Section- 8 Company is a Non-Profit Organization registered under Companies Act, 2013, subject to the approval of the Central Government, formed with the purpose of serving following objectives:-
The promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
Intention to apply its profits, if any, or other income in promoting its objects.
Intention to prohibit the payment of any dividend to its members.
Under the new process of RUN(Reserve Unique Name) Web Service, proposed name of the Company is applied by the promoter by paying requisite fee. The applied name will be processed by the Central Registration Centre(CRC) and thereafter approval or rejection will communicated to the applicant. To avoid rejection of the name the name should be as per the guidelines provided under Companies (Incorporation) Rules, 2014. Once the name is approved the said name will be available for 20 days within which the incorporation process has to be completed.
Inclusion of words "Private Limited" or "Limited" is not allowed for section-8 company. Further as per Rule-8(7) of The Companies (Incorporation) Rules, 2014 "For the Companies under section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc."
Digital Signatures of the all the members and any one Directors (if members and directors are different) needs to be obtained for the incorporation of the Company. For obtaining the Digital Signatures following KYC details are required:
Identity Proof, i.e., PAN Card (Self Attested).
Address Proof, i.e., Aadhaar Card (Self Attested)
Once the name has been approved, next step is to apply for the license of the Company to be obtained from the Central Government for which following documents and information are required:
DIN (Director Identification Number) of the Directors of the proposed Company. DIN is a unique number which is allotted to each person who are desirous of becoming the directors of a company. In case the applicants are not possessing the DIN, the said DIN will be applied along with the incorporation of the Company.
Details of the all the Directors and Members of the proposed company.
Main object of the proposed Company for which it is being incorporated.
Details of the Registered Office of the Company along with the proofs of the Registered Office.
Once the name has been approved by the department, the next step is to obtain the license from the Central Government. For the purpose of obtaining license from the Central Government an application is required to be filled in Form INC-12 along with the fee as provided in the Companies (Registration offices and fees) Rules, 2014 to the concerned Registrar of Companies, Ministry of Corporate Affairs.
The application is accompanied with following attachments:
The Memorandum of Association of the proposed company prepared under Form No. INC-13.
The Articles of Association of the proposed company.
the declaration in Form No.INC.14 by an Advocate, a Chartered Accountant, Cost Accountant or Company Secretary in practice, that the draft memorandum and articles of association have been drawn up in conformity with the provisions of section 8 and rules made thereunder and that all the requirements of the Act and the rules made thereunder relating to registration of the company under section 8 and matters incidental or supplemental thereto have been complied with;
d. an estimate of the future annual income and expenditure of the company for next three years, specifying the sources of the income and the objects of the expenditure.
e. the declaration by each of the persons making the application in Form No. INC.15.
IF the Registrar if satisfied with the application filled by the applicant, a license in Form No. INC-16 shall be issued by the concerned Registrar of Companies, after which the process of incorporation can be inititated.
Once the license has been granted from the Central Govermnent, the Incorporation of the Company through Simplified Proforma for Incorporating Company electronically (SPICEe) forms shall be completed by filling SPICe - INC-32 along with eMOA (INC-33) and eAOA (INC-34) with the concerned Registrar of Companies, Ministry of Corporate Affairs by paying the requisite Stamp duty for the registration.
Once the entire process is completed and the concerned department is satisfied by the all the compliances, The Certificate of Incorporation will be issue by the concerned Registrar of Companies along with the PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of the Company, after which the proposed company will become a separate legal entity to transact the business in its own name.