Section 8 Company Registration in India: A Detailed Guide
Introduction
In India, Section 8 Companies, as per the Companies Act, 2013, are entities formed for charitable or not-for-profit purposes. These companies are distinct from other organizations because they aim to promote social welfare, education, art, and various other public-oriented objectives. In this blog, we will provide an in-depth guide to Section 8 Company registration, covering the objects of registration, types, minimum director and member requirements, registered office requirements, and the complete registration procedure.
Section 8 Company Registration
A Section 8 Company is a unique form of organization that prioritizes social welfare and public service over profits. It is often established to promote various causes, including education, healthcare, environment, and more. Let’s explore the key aspects of Section 8 Company registration:
- Objects of Registration of Section 8 Company:
- The primary objective of a Section 8 Company is to promote charitable, educational, scientific, religious, or other public-oriented/social welfare activities.
- These companies reinvest their income for the attainment of their objectives, rather than distributing profits among members.
- Types of Section 8 Company:
- Section 8 Companies can be registered as companies limited by shares or companies limited by guarantee, depending on the specific objectives and requirements.
- Minimum Director Requirements of Section 8 Company:
- A Section 8 Company must have a minimum of two directors.
- At least one director must be an Indian resident.
- Minimum Member Requirement of Section 8 Company:
- For private Section 8 Companies, the minimum number of members required is two.
- For public Section 8 Companies, the minimum number of members required is seven.
- Registered Office Requirement of Section 8 Company:
- A Section 8 Company must have a registered office within India.
- This registered office serves as the official address for all communications.
Complete Procedure of Registration of Section 8 Company
Now, let’s outline the comprehensive procedure for registering a Section 8 Company in India:
- Name Reservation: Choose a unique name for your Section 8 Company and ensure it reflects the company’s objectives. Check the name’s availability on the Ministry of Corporate Affairs (MCA) website.
- Digital Signature Certificate (DSC): Obtain Digital Signature Certificates (DSC) for all proposed directors and members. DSCs are necessary for online filing.
- Drafting Memorandum and Articles of Association: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), outlining the objectives, rules, and regulations of your Section 8 Company.
- Filing Documents: Submit the necessary documents, including MOA, AOA, and other required forms, to the Registrar of Companies (ROC).
- Payment of Fees: Pay the prescribed registration fees and stamp duty.
- Certificate of Incorporation: Once the ROC processes and approves your application, you will receive a Certificate of Incorporation, confirming the successful registration of your Section 8 Company.
Conclusion
In conclusion, Section 8 Company registration in India is a noble endeavor that aims to serve public welfare rather than profit generation. With specific objectives, minimum director and member requirements, and a commitment to reinvest income for societal good, Section 8 Companies play a crucial role in advancing social causes. To explore Section 8 Company registration further, consider consulting legal professionals or experts who specialize in this unique form of organization.