Where it is proved to the satisfaction of the Central Government (Power delegated to ROC) that a person or an association of persons proposed to be registered under this Act as a limited company—
The Central Government may, by license issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word ― “Limited”, or as the case may be, the words ― “Private Limited”, and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.
Some important points in Section 8 of The Companies Act, 2013:
Minimum requirements of a Section 8 Company
Maximum requirements of a Section 8 Company
Following self-attested documents of the Proposed Director and members is required:
1. The company should be formed for the promotion of a social cause. It may be charity, education, industry, sport, etc.
2. Income and profits should be used for this purpose or object only.
3. No dividend should be paid to its members.
A Section 8 Company is at first to be registered in the same manner as a limited company. After this registration procedure, it needs to obtain a license from the Central Government to be registered under this Section. This license is provided on the basis of the Company’s objectives which have been mentioned in MOA and AOA and some other criteria.
Below documents are needed for the registration of the Section 8 Company:
Yes. A Section 8 company can be converted into a private limited company after taking approval from ROC.
The annual compliances which must be met by a Section 8 Company are the same as other normal companies registered under the Companies Act. Conducting 2 Board Meetings, at least, in a year. Mandatory audit of the Books of Accounts. Annual returns, along with other e-filing forms such as MGT-7, AOC-4, etc. Income tax returns. Additional compliances to fulfil the registration u/s12AA, 80G, of the Income Tax Act, applicable to donations, etc.
Foreign donations are allowed only when FCRA (Foreign Contribution Regulation Act 1976) registration has been done. FCRA license can only be applied after 3-years from the date of registration. However, if some really urgent foreign donations are necessary, then you may apply for a prior permission from the commissioner.
Yes. Section 8 Companies can invest in other companies to meet the objectives of its formation.
Yes, it can form a subsidiary company which is normal and plans to make profits.
Section 8 Company will be governed by the Board of Directors, similar to a Private Limited Company. During the process of incorporation, the DSC is obtained for the proposed directors. The following documents must be submitted. 1. PAN or Aadhaar card. 2. Drivers License/ Passport/ Election ID/ Government Issued ID. After submitting these documents, the applicant must complete an OTP and eKYC procedure to obtain a DSC in their name.
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.