How to incorporate a Section 8 Company in India

As per Companies Act 2013, now Non-Profit Companies are governed by Section 8. From April 1, 2014 onwards, MCA has enhanced Government fees , so it is a bit costlier now. As soon as RD gives approval, ROC will aprove the forms.

Section 8 company details:

As per Section 8 of Companies Act, 2013 where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company—
(a) 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;

(b) intends to apply its profits, if any, or other income in promoting its objects; and

(c) intends to prohibit the payment of any dividend to its members,

the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited” , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.

STEPS TO REGISTER A NGO AS COMPANY:

1. GET DSC FOR THE DIRECTOR- It is require to obtain a Digital Signature for proposed Director of the Company. As per the provisions, it should now be only in USB token.

2.APPLY FOR DIN OF THE DIRECTORS- After getting DSC, get Director Identification Number for each of the Director of the proposed company. There should be atleast 2 director in the Company. To get DIN, it is required to file Form DIN 1.

3. APPLY FOR NAME OF THE COMPANY- After getting DIN for each director apply for name of the company. You can apply upto 6 names in the order of preference for the prospective company. For applying for name file E-Form INC-1 as per the regulations of Companies Act 2013.

4. LICENSE FOR SECTION 25 COMPANY- It is an additional requirement in Sec. 8 Company. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form RD-1 is to be filed with Regional Director in order to obtain a license for such company. Regional Directors are required to grant the licence within 30 days from the date of filing the application.

4. Get MOA and AOA stamped- Pay appropriate Stamp Duty and get your MOA and AOA vetted.

5. After obtaining license number, applicant can proceed further to incorporate a company by filing e forms INC 7-
Application or declaration for incorporation of a company

6. File Form INC 22 -Notice of situation or change of situation of registered office

7. File Form DIR 12- Particulars of appointment of managing director, directors, manager and secretary and the changes among them or consent of candidate to act as a managing director or director or key managerial personnel.

8. After that, ROC will issue Certificate of Incorporation.

Should you need any professional advice, you can mail at info@cracktax.com.