To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.
In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.
The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.
A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.
An individual or group of individuals can apply for Section 8 Company Registration if it holds the below-mentioned intentions. The objectives have to be confirmed to the satisfaction of the Central Government.
In India, a Trust is controlled by the trustees mentioned in the Trust Deed. Section 8 Company will be governed by the Board of Directors, similar to a Private Limited Company.
During the process of incorporation, the DSC is obtained for the proposed directors. The following documents must be submitted.
After submitting these documents, the applicant must complete an OTP and eKYC procedure to obtain a DSC in their name.
In the first step, we obtain the DSC for the proposed Directors of the Section 8 Company.
After obtaining the DSC, file form DIR 3 with the ROC for getting a Director Identification Numbers.
After the DIR 3 is approved, the ROC will allot the Director Identification Number to the proposed Director.
To apply for a company name, it is necessary to file Form INC 1 with ROC.
After the approval to apply for a license for the Section 8 Company, it is necessary to File Form INC 12
After the approval, a license under section 8 will be issued in Form INC 16.
File SPICe Form 32 with the ROC for incorporation along with the affidavits, declarations, KYC, consent letter, draft MOA, and AOA after he obtains the license
If the ROC is satisfied with the submitted forms, the ROC is issued a Certificate of incorporation.