In India there are a total of three types of NGOs, Section 8 company is one of them. To register Section 8 company one can visit the online portal of the Ministry of Corporate Affairs. The registration procedure and documentation all are available on the same website but for a better knowledge of Section 8 Company registration one can also refer to the governing law which is the Companies Act 2013. Such companies are formed with the motive of charitable purpose. They can do Philanthropic and altruistic works. They cannot work with the motive of making a profit.
These companies can work for the promotion of education, women empowerment, environment, employment, rural and urban development, sustainable development, pollution-free India, human rights etc. In short such kinds of entities are there for the welfare of the society. They work hand in hand with the government for the social and economic development of the country.
What do you know about Section 8 Company?
As per section 8 of the company’s act 2013, a person or association will be known as a section 8 company if it fulfills the three conditions given below:
- The objective of the association is to work for charitable purposes which include activities like the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, etc.
- The profit that the register section 8 company will get, will be again invested in the promotion of the objective or purpose of the company
- Payment of any kind of dividend to its members is prohibited
Eligibility Criteria to Register Section 8 Company in India
Not everyone can register Section 8 company in India. It has its eligibility criteria. Associations that fit these criteria can register Section 8 company in India. Eligibility criteria for section 8 companies are given below:
- An Indian national or Hindu Undivided Family, commonly known as HUF, is eligible to incorporate a Section 8 Company in India under the Companies Act of 2013
- For incorporating a section 8 company it is mandatory to have at least one director.
- The third condition is that the objective or purpose of the Section 8 company registration should be welfare of the society
- It must not be working to make personal profit
Documents Required to Register Section 8 Company
Before applying for the registration of Section 8 Company, you must go through the list of documents given below:
- Articles of Association, commonly known as AOA and Memorandum of Association also known as MOA
- Declaration by the first director or directors of the company
- Declaration by the first subscriber or subscribers of the company
- Business address proof such as electricity, water, or gas bill, etc.
- A copy of the resolution which is passed by the promoter of the company
- Consent of Nominee in the Form INC-3
- Residential and identity proof of nominees of the company
- Residential and identity proof of subscribers of the company
- Applicant’s identity and residential proof will be required
- Digital Signature Certificates (DSC) of all the directors are mandatory
- Declaration of unregistered companies will be needed
Procedure of Registering Section 8 Company in India
There is a proper step-by-step procedure to register Section 8 company in India. That procedure has been given under company law in detail. Follow the steps given below to register such a company in India as per the procedure given under the Companies Act:
Check Eligibility
To register a section 8 company in India, it’s compulsory to fit the eligibility criteria for the same. Hence the very first step to register such kinds of companies in India is to check the eligibility criteria. If a person or association fits the eligibility criteria, only then they can move to the next step. To check the eligibility one can refer to the above point which is “Eligibility Criteria to Register Section 8 Company in India”.
Collect all the Documents
The procedure of registration of Section 8 Company in India is online for those who want to register such a company, they have to submit or upload proper documents with the application. If any document is missing, registration will not be given. In fact in such a situation when documents are missing the procedure may not be completed, also there are chances that your file will not be submitted. Even if your file got submitted, the department will raise the query about the documents that are missing. If you are unable to provide them the same document they will reject your application.
Get registered on MCA
Once a person or association has completed the above two steps which are “check eligibility criteria” and “collect documents”, they can move ahead with the third step which is submitting the application. One cannot directly submit the application; there is a proper step-by-step procedure for the same. Hence to submit the application to MCA follow the steps given below:
- Obtain a Digital Signature Certificate, popularly known as DSC of all the directors of the company
- Obtain the Director Identification Number of all the directors
- Visit the official portal of the Ministry of Corporate Affairs
- Now fill out the name approval form and reserve a company name for your entity
- Once the name is reserved file an application to register section 8 company in India
- Upload all the documents as per the requirement with the application
- When the applicant submits the file, the Registrar of Companies will verify the application and within 15-20 days of submitting the application you will get the response of the MCA.
- If ROC finds everything proper they will issue the incorporation certificate, but if they find anything missing they will raise the query and the applicant has to resolve that query then.
- After getting an Incorporation Certificate. Apply for PAN Card of the company
Conclusion
Section 8 Company in India is a non-profit entity formed for altruistic purposes. To register section 8 company in India, applicants must meet eligibility criteria, collect necessary documents, and follow an online application process through the Ministry of Corporate Affairs (MCA) portal. The registration involves obtaining Digital Signature Certificates (DSC) for directors, reserving a unique company name, submitting documents, and awaiting approval from the Registrar of Companies (ROC).
Successful applicants receive an incorporation certificate and can then apply for a PAN card. Section 8 Companies play a crucial role in promoting social welfare in India by adhering to these legal procedures. The process of registering such kinds of companies is online; still, there are a lot of difficulties an applicant faces because of a lack of knowledge. Hence it is suggested to take the advice of an expert while registering a Section 8 company in India.
