Steps to Section 8 Company Registration Procedure

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swaritadvisors

4 min readAug 2, 2019

Nowadays, people are found to be inclining more towards starting an NGO due to several reasons. Among the three types of NGOs, Section 8 Company is one of the most preferred forms of NGO. Hence, if you are willing to start your own section 8 company, then you must first go through the Section 8 Company Registration Procedure. After obtaining the registration, you can successfully start your own NGO.

In this blog, we have mentioned step by step procedure for obtaining Section 8 Company registration in India. So, keep reading-

What is Section 8 Company?

A Section 8 Company is an NGO formed with the sole objective of promoting specific fields or areas with the aim of doing charity. Furthermore, such companies are governed under Section 8 of the Companies Act, 2013.

Since the main motive of Section 8 Companies is to do charitable work, therefore, they have got several tax exemptions such as Income Tax Exemption, etc.

Besides, such companies can’t share the profits they earn among any of its members. All the profits earned are used in the promotion of the company’s object.

In a nutshell, a Section 8 Company is formed with a key purpose of working for social welfare and performing charity works.

What are the main objectives of Section 8 Companies?

The main objectives of Section 8 Company are to function for the welfare of the society that is less talked about. Such society and less talked areas include art, commerce, science, social welfare, research, protection of the environment, sports, religion, etc.

Furthermore, the main aim of starting a Section 8 Company in India is to promote all of the formerly described areas while considering the public interests in mind.

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Documents required for Section 8 Company Registration

If you wish to register your NGO as a Section 8 Company in India, then you must first prepare the following documents:

Copy of a PAN card of all the directors and shareholders of the company;
Copy of the address proof such as the Aadhaar Card, Driving License, Passport, Election ID card, etc.
A recent passport-sized photograph of all the shareholders and directors;
The latest utility bills which must not be older than two months;
Form DIR-2 which is consent to act as a director;
No-objection Certificate (NOC) from the Landlord, if the office premise is on rent;
Rent agreement;
Particulars of the Directorship of the Director, if engaged in any other company or LLP.

Step by Step Section 8 Company Registration Procedure

One can opt for Section 8 Company Registration Procedure, either online or offline. Since the process is a little complicated, therefore, we advise you to hire a professional for the same.

Section 8 Company Registration Procedure is as follows:

Step 1: Obtain the DSC and File DIR-3 Form

The most initial step to incorporating any company in India is to obtain the DSC, i.e., Digital Signature Certificate of the directors of the company. After receiving the DSC, you have to file the DIR-3 Form with the ROC (Registrar of Companies) requesting for DIN (Director Identification Number) for the Directors of the Company.

Step 2: DIN from Registrar of Companies

If ROC finds your documents and the application right and valid, it will allot the DIN to the proposed directors of the company.

Step 3: File RUN for the company name approval

Once you have obtained the DSC and DIN for the company’s proposed directors, you are now required to file RUN (Reserve Unique Name) for the company’s name approval. In this, you can propose only two names.

Depending upon the availability and uniqueness of the name, the ROC will approve one of them.

Step 4: File INC-12 with the ROC

While filing INC-12 for the issuance of the license for company incorporation, you need to attach the following documents:

MOA (Memorandum of Association) of the company;
AOA (Articles of Association) of the company;
Declaration from the Chartered Accountant in practice;
Declaration from every applicant filing the application;
Assessed income and expenditure for the three consecutive years.

Step 5: Grant of License

After scrutinizing the application carefully, the ROC will approve the form and will issue the license for company incorporation under Section 8 in INC-16 Form.

Step 6: Filing SPICe form INC-32 with the ROC

After you have got the section 8 company registration, you have to file SPICe INC-32 with the ROC for the incorporation process. Besides, you are supposed to attach the following documents:

KYC of all the Directors;
An affidavit from every subscriber and director of the company;
Declaration related to the deposits;
Consent letter from all the directors;
DIR-2 Form with an identity as well as address proof of the directors;
Utility bills not older than two months;
Other documents, as required.

Once the ROC is satisfied with all the criteria, he will issue the Certificate of Incorporation (COI) along with a Corporate Identity Number (CIN).

In case you have any queries regarding the Section 8 Company registration procedure in India, then contact Swarit Advisors.