you need follow to incorporate section 8 company:

1. Application of DSC & DPIN:

Apply for Digital signature and DPIN. Digital signature is an online signature used in filing and DPIN refer to Directors PIN number issued by Ministry of Corporate Affairs. If the directors already have their DSC and DPIN then you can skip this step.

2. Get your Company Name approval:

You need to provide 3 different name options to MCA for the approval. Names provided should be unique and suggestive of company business and objectives.

3. Applying for Section 8 Company License:

After getting the company’s name approval, now you can apply for a Section 8 Company license from the MCA. The Registrar may also consult any other regulatory bodies and necessary authorities for the issuance of the license.

4. Submission of MOA & AOA:

Once you have obtained the license, you need to draft MOA and AOA including the charitable objectives of the company. Both of the MOA and AOA are filed with the MCA along with the subscription statement.

5. Get the incorporation certificate of section 8 company:

It takes around 15- 25 days to get the incorporation certificate. The Certificate of Incorporation is proof of existence of the company. It also includes CIN (Company Incorporation Number). The Registrar merely waits wait for 30 days for any objection, if any person pursuant to notice published in newspapers. The Registrar may also consult other regulatory bodies and necessary authorities for the verification of the documents and application. Thereafter you may receive the certificate of incorporation.

6. Apply for PAN, TAN and Bank Account:

Once you have received the COI, now you need to apply for PAN and TAN. PAN and TAN are issued in 7 working days.