How to register a Section 8 Company in India
In India, NGO plays an important role in every field, be it the social sector, economic or environmental issues. Be it providing support to poor and destitute children, providing education to them, or providing health education to marginalized communities, or fighting to save the environment, it helps in the welfare of society in every way. If you also want to bring such a change and have a passion for social welfare and want to establish your own NGO in the form of a Section 8 Company, this process may seem difficult to you, but with the advent of online registration, it has become more streamlined and accessible. Here's a tutorial on how to register a Section 8 Company in India.
What is a Section 8 company?
Before proceeding with the registration process, it is essential to understand what a Section 8 company is. Also known as a not-for-profit organization, Section 8 of the Companies Act, 2013, discusses associations and non-profit organizations. Companies falling under this section are commonly known as ‘Section 8 companies’ and are formed for charitable purposes rather than making profits. Section 8 companies enjoy certain benefits under the Companies Act and are exempted from certain compliances.
Documents Required for Section 8 Company Registration
- Passport-size photographs of All directors and Members
- Copy of PAN Card of All directors and Members
- Copy of AADHAAR CARD or VOTER CARD or DRIVING LICENCE or PASSPORT of All directors and Members
- Copy of the Latest BANK STATEMENT or any UTILITY BILLof All directors and Members
- Copy of Utility Bill and NOC for Registered Office Address proof.
Steps involved in Section 8 Company Registration
Now the process to register a section 8 company is easy in comparison to the older process according to the latest update of MCA the process of section 8 company registration in India is the same as other companies' registration process. The following Steps are involved in Section 8 Company Registration.
Name Reservation:
All the directors and members of a Section 8 company must obtain a digital signature. Digital signatures are required for electronic document filing with MCA during the registration process. Digital signatures can be obtained from certifying agencies authorized by the Controller of Certifying Authorities (CCA).
Obtaining
Digital Signature:
All the directors and members of a Section 8 company must obtain a digital signature. Digital signatures are required for electronic document filing with MCA during the registration process. Digital signatures can be obtained from certifying agencies authorized by the Controller of Certifying Authorities (CCA).
Drafting Memorandum and Articles of Association
The next step is to
draft a MOA ( Memorandum of Association) and (AOA) Articles of Association of
the Section 8 company. The AOA and MOA perform an important role they outline
the objectives of the company, and the rules and regulations governing its
operations. It is noted that the documents must be prepared under the latest
guidelines of MCA and Companies Act, 2013.
Incorporation
Application:
The next step is to apply for incorporation of the company with the MCA. The application should be submitted online through the MCA official portal along with the necessary required documents including a Memorandum of Association, Articles of Association, the documents of directors and member’s identity, proof of address, and other required documents as mandated by MCA. Incorporation application can be filed in SPICE+ Part b form available at mca website.
Approval
Process:
After receiving the application for incorporation, the Registrar of Companies will verify all the documents filed. If all the documents given for the incorporation are found to be correct then ROC will issue the certificate of incorporation and Section 8 Licence.
By following these steps, individuals can register Section 8 Company in India easily and efficiently. It is essential to stay informed about any changes or amendments in the regulatory framework to ensure compliance during and after the registration process. With the right guidance and compliance with legal requirements, interested philanthropists can set up Section 8 companies to make a positive impact on society and contribute to the development of the country.