The idea of incorporating a non-profit making company in India is not a new term as it has been in the business community since ages. Section 8 company pertains to a established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members
As far its structure is concerned, it is much alike a trust or society as it is registered under the Central Government’s Ministry of Corporate Affairs. A Section 8 Company enjoys many privileges and exemptions under Company Law.
A Non-profit Organization is a Company which
- Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
- Intends to apply its profits, if any, or other income in promoting its objects; and
- Intends to prohibit the payment of any dividend to its members
We, at FINLEGALFORTE, make it easy for our clients to incorporate a Section 8 company by providing all necessary legal and professional support in respect to incorporation and business management. Our highly talented legal professionals are experts in lending you full support to help you realize your business dream.
PREREQUISITE TO FORM SECTION 8 COMPANY
Firstly provide all the required documents mentioned below.
- DIGITAL SIGNATURE CERTIFICATE (DSC – CLASS – II)
The Second stage is to Apply for DSC. DSC is required for filling the forms of company registration electronically to Ministry of Corporate Affairs. We obtain it from (certifying agencies.).
- DIN (DIRECTOR IDENTIFICATION NUMBER) The Third stage is to apply for DIN. The Unique Number allotted to the Directors of the company which remains valid for whole life of the director and is required to become director of any company.
- NAME AVAILABILITY
The Fourth stage is to apply Name of the company. Most Crucial aspect of company registration is the name approval of the company.
- DRAFTING OF MOA & AOA
The Fifth step is start after the name of the company is Approved the Memorandum of Association and Articles of Association of the company is drafted, the last page of the MOA and AOA is referred as subscriber sheet which need to be filled in by the promoters in their own hand.
- LICENSE UNDER SECTION 8 FOR NEW COMPANIES WITH CHARITABLE OBJECTS
A person or an association of persons desirous of incorporating a company with limited liability under sub-section (1) of section 8 without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, shall make an application in Form No.INC.12, INC 13, INC 14 & INC 15 along with the prescribed fee, to the Registrar for a license under sub-section (1) of section 8.
- CERTIFICATE OF INCORPORATION
If after filling the Requisite forms for incorporation with the Registrar of Companies along with fees, ROC is satisfied with the contents of the documents filed, ROC will issue the License in form No. INC.16 (Certificate of Incorporation) under section 8(1) read with rule 19 of Companies (Incorporation) Rules, 2014. Such company registered under section 8 shall enjoy all the privileges and be subject to all the obligations of limited companies.
Documents required for registering an One Person Company
1. Memorandum of Association
2. Articles of Association
3. Affidavit and declaration by first Subscriber(s) and director(s)
4. Proof of registered office
5. Copies of utility bills not older than two months
6. Copy of approval in case the proposed name contains any word(s) or expression(s) which requires approval from Central Government.
7. If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy.
8. NOC from the sole proprietor/partners/other associates/existing company.
9. Proof of identity and residential address of the subscriber.
10. Proof of identity and residential address of directors.