Section 8 Company Registration: Essential Documents and Steps

Introduction of Section 8 Company registration?

An organization that operates under Section 8 is a non-profit organization that aims to promote commerce, science, art, sports, education, research, social welfare, religion, charity, and environmental protection. Any profits after Section 8 company registration will be used to promote such objects as mentioned above, and no dividends will be paid.

We found that many social workers are confused about what documents are required for the Section 8 company registration through analysis of the market and their issue and sentiments.

So, now that we have discussed the documentation requirements for Section 8 Company Registration, let's move on to the documents we need to complete the process.

Documents required for section 8 company registration:

Below is the step-by-step checklist of documents required for Section 8 Company registration Process:

1.   Section 8 Company Name Reservation: Through MCA Portal www.mca.gov.in, the applicant can reserve the name of the proposed section 8 company for twenty (20) days after receiving the name approval letter. As stated in rule 8(7) of the Companies (Incorporation) Rules, 2014, the name of the company under Section 8 of the Act must include words such as foundation, forum, association, federation, chamber, confederation, council, electoral trust, etc.

It is important to note that no documents are required to reserve a name for a Section 8 company. Aside from SPICe+ Part A, the following documents may be required in certain cases.

• In the case where the applicant's selected company name is similar to an existing one, then there has been no objection provided by an existing company through a Board resolution.
• When the applicant's prefix matches the trademark registered under the Trademark Portal www.ipindia.gov.in with an existing business name, then there is a need for a No Objection Certificate from the Registered Proprietor of that Trademark. NOC shall be in the form of a Board Resolution when Trademark Registration is in the name of the company.

2.   Application for Section 8 company registration: Upon reserving a Name on MCA's Portal, Complete Incorporation Form must be filed within 20 days (can be extended up to 60 days with additional payment) from the date of Name approval through SPICe+ form. Along with this application, the following documents must be attested:

• Documents of Director and Subscriber:
• Photograph of Directors and Subscribers of Proposed Section 8 Company.
• Self-Attested copy of PAN Card (Mandatory)
• Self-Attested copy of Aadhar Card (Optional)
• Self-Attested copy of Identity Proof – Passport OR Driving License OR Voter Id
• Self-Attested copy of Proof of Residential Address – Bank Statement OR Electricity Bill OR Mobile Bill OR Telephone Bill (Should not be older than 2 months)

3.   Section 8 Company's Registered Office Address: The following attachments are mandatory if the applicant specifies the registered office address in the Incorporation Form:

§ Utility Bills: This should be a mobile bill, telephone bill, electric or gas bill, that is not older than two months from the date of incorporation. It should show the name of the owner of the property.

§ NOC: No Objection Certificate is required from the owner of the property if the title is in a different name than Company's. If the property is in the name of a director of the company, an NOC is also required.

§ Office Address Proof: As part of the process, it is necessary to attach a Notarized Rent Agreement or Lease deed to the Rent Receipt if the Property is in the name of a Third Party, e.g., a party other than the Company and it's Directors and Shareholders.

4.   Memorandum and Articles of Association:  Even though the MOA and AOA of the Company are prepared online by completing Forms SPICe+ eMOA and SPICe+ eAOA, respectively. Nevertheless, in case of incorporation of Section 8 companies, the MOA and AOA must be physically attached in Form INC-13.

5.   Employees Specimen Signatures: For the purpose of registering Employees' Provident Fund Organizations, a specimen signature is a document that contains the signatures of the employers of the Section 8 company. Incorporation form AGILE-PRO-S is attached to this document.

6.   Documents for obtaining License: To run its organization, the Section 8 company needs a license from the Registrar of Companies. Along with the incorporation forms, the following documents are required to obtain this license:

• Asset & Liability Statement
• Estimation of future Annual Income and Expenditure
• Applicant's grounds for applying
• Name of the Directors having Interest in other Companies or Firms or Other Associations
• List of Promoters and Directors
• Work Already Done by the Foundation and Work Proposed to Be Done by the Foundation

7.   Additional Relevant Documents: Additionally, the proposed directors or shareholders will be required to sign the following draft documents:

• DIR-2: Consent of Directors to act as the Director of proposed Section 8 Company.
• DIR-8: Intimation by Director with respect to its Directorship and Disqualification, if any.
• Shareholders' and directors' general declarations.

8.   Declaration by the shareholders: INC-9 is an auto-generated web-based form which is filed as a linked form with Incorporation forms. INC-9 is typically filled electronically, but should be prepared physically if the total number of subscribers and/or directors exceeds 20.

9.   Certifications: A Practicing Chartered Accountant, Practicing Company Secretary, Practicing Cost Management Accountant, or Practicing Advocate must certify a company's incorporation form in accordance with the Companies Act, 2013. INC-14 is the prescribed certification form.

10. Declaration by applicants: A Declaration is required to be made that the MOA and AOA comply with all provisions related to section 8 company registration, according to the applicant’s knowledge.

Thank you for reading this write up, if you still have any queries regarding Section 8 company registration then please connect to our team of experts at info@ccoffice.in or call us at 998824211.