Section 8 is a company that is operated only for social welfare without the motive of earning income or profit. Section-8 company is also known as a NGO under the companies act, 2013, the process to Section 8 company registration is provided under the act. The section-8 company can be registered in two forms either in a form of private limited or as a public limited, if a section-8 company is registered as private limited then a minimum of 2 people is required and if it is registered as a public limited then a minimum of 7 people are required in which 3 will be the director. There is no capital requirement to start the registration process of an NGO under the companies act anyone can register it with any minimum amount. But after registration, there are certain compliances which the company has to follow every year like auditor appointment, ITR filing, KYC other annual compliance which has to do every year. There is one main restriction on the section-8 company that is the company cannot share the profit or income among the members of the company, they can use income only for the achievement of the objective of the company. The company can do social activities like development of society, protection of earth and environment and living organisms, in the field of art, commerce, education, literature, sports etc. without the motive of earning profit.
Documents Required For Section 8 Company Registration
Director/Shareholder
- PAN card
- Passport size photo
- Identity proof (Passport/Driving License/Voter Id)
- Address proof (Bank statement/Electricity bill/Mobile bill/Telephone bill), anyone but should be latest
Registered Office Address Proof
- Sale deed or House tax receipt if owned or rent agreement if rented
- Utility bill (Electricity bill/Gas bill/Mobile bill/Telephone bill), anyone and should not be older than 2 months.
- NOC from the owner of the property.
Procedure Of Register Section 8 Company
- Name Application: The application for name reservation shall be filed to the registrar before filing the registration application. The section 8 company gets the exemption from using the word “private limited” or “limited” instead of this word they can use the words like “foundation”, “association”, “organisation”, etc. once the name is reserved it is valid for 20 days only.
- DIN & DSC: The DIN is allotted to the directors of the company, earlier no person can register a company without having DIN but now it can be applied along with the registration application. DSC is a digital signature that is used to sign the form digitally in this no physical signature is required. No company can be registered without signing with the DSC.
- Drafting of documents: After name approval, the documents will be drafted and signed by the directors of the company, the documents like MOA, AOA, INC-14, INC-15, DIR-2, etc, these documents shall contain all the information of the company and declaration by the director and professional.
- Final form prepared and submitted: The final form shall be prepared and filed with all the relevant information, all the required documents shall be attached in the form and submitted to the registrar for approval. If the registrar is satisfied with the application then he will approve it and issue a certificate of incorporation and license for social welfare activity.
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