Section 8 Company Registration – An Overview
A Section 8 Company Registration under the Companies Act, 2013 – When a person or an association of persons runs a business with objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object and intends to apply its profits or other income in promoting its objects and intends to prohibit the payment of any dividend to its members, may apply for the license with the Central Government and registers its Company with the registrar of Companies.
The company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies.
Eligibility to Apply for Section 8 Company Registration
An individual or an association of individuals are eligible to be registered as Section 8 Company if it meets the following objectives:
- The intention of the Company is to promote science, commerce, education, art, sports, research, religion, charity, social welfare, protection of the environment or alike other objectives;
- The intention of the Company is to invest all the profits (if any) or any other income generated after incorporation in the promotion of such objects only;
- The company does not intend to pay any dividend to its members.
The objectives have to be confirmed to the satisfaction of the Central Government.
What documents are required for registering NGO/ Section 8 Company?
- Passport size photograph of all Directors
- Identity Proof – PAN Card, voter ID, Aadhaar card of the proposed Directors of the Company
- Address Proof – Driving license or Aadhar card and Bank statement or utility bill not older than two months.
- Place of business – Ownership documents/ lease deed, Electricity Bill, bank statement or telephone bill not older than two months. The No Objection from the owner to use the premises as a registered office.
- Proof of evidence of any utility services like gas, electricity, telephone stating the address of the premises bearing the name of the owner or document not older than two months.