In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a private limited non profit company under Section 8 Company under the Companies Act, 2013. A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per the new Companies Act 2013, Section 25 (as per the old act) has now become Section 8.
As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”.
To register a section 8 company in India, the process is similar to the incorporation of other companies, The applicant looking to start a section 8 company is required to file RUN for name availability. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form INC-12 is to be filed in order to obtain a license for such company. After obtaining license number, applicant can proceed further to incorporate a company by filing e form SPICe.
Once Licence obtain by Proposed Company, one has to file SPICe form for Incorporation of Company in a general manner in which Licence will be attached.
Time limit for obtaining Licence and uploading SPICe will be 20 days from the allocation of name by CRC.
After Filing form SPICe if proper authority thinks fit may allot Certificate of Incorporation.