SECTION 8 COMPANY

What is Section 8 Company ?

A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives.

Procedure for incorporation of a Section 8 company

Step 1 –  Obtain a DSC of the proposed Directors of the Section 8 Company. Once a DSC is received, file Form DIR-3 with the ROC for getting a DIN.

Documents to attach for DIN application:

Proof of Identity and Address Proof.

Step 2 – Once the DIR-3 is approved, the ROC will allot a DIN to the proposed directors.

Step 3 – File Form INC-1 with the ROC for applying for a company name. A total of 6 names can be applied for in order of preference, out of which one would be allotted, based on availability.

Step 4 – After approval, file Form INC-12 with the ROC to apply for a licence for the Section 8 company.

Documents to attach with INC-12:

a. Draft MOA as per Form INC-13

b. Draft AOA

c. Declaration as per Form INC-14 (Declaration from Practicing Chartered Accountant)

d. Declaration as per Form INC-15 (Declaration from each person making application )

e. Estimated Income & Expenditure for next 3 years.

The subscription pages of the Memorandum and Articles of Association of the company shall be signed by every subscriber along with mentioning his name, address, and occupation, in the presence of at least one witness who shall attest the signature and sign and add his name, address, and occupation.

Step 5 – Once the Form is approved, a license under section 8 will be issued in Form INC-16.

Step 6 – After obtaining the license, file SPICE Form 32 with the ROC for incorporation along with the following attachments:

a. An affidavit from all the directors’ cum subscribers –  INC-9

b. Declaration of deposits

c. KYC of all the Directors

d. Form DIR-2 with its attachments i.e PAN Card and address proof of the directors

e. Consent letter of all the directors

f. Interest in other entities of the directors

g. Utility bill as a proof of Office address

h. NOC in case the premises are leased/rented

i. Draft MOA and AOA

If the ROC is satisfied with the forms submitted, he issues a Certificate of Incorporation along with a unique Company Identification Number (CIN).

Forms Required for Registration

Name of the form Purpose of the Form
INC 1 Name Approval
INC 7 Application for Incorporation of Company
INC 8 Declaration
INC 9 Affidavit from each director and subscriber
INC 12 Application for License
INC 13 Memorandum of Association
INC 14 Declaration from a practicing Chartered Accountant
INC 15 Declaration from each person making the application
INC 16 License to incorporate as Section 8 company
INC 22 Situation of Registered Office
DIR 2 Consent of Directors
DIR 3 Application to ROC to get DIN
DIR 12 Appointment of Directors