Steps and Documents Required for Registration and Incorporation of Section 8 Companies

Steps and Documents Required for Registration and Incorporation of Section 8 Companies:

Features of a Section 8 Company:

1. Charitable Objectives: Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.
2. Limited Liability: Members of the Company have liability limited to the amount unpaid on the shares held by them.
3. Government License: They can function only when they get Government License under Section 8 of the Companies Act.
4. Firms can become members: Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.
5. Name: They need not include the words “Limited” or “Private Limited” in their names.
   

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Upto 6 probable names along with details of the activities proposed to be undertaken by the Company.

• Filing of Incorporation forms on MCA portal: The following documents are required to be file with RoC for obtaining license and Certificate of Incorporation
• Draft Memorandum and Articles of Association
• Declaration form in INC-14 by an Advocate, a Company Secretary, Chartered Accountant or Cost Accountant in practice.
• Estimate future Annual Income and Expenditure of the company for next three years, specifying the sources of income and objects of the expenditure.
• Declaration by each member making an application in form no. INC-15.
• Declaration in form no. INC-8
• An Affidavit from each subscriber of MOA in form no. INC-9
• PAN card, Proof of identity and Proof of residence for each subscriber (is not required if there is valid DIN)
• Board Resolution authorising to subscribe to MOA in case of corporate subscriber.

Note: Digital Signature certificate is required for any one of the subscribers.

Restrictions on a Section 8 Company:

• Members of the company cannot get any dividend.
• Officers and directors do not get benefits and allowances.
• Can only use the profits for furthering charitable aims and objectives.
• Amendment of memorandum and articles requires Central Government’s permission.
• The license is revocable on several grounds.