Checklist Of Section 8 Company Registration And Documents Required

What is Section 8 Company?

A Section 8 company known as a non-profit organization or NGO type of company and it is a type of legal entity which is established under Section 8 of the Companies Act, 2013 in India. The primary objective of a Section 8 company is to promote activities in areas of social welfare, art, education, science, charity, religion and other similar purposes. Unlike for-profit companies, Section 8 companies do not distribute dividends to their members and any surplus generated from their operations is reinvested in the organization's activities.

The income generated by a Section 8 company is primarily utilized to further its objectives and is not distributed as dividends to its members. Any surplus funds are reinvested for the organization's welfare and development.

Documents Required for Section 8 Company Registration

The following is a list of documents generally required for the registration of a Section 8 company in India.

Proof of Identity: PAN card, Aadhaar card, Voter ID or Passport

Address Proof: Copies of address proofs (such as utility bills, bank statements or rental agreement)

Passport-sized Photographs: Recent passport-sized photographs of all the proposed directors and subscribers.

Proof of Registered Office Address: Documentary proof of the registered office address, such as a rent agreement, lease deed, or utility bill. It also be required of No Objection Certificate (NOC) from the owner of the premises.

Step By Step Process of Section 8 Company Formation

Obtain Digital Signature Certificate (DSC): First step to obtain a Digital Signature Certificate for the proposed directors of the company. A DSC is required for filing the online registration application.

Director Identification Number (DIN): Each proposed director must obtain a Director Identification Number from the Ministry of Corporate Affairs (MCA). This unique number is necessary for appointment as a director of any company in India.

Name Reservation: Choose a unique name for your Section 8 company. The name should comply with the naming guidelines prescribed by the MCA. Submit an application for name reservation through the RUN (Reserve Unique Name) service or by filing SPICe+ (Simplified Proforma for Incorporating Company Electronically) form.

Prepare and File Incorporation Documents: Prepare the required documents for incorporation, including the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company's objectives and governing rules. Additionally, prepare other necessary documents, such as the declaration by promoters, affidavit of subscribers, and address proof.

Obtain License: Section 8 companies are required to obtain a license under Section 8 of the Companies Act, 2013. Prepare the license application and submit it to the Registrar of Companies (RoC) along with the incorporation documents.

File for Incorporation: Once you have obtained the name reservation and license, file the incorporation documents online with the MCA. The SPICe+ form is typically used for filing incorporation documents. Attach the necessary documents, pay the prescribed fees, and submit the application.

Verification and Approval: After filing the incorporation documents, the RoC will review the application. If there are any discrepancies or additional information required, they may raise queries or seek clarifications. Respond to any such queries promptly to facilitate the approval process.

Certificate of Incorporation: Once the RoC is satisfied with the application and supporting documents, they will issue the Certificate of Incorporation. This certificate serves as conclusive evidence of the formation of the Section 8 Company.

Apply for PAN and TAN: After receiving the Certificate of Incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company. These are necessary for taxation purposes.

Compliance Requirements: After incorporation, comply with various post-incorporation compliance requirements, such as opening a bank account, obtaining necessary registrations (like Goods and Services Tax or GST), maintaining books of accounts, conducting annual general meetings etc.

It is most important to note that the section 8 company registration process and requirements may vary based on the specific circumstances changes in the relevant laws and regulations. Therefore, it's advisable to consult with a professional or seek legal advice to ensure compliance and accuracy during the registration process.