Registeration Of Section 8 Foundation Company:-
Section 8 companies in India are established with the objective of promoting arts, science, commerce, charity, education, protection of the environment, sports, research, social welfare, religion, or other similar objectives. These companies operate as non-profit entities where any profits or income generated are applied solely towards promoting the objectives of the company and no dividend is paid to its members. Here is a step-by-step guide on how to register a Section 8 Foundation Company.
Understanding Section 8 Companies:-
Section 8 of the Companies Act, 2013, governs the formation of non-profit organizations in India. These companies are similar to trusts or societies but are registered under the Ministry of Corporate Affairs (MCA) and are subject to more stringent compliance and regulatory requirements.
Step-by-Step Guidelines:-
1. Obtain Digital Signature Certificate (DSC)
- Purpose: A Digital Signature Certificate is required for signing the electronic forms on the MCA portal.
- Process: Apply for DSC from government-recognized certifying authorities.
2. Apply for Director Identification Number (DIN)
- Purpose: Every director of the proposed Section 8 company must have a DIN.
- Process: Apply for DIN by submitting the DIN application form along with identity proof and address proof of the directors.
3. Name Approval
- Purpose: Secure a unique name for your Section 8 company.
- Process:
- RUN (Reserve Unique Name) Form: Submit the RUN form on the MCA portal.
- Name Reservation: Choose names carefully, ensuring they are unique and not similar to existing companies. The name should reflect the objectives of the company.
4. Draft Memorandum of Association (MOA) and Articles of Association (AOA)
- MOA: Outlines the main objectives of the company.
- AOA: Defines the rules and regulations for the company’s internal management.
- Special Clauses: Include specific clauses as required for Section 8 companies, emphasizing the non-profit nature and application of income towards the company’s objectives.
5. Submit Required Documents
- MOA and AOA: Signed copies of the Memorandum and Articles of Association.
- Declaration: Form INC-15, a declaration that the draft MOA and AOA comply with Section 8 requirements.
- Identity Proof and Address Proof: Of all directors and subscribers.
- Address Proof of Registered Office: Utility bill, rent agreement, or property ownership documents.
- Photographs: Passport-sized photographs of directors and subscribers.
6. Application Review and Approval
- Review by ROC: The Registrar of Companies (ROC) reviews the application and documents.
- Grant of License: Upon satisfaction, the ROC grants a license under Section 8, and the Certificate of Incorporation is issued.
7. Post-Incorporation Compliance
- PAN and TAN: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
- Bank Account: Open a bank account in the name of the Section 8 company.
- Statutory Compliances: Maintain regular compliance with the provisions of the Companies Act, 2013, including annual filings, board meetings, and financial audits.
Benefits of Registering a Section 8 Company
- Legal Recognition: Provides a formal structure and legal recognition.
- Tax Benefits: Eligible for various tax exemptions under the Income Tax Act.
- Credibility: Enhanced credibility and trust among donors, beneficiaries, and other stakeholders.
- Funding Opportunities: Eligible to receive grants and donations from government and international bodies.
- Perpetual Existence: Continues to exist even if there are changes in management or membership.
Conclusion
Registering a Section 8 company is a significant step towards formalizing your non-profit activities and gaining legal recognition. By following the outlined steps and ensuring compliance with the regulatory requirements, you can establish a Section 8 foundation company to promote your chosen objectives effectively. Embrace this opportunity to contribute to social welfare, education, healthcare, and other noble causes, making a meaningful impact on society.
