A company is referred as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has the motive of promoting arts, commerce, education, charity, protection of the environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives. Introduction A Section 8 company under the Companies Act, 2013, or a Section 25 Company as per the Companies Act,1956 is an organization registered to promote the fine arts, science, literature, or knowledge sharing for a purposeful matter or charity. These are the limited companies instituted under the Companies Act. The Government allows these companies an exclusive license under Section 8 Companies Act. There are three main conditions for granting the license is: The company should establish a charitable purpose. Income and profits should be used for these objects. The company should not pay any dividend to its members. Get Legal Advice from best Lawyer
Applications would be filed with the ROC to acquire DIN and DSC for the Directors. Duly signed. You need to apply for DSC, first. Once it has been received, Form DIR-3 is to be filed with the ROC to obtain their DIN. A passport-sized photograph, attested ID Proof and Address proof of the Director are to be attached to these applications.
Suggest your preferences after conducting Company Name Search. After selecting the 3 options, apply for a unique name for your Company. Name availability has to be seen in the “Reserve Unique Name” or RUN facility. 2 names is to be proposed, initially, in Form INC-1. If rejected 1 resubmission is allowed. Both times in separate formats.
Apply for the Section 8 License with the Central Govt. The format to be used is Form INC-12. It is to be filed with MoA in Form INC-13. AoA, Declaration of CA/CS/CWA in Form INC-14, Declaration by Directors in Form INC-15, Name Approval Letter, and a 3-year estimate of future income & expenses. And apply for the COI. COI or Certificate of Incorporation is proof that the company has been created.
As soon as all the processes have been completed and your Section 8 Company has been registered, then apply for your PAN and TAN. It is filed with Forms INC-7, 8, 10, 9, 22, DIR-2, and 12 with the ROC, along with the required documents.
The applicable fee, vary from company to company, depending on the structure and other factors.incorporation of a Section 8 Company takes around 20-30 days. The time taken for registration will depend on the submission of relevant documents by the client and the speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents before starting the registration process.
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