As per section 8 of companies, an NGO can be registered with no profit motive and In companies...
While incorporating an NGO with broad vision and working for the community at large the section 8 company incorporation is the most proffered mode of NGO Registration in India.
In this article, we will discuss the checklist for the incorporation of section 8 Company.
Section 8 company is a Company incorporated under Section 8 of the Companies Act, 2013 with the charitable objective. The main objectives of Section 8 Companies are to promote fields like arts, science, commerce, sports, education, religion, charity, etc. The profit raised by the Company is used to promote the main objective of the Company.
Section 8 Company is a non-profit organization. The profits or any income shall be used for promoting the main objective of the Company.
Any person or association of persons (including firm) or any existing company (except One Person Company) can apply for Section 8 Company Registration.
All the proposed Directors and promoters shall apply for the Digital Signature Certificate. They should obtain DSC by applying to the Authority.
After obtaining the DSC now, the proposed directors shall apply for Director Identification Number in form DIR-3.
Now, the applicant of the Company shall apply for the proposed Company name approval. The application for name approval shall be filed in Form INC-1. While applying for the name the applicant shall comply with the provisions of the Companies Act and Rules thereon. The approval received from ROC is valid for 60 days from the date of approval.
After approval of Name, now the application for a license shall be prepared. The first step is to draft the MOA and AOA of the proposed company. The MOA shall be in accordance with the objective and provisions of Act. The MOA and AOA shall be signed by the subscriber to MOA.
The final application to grant license shall be made in Form INC-12 with the registrar. The Form shall accompany the following documents:
After satisfaction of an application, the license is being issued in Form INC 16.
After the issue of license now an application for incorporation section 8 company shall be made in Form INC 7:
Now, the application for registered office shall be filed in INC-22 with the registered office address and Rent agreement/lease agreement, Electricity Bill and NOC.