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In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a non-profit company under Section 8 Company of the Companies Act, 2013. A Section 8 Company is the same as Section 25 company under the old Companies Act, 1956. Under the new Companies Act 2013, Section 25 (as per the old Act) has now become Section 8.
A person or an association of persons intending to be registered under Section 8 of the Companies Act, 2013 as a limited company –
a. Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
b. Intends to apply its profits, if any, or other income in promoting its objects; and
c. Intends to prohibit the payment of any dividend to its members
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First step is to acquire DSC (Digital Signature Certificate) & DIN (Directors Identification Number) in a Section 8 company. You can get approval in two days. It is used to digitally sign the e-forms.
The name of Section 8 Company shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, and the like etc.
An article of association of the company is a document which regulates the internal management of the company. Memorandum and articles of association of the company shall be signed by each subscriber to the memorandum who shall mention his name, address, description and occupation.
After approval of name by CRC, one can make an application in Form INC-12 to the Registrar for a license under sub-section (1) of section 8.
After receiving Central Government approval i.e approval of form, one may go ahead with filing of Incorporation Form
A minimum of two people are required to register a section 8 company in India.
An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received
Yes, Section-8 Company can be converted into Private Limited Company if someone wishes to do so in future.
There is no minimum capital requirement for Section 8 Company in India. If you are planning to register a section 8 Company, then you don’t need to worry about the capital required.
Auditor under section 8 company is being appointed within 30 days by the board of Directors and no Central Government approval is required.
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