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-
- Trust under Indian Trusts Act, 1882
- Society under societies registration Act, 1860
- 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.
Hello..Awesome blog with very useful information. Thanks for sharing this information with us. Visit our website for Section 8 Company Registration
ReplyDeleteThanks for sharing.
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