Non- Profit Institutions are registered as a company in Section 8 of the Companies Act, 2013. It aims to promote science, art, education, social welfare, charity, research, sports, religion, and protection of environment provided it envisages using its profits and any other income in popularizing its products. It also inhibits any dividend being paid to the members of the trust.
A Section 8 company is almost identical to a Society or a Trust. It is registered with the Central Ministry of Corporate Affairs but Society and Trust are registered with the State Government. A company registered with section 8 has quite a lot of advantages like better legal standing; improved recognition and the donors, as well as stakeholders, consider it much more reliable as compared to a Trust or a Society.
Director Identification Number is a number which is issued by the registrar of companies. It is a unique number assigned to the designated director of the company for identification. According to the Companies Act, 2013 unless you have a DIN issued, you are not authorized to hold the office of the Director.
To get DIN allotted, you have to send an application to Registrar Of Companies (ROC) along with a photo, Address proof and ID which is attested by CS, CMA or CA.
Digital Signature of Director is analogous to a physical certificate in digital format. The application of Section 8 company registration is submitted and filled online with Director’s Digital signature; therefore, it is important to get the Digital Signature of all the promoters issued.
To get the DSC issued, identity, Address proof along with a photo has to be attached to the signed forms.
3. Name Approval:-
Name of each company has to be unique and should not be similar to any other registered company.
To register the name, you have to fill an application in form number INC1 with ROC of Ministry of Corporate Affairs for the approval of name. You can write six names in the order of your preference. The name of the company must include the following suffixes- Forum, Federation, Confederation, Electoral Trust, Foundation, Association, Chambers, and Council.
4. AOA and MOA:-
MOA (memorandum of association) and AOA (Article of Association) are drafted after name approval and along with other documents included in INC-12 (issuance of license), filed with the ROC. The subscriber would have to sign and mention his name, description, address and occupation in the subscription pages of AOA and MOA. The presence of one witness is mandatory who will attest the signature.
5. INC-12 (License application):–
For license issuance, file INC-12 along with the list of attachments given below-
1. MOA (INC-13)
3. INC-15 and declaration of each subscriber to MOA on a stamp paper of Rs.100/-
4. The estimated budget of the company for the next three years including the income and the expenditure which is duly signed by the promoters.
5. List of the directors and promoters.
6. Handwritten MOA and AOA by the witness and the subscriber
1. Form INC-7 (incorporation of the company application) is to be filed along with the list of following attachments:-
2. MOA and AOA
3. Declaration in INC-8
4. An affidavit from each director and subscriber in INC-9 which certifies that they are not guilty of misfeasance
5. Address and IDs of directors and subscribers to MOA
6. Correspondence address until the registered office is decided upon.
7. Form INC 22 (situation of registered office) along with the following list of attachments:-
8. Proof of ownership (rent agreement/ lease deed)
9. Electricity bill which should not be older than 2 months
10. NOC from the landlord or the owner
11. DIR-12 (appointment of Directors)
12. Consent to be directors i.e., DIR-2
13. An affidavit from the Directors for not accepting deposits
14. INC-9 which is the declaration of each subscriber to MOA.