A Section 8 Company in India is a type of nonprofit organization established under Section 8 of the Companies Act, 2013. These companies are formed for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other charitable purpose. Here is a guide on the registration process for a Section 8 Company:
Step-by-Step Guide for Section 8 Company Registration:
- Preparation:
- Clearly define the objectives and purposes of the Section 8 Company. Plan the structure, operations, and the areas in which the company will work for charitable purposes.
- Minimum Requirements:
- Ensure there are a minimum of two directors and two shareholders. The directors can also be shareholders. At least one director must be a resident of India.
- Digital Signature Certificate (DSC):
- Obtain Digital Signature Certificates (DSC) for all proposed directors. This is a mandatory requirement for filing forms online with the Ministry of Corporate Affairs (MCA).
- Director Identification Number (DIN):
- Apply for Director Identification Numbers (DIN) for all proposed directors. DIN is a unique identification number required for directors, and it needs to be obtained before incorporating the company.
- Name Approval:
- Choose a unique name for the Section 8 Company and apply for name approval through the RUN (Reserve Unique Name) service provided by the MCA. The name should reflect the nature of charitable activities.
- Drafting Memorandum and Articles of Association:
- Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the company. These documents outline the objectives and rules of the company.
- Incorporation Application:
- Prepare the incorporation application in Form INC-32 along with the MOA and AOA. Additionally, file Form INC-33 and Form INC-34, which are e-Memorandum of Association (e-MOA) and e-Articles of Association (e-AOA) respectively.
- License Under Section 8:
- Along with the incorporation documents, apply for a license under Section 8 by filing Form INC-12 with the Registrar of Companies (RoC). This license is crucial for a company to be recognized as a Section 8 Company.
- Approval and Certificate of Incorporation:
- The RoC will review the documents, and if satisfied, issue a Certificate of Incorporation. This certificate serves as conclusive evidence of the establishment of the Section 8 Company.
- PAN and TAN Application:
- Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the Section 8 Company. These are essential for tax-related compliance.
- Opening Bank Account:
- Open a bank account in the name of the Section 8 Company. Provide the Certificate of Incorporation, PAN, and other required documents to the bank.
- GST Registration (if applicable):
- If the annual turnover of the Section 8 Company is expected to exceed the prescribed limit, register for Goods and Services Tax (GST).
- Post-Incorporation Compliance:
- Fulfill post-incorporation compliance, such as conducting the first board meeting, appointing auditors, and maintaining statutory records.
Conclusion:
Congratulations! You have successfully registered your Section 8 Company. Ensure ongoing compliance with regulatory requirements, and consider seeking professional advice for any specific legal or operational considerations.
Please note that the process outlined here is a general guide, and it’s recommended to consult with legal professionals or corporate service providers for precise and updated information based on your unique circumstances and the latest regulatory changes.