Under the Companies Act (“Act”), 1956, Section 25 company can be defined as a limited company formed for the sole object of “promoting commerce, art, science, religion, charity, or any other useful object, and intends to apply its profits, if any, or other income in promoting its objects, and to prohibit the payment of any dividend to its members.”
In India, there are following 3 legal forms exist for an NGO or Non-Profit Organizations:
Advantages
1. Application of DSC and DIN
All the prospective directors have to apply for Digital signature and DIN. Digital signature is an online signature used for filing and DIN refer to Directors Identification number issued by MCA. If the directors already have DSC and DIN, then this step can be skipped.
2. Application for Name approval
Upto 4 Name Option Can be Given in 1 Run (Reserve Unique Name) name Approval request. Provide maximum 4 names in order of priority for your company name for approval of MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business.
3. Licence and Approval of other authorities
After the company’s name is approved, one needs to apply for a Section 8 Company licence from the MCA. The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers. he Registrar of Companies may require the applicant to furnish the approval or concurrence of any department, regulatory body, appropriate authority, or Ministry of the Central or State Government(s) in relation to the work to be done. Thereafter, the Registrar of Companies may, at its discretion, grant the licence with or without certain conditions.
4. Company Registration Form & MOA & AOA Submission
Once name is approved and license is obtained, one need to get the Memorandum & Articles of Association approved. But the object of the company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscription statement.
5. Get incorporation certificate
Once MOA and AOA are approved, company incorporation certificate is issued by MCA on submission of all the relevant documents to the ROC. On arrival of the company incorporation certificate, your company is registered. Incorporation certification is a proof that company has been created. It also includes your CIN number.
6. Apply for PAN, TAN and Bank account
The moment company is incorporated, application for PAN & TAN needs to be made with NSDL. Then you need to apply for PAN and TAN. . Post this, for opening of bank account submit the Incorporation certificate, MOA, AOA and PAN along with resolution with a bank to open your bank account.
Section 8 COMPANY REGISTRATION package includes
Yes, you need a minimum of two directors for a section 8 company registration.
Yes, it is necessary to have a non-profit motive to incorporate a Section 8 company.
No, Company registration is a fully online process. As all documents are filed electronically, you would not need to be physically present at all. You would need to send us scanned copies of all the required documents & forms.
