How to Register Section 8 Company in India?
In India, a non-profit organization (NPO) is not a new term. It is quite old and popular term commonly known as NGO.
In India non-profit organization or NGO can be formed in many ways. It can be registered as a Trust, by making a Trust deed, or as a Society, under the Registrar of Societies or as a Section 8 Company, under the Companies Act, 2013.
In this article we will talk all about Section 8 Company, its advantages, process for registration of section 8 company, documents requirements etc.
What is section 8 Company?
Section 8 Company is govern and regulated by the Indian Companies Act, 2013. It is very easy to register & operate a Section 8 Company in comparison of a Trust and a Society.
As per Companies Act, 2013, a Section 8 company can be formed and run for the following causes or for the promotion of – commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment.
It can be started for any other objects also, provided, profits or income generated to be applied in promoting its objects only.
Minimum Requirement for Section 8 Company
- Minimum 2 Directors and Shareholders
- DSC (Digital Signature Certificate) for all the Directors
- DIN (Director Identification Number) for all the Directors
The directors and shareholders can be same person
Documents Required For Section 8 Company Registration
To be submitted by Directors
Copy of PAN (Mandatory in case of Indian Nationals)
Identity Proof: Voter ID/Aadhaar/Driving License/Passport, any one.
Residence Proof: Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement (not older than 2 months), any one.
For Registered Office Address
Sale Deed/Property Deed in English (in case of owned property) or Rent Agreement along with rent receipts OR
Utility Bill Copy: Latest Bank Statement/Telephone or Mobile Bill/Electricity Bill/ Gas Bill, any one, AND
No-objection Certificate (NOC) from landlord for use of premises,
Procedure for Section 8 Company Registration
Incorporation of Section 8 Company in India is regulated by the Companies Act, 2013 (and the amendments thereof).
Though, the process of incorporation is quite complex and lengthy, but we at BIZINDIGO has made the process simpler and faster by using cutting edge technology. We offer online hassle free process for registration of section 8 company.
SECTION 8 COMPANY INCORPORATION PROCESS FLOW
Submit Enquiry Form:
Once you submit your enquiry for section 8 company registration using our enquiry form. We immediately revert you through email with quote & other details of section 8 company.
Within one hour, our expert team member contact you and discuss the requirement in details. BIZINDIGO team member guide & advice you accordingly. Once you agreed and satisfied, we start documentation process.
Digital Signature Certificate (DSC):
After basic documentation, BIZINDIGO team member start the process for Digital Signature (DSC) application.
Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all the proposed Directors of the Company must be obtained.
Digital Signature is the secure and authentic way that a document can be submitted electronically. Now, almost all filings of e-forms on MCA (Ministry of corporate affairs) portal are required to be digitally signed by applicant or authorised signatory.
For Obtaining Digital Signature (DSC) application to be made, to licensed Certifying Authority (CA) such as e-mudhra along with a self-attested copy of Proof of Identity & Proof of Address of applicant.
Director Identification Number (DIN):
After obtaining Digital Signature of all proposed directors, we apply for Director Identification number (DIN). DIN is pre requirement of e-filing for Company Name approval & incorporation. Without a valid DIN, no person can become a director in any company in India.
For obtaining DIN an application in Form No. DIR-3 to be filed on MCA Portal.
Every DIN Application (DIR -3) should be accompanied by self-attested copy of PAN, Proof of Identity and a Proof of Address and one recent passport size color photograph of the Applicant.
Note: PAN is mandatory for Indian Nationals & Passport for foreign nationals.
All Supporting documents must be attested by a practicing professional viz. practicing Company Secretary, practicing Chartered Accountant or Practicing Cost & Management Accountant.
Name Approval [INC-1]:
After obtaining DIN of all the proposed directors, BIZINDIGO team member proceed further for Name approval of your proposed company.
Name approval to be obtained from the Registrar of Companies (ROC) by submitting duly filled & signed application in Form No.INC-1. We can give maximum six names in order of preference.
The name once approved by the authority is valid for sixty (60) days.
Memorandum of Association (MOA) & Articles of Association (AOA):
After getting name approval, BIZINDIGO team member draft constitutional documents of your proposed Company i.e. MOA and AOA.
Subscription of MOA & AOA
MOA & AOA is required to be signed by each subscriber to the memorandum who will mention his Name, Address, description and occupation, if any, in the presence of at least one witness.
Witness will attest the signature and shall likewise sign and add his Name, Address, description and occupation, if any. Practicing professional (CA, CS or CMA) can be the witness.
Duly subscribed, signed MOA & AOA is required to be filed with RoC along with other supporting documents in eForm INC-12.
License under Section 8 (INC-12)
After MOA & AOA drafting, BIZINDIGO team member prepare application (INC-12) for getting section 8 license from RoC.
Duly subscribed and signed MOA & AOA is required to be filed with RoC along with other supporting documents in eForm INC-12 for issuance of license under section 8 of the Companies Act, 2013.
Application (Form INC-12) for issuance of license under section 8 of the Companies Act, 2013 will be be accompanied by the following documents:
- MOA & AOA of the proposed company,
- List of Promoters & Directors (names, descriptions, addresses & occupation)
- A statement of Assets & liabilities of the company as on date with the application;
- Projected/Estimated Income & expenditure of the proposed company, specifying the source of income and object of expenditure;
- Brief description of work already done, if any,
- Grounds on which the application is made;
- A declaration in prescribed form on non – judicial stamp paper by each applicant
- Payment of prescribed fee
Filing of Incorporation Forms (SPIC-32):
Finally after approval of license under section 8, applicant is required to file SPIC-32 in order to obtain Certificate of Incorporation (COI).
The following forms or supporting documents are required to be filed with the RoC after issuance of license:
- Affidavit from Directors for non-acceptance of deposits
- Form DIR-2 (Consent to act as a Director of a company)
- INC-9 (Director Declaration in the form of Affidavit on non-judicial stamp paper)
- INC-14 (Declaration by professional on non-judicial stamp paper)
- MOA (duly subscribed)
- AOA (duly subscribed)
- Proof of Residence of Directors
- Proof of Identity of Directors
Filing PAN and TAN Application (eForm 49A & 49B)
Now, as per newly introduced form SPIC, PAN and TAN is being applied along with eSPIC-32 only.
After filing of SPIC-32 for Incorporation, Form49A for PAN Application and Form49B for TAN application is generated. Digitally signed forms (49A & 49B) then uploaded on MCA portal in order to obtain the PAN and TAN number of the proposed company.
Certificate of Incorporation:
If, Roc find everything ok or in place, the Certificate of Incorporation is issued along with a unique CIN (Corporate Identification Number) and allotted PAN Number.
Now, COI is being issued along with PAN number mentioned on it. So, there is no need to wait to receive physical PAN card to open a Bank account.
The Company is deemed to be incorporated from the date of the Certificate of Incorporation.
You can Register and start your Section 8 Company in India easily. BIZINDIGO is here to help you. You can take the advantage of our free expert consultancy on NGO setup or NGO Registration in India. We have a dedicate team to cater the requirements of clients who is seeking legal assistance to setup a NGO, non-profit organization in India.