Section 8 Company is a Company licensed by Central Government under Section 8 of the Companies Act, 2013.
Therefore, Section 8 Company is a company registered for charitable or not-for-profit purposes.
Section 8 Company is similar to a Trust or Society; exception is that a Section 8 Company is registered under the Central Government.
Procedure for Registration of Section 8 Company.
Application for Name Reservation: An application in Form INC-1 is to be made to the Central Registration Centre (previously Registrar of Companies) along with a fee of Rs. 1,000. The name once reserved is valid for 60 days from the date of issue of the name approval letter.
For the Companies under Section 8 of the said Act, the name shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, and the like etc. Every company incorporated as a “Nidhi” shall have the last word ‘Nidhi Limited’ incorporated in it.
Any part of the proposed name should not include the words indicative of a separate type of business constitution or legal person or any connotation thereof.
Name of the Organization: In the application suitable names for the organization in order of preference are to be given for obtaining approval.
Application for License: Once the name approved/made available, there is a further requirement of obtaining a license for a Section 8 Company for which Form RD-1 is to be file in order to obtain license for Company. In Form RD-1, the following attachment are to be made:
- Draft Memorandum of Association (MOA).
- Draft Article of Association (AOA).
- Details application in Form INC-12.
- Declaration by Practicing Chartered Accountant /Practicing Company Secretary /Practicing Cost Accountant in Form INC-14.
- Declaration from each person making application in Form INC-15.
- Estimated Income and Expenditure for next 3 years.
(Please refer Rule 19 of the Companies (Incorporation) Rules, 2014 for detailed information about attachments.)
Grant of license and certificate of incorporation: The Regional Director (RD) after scrutinizing the application will grant the license. After the receipt of the license from the RD following forms need to be submitted with prescribed attachments along with license granted by RD:
(After scrutinizing required documents the ROC issues a Certificate of Incorporation to the organization.)