Section 8 company is a type of non-profit organization that is registered under Section 8 of the Companies Act, 2013 in India. These companies are formed for the purpose of promoting commerce, art, science, education, research, social welfare, religion, charity, and any other such useful objects that can be beneficial for society. Section 8 companies have various advantages such as tax exemptions, perpetual succession, and limited liability. In this article, we will discuss the process of Section 8 company registration in India.
Step 1: Obtain Digital Signature Certificate (DSC)
The first step in the registration process is to obtain a Digital Signature Certificate (DSC) for the proposed directors of the company. DSC is an electronic signature that is used to sign documents digitally. It is required for filing the online application for registration of the company. DSC can be obtained from any government-approved agency.
Step 2: Obtain Director Identification Number (DIN)
The next step is to obtain the Director Identification Number (DIN) for the proposed directors of the company. DIN is a unique identification number that is assigned to each director of a company. It is required for filing the online application for registration of the company. DIN can be obtained by filing an online application with the Ministry of Corporate Affairs (MCA).
Step 3: Name Approval
The next step is to obtain the approval of the proposed name of the company. The name of the company should be unique and should not be similar to the name of any existing company. The name of the company should also reflect the objectives of the company. The proposed name can be submitted to the MCA for approval through the RUN (Reserve Unique Name) facility. The name approval process usually takes 1-2 days.
Step 4: Memorandum of Association (MOA) and Articles of Association (AOA)
The next step is to draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the company. MOA and AOA are the two important documents that are required for the registration of the company. MOA specifies the objectives of the company and the activities that the company intends to undertake. AOA specifies the rules and regulations that govern the internal management of the company. MOA and AOA should be drafted in accordance with the provisions of the Companies Act, 2013.
Step 5: Filing of SPICe Form
The next step is to file the online application for the registration of the company through the Simplified Proforma for Incorporating Company Electronically (SPICe) form. The SPICe form should be filed along with the following documents:
- MOA and AOA of the company
- Name approval letter
- Affidavit and declaration by the proposed directors
- Proof of registered office address of the company
- PAN and TAN of the company
- Certificate of incorporation of the company (if any)
- Proof of identity and address of the proposed directors
Step 6: Issuance of Certificate of Incorporation
After the submission of the online application and the verification of the documents, the Registrar of Companies (ROC) will issue the Certificate of Incorporation to the company. The Certificate of Incorporation is a legal document that confirms the registration of the company under the Companies Act, 2013. The Certificate of Incorporation contains the following details:
- Name of the company
- Date of incorporation
- Corporate Identification Number (CIN)
- Registered office address
- Objectives of the company
- The authorized capital of the company
The registration of a Section 8 company in India involves various steps and procedures. It is important to follow the legal requirements and procedures for Section 8 company registration to ensure that the company is registered correctly and legally. Section 8 companies are a popular choice for non-profit organizations in India, as they offer several benefits, including tax exemptions, limited liability, and perpetual succession
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