Guidelines for Section 8 Company Registration

Have you ever heard about section 8 companies? Are you looking to find out, what do section 8 company stands for? Then you are in the right spot.

Section 8 company is one of the modes of setting up an NGO (Non- government organization). Section 8 company is regulated under the Companies Act, 2013 and NGOs are regulated by the following Acts-

1. Trust under Indian Trusts Act, 1882
2. Society under societies registration Act, 1860
3. Section 8 Company under Companies Act, 2013

Further, in this blog, we will discuss the guidelines for section 8 company registrations, which include objectives of registering a section 8 company, the process of registering a section 8 company, documents required for the registration.

Basic objectives of section 8 company

When you start a Section 8 Company, there are certain purposes that need to be served it, which includes the promotion of activities such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research etc.

The profits earned by section 8 company are not used by the shareholders for their benefits; instead, profits are only used for the promotion of the objectives of the company.

Steps involved in filing the application of section 8 company

You need to follow the steps given below for filing the application of section 8 companies-

STEP 1: Digital Signatures

The first step is to generate the digital signatures of all the proposed directors and shareholders of the company, as these will be required to sign the application and other relevant documents.

STEP 2: Name approval of the company

There is a RUN (reserve unique name) service available, which can be used for the approval of the name. You are allowed to propose 2 names with MCA, out of which one will be selected. The name of a Section 8 company must be in accordance with the Company (Incorporation) Rules, 2014.

The proposed name must be unique and should not resemble any of the already registered names.

STEP 3: Drafting MOA and AOA

The Memorandum of Association and Articles of Association of the proposed company must be drafted and filed.

STEP 4: SPICE form

In this step, you need to file incorporation application in SPICE form along with the other required declarations and submit it to the respective registrar of companies. If the proposed directors of the company do not possess DIN (Director Identification Number) then they can directly apply for it through SPICE form.

STEP 5: Form INC-12

An online application form is required to be submitted in Form INC-12 to the respective ROC to get the license issued.

STEP 6: Incorporation of the Company

Once you submit the application of registration, it is thoroughly inspected by the designated office. If the application I found to be correct and genuine, the certificate of incorporation will be granted.

Next, we will take a list of documents that need to be handy at the time of the Section 8 company formation.

List of documents required for setting up a section 8 company-

Here is a list of documents to be submitted at the time of the section 8 company registration-

•           The Utility Bills of the registered office
•           The Consent of the person to act as the Director in the Form DIR-2
•           Memorandum of association
•           Article of Association
•           ID proof for members (Aadhar card, passport, Voter ID)
•           Passport size photographs
•           Directors details
•           Address proof

Hope you have a better understanding of section 8 companies. For more information please contact Enterslice.