A Section 8 Company is a non-profit organization formed to promote
charitable activities such as education, social welfare, and environmental protection. To legally operate, obtaining a license from the Ministry of Corporate Affairs (MCA) is essential. This guide provides a step-by-step process for Section 8 Company Registration and acquiring the necessary license.
Requirements for Section 8 Company License
Before applying for the license, ensure compliance with the following requirements:
The company's objective must be to promote social welfare, education, arts, or other charitable purposes.
No profit distribution among members is allowed.
The company must have at least two directors (for a private company) or three directors (for a public company).
The proposed name should adhere to MCA guidelines and should not resemble an existing registered entity.
Step-by-Step Process for Obtaining a Section 8 Company License
Step 1: Obtain Digital Signature Certificate (DSC)
The first step is to acquire a Digital Signature Certificate (DSC) for all proposed directors. This is essential for online filing of registration documents.
Step 2: Apply for Director Identification Number (DIN)
Each director must obtain a Director Identification Number (DIN) by filing Form DIR-3 with the MCA.
Step 3: Name Reservation Using RUN Service
Submit an application via the RUN (Reserve Unique Name) service on the MCA portal to reserve a unique company name.
Step 4: File Form INC-12 for License Application
To obtain the license, file Form INC-12 with the following attachments:
Memorandum of Association (MOA) and Articles of Association (AOA)
Declaration in Form INC-14 by a practicing professional
Declaration in Form INC-15 by each director
Estimated statement of income and expenditure for the next three years
Step 5: Receive Section 8 License
Upon approval, the MCA will issue a Section 8 Company License in Form INC-16, allowing the company to operate legally.
Step 6: Register the Company with MCA
Once the license is obtained, complete the incorporation process by filing SPICe+ Form (INC-32) along with:
MOA and AOA
PAN and TAN applications
Address and identity proof of directors
Declaration in Form INC-9
Post-Registration Compliance
After successful registration, a Section 8 Company must comply with:
Annual financial filings with MCA
Regular tax filings with the Income Tax Department
Compliance with CSR and NGO regulations
Conclusion
Acquiring a Section 8 Company License from the MCA is a structured process requiring compliance with legal and financial guidelines. By following the above steps, you can ensure smooth registration and operation of your non-profit organization. Proper adherence to post-registration compliance will help maintain the integrity and legal standing of the company.
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