{"id":51297,"date":"2022-12-14T14:34:27","date_gmt":"2022-12-14T09:04:27","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=51297"},"modified":"2022-12-14T14:34:28","modified_gmt":"2022-12-14T09:04:28","slug":"procedure-for-incorporation-of-a-section-8-company","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/","title":{"rendered":"Procedure for Incorporation of a Section 8 Company- A Definitive Guide"},"content":{"rendered":"\n<p>A Section 8\ncompany is a not-for-profit or charitable entity which is formed for charitable\nobjects like \u201c<em>promotion of commerce, social welfare, religion, charity, art,\nscience, sports, education, research, protection of environment or any other\nsuch object\u201d. <\/em>For a company to be incorporated under Section 8, it should\nbe created keeping any of the above objects in mind and is required to obtain a\nlicense from the Central Government to operate as a Section 8 company. The\nCompany shall be registered as a limited company and is prohibited from using\nits profits or income for any other purpose than promoting the objects of the\nCompany or re-investing the money in the Company. Section 8 also prohibits the\nCompany from paying dividends to its members. The incorporation of a Section 8\ncompany is governed by the MCA or the Ministry of Corporate Affairs under the Companies\nAct, 2013 &amp; the Companies (Incorporation) Rules, 2014. Scroll down to check\nmore about Incorporation of a Section 8\nCompany<strong>.<\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Benefits_of_Being_Incorporated_as_a_Section_8_Company\" >Benefits of Being Incorporated as a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Eligibility_Criteria_for_the_Incorporation_of_a_Section_8_Company\" >Eligibility Criteria for the Incorporation of a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Other_Requirements_for_the_Incorporation_of_a_Section_8_Company\" >Other Requirements for the Incorporation of a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Necessary_Documents_Required_Incorporation_of_a_Section_8_Company\" >Necessary Documents Required Incorporation of a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Forms_Required_to_be_Filed_Incorporation_of_a_Section_8_Company\" >Forms Required to\nbe Filed Incorporation\nof a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Procedure_for_Incorporation_of_a_Section_8_Company\" >Procedure for Incorporation of a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/procedure-for-incorporation-of-a-section-8-company\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Being_Incorporated_as_a_Section_8_Company\"><\/span>Benefits of Being Incorporated as a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 8 Companies receive many advantages and\nexemptions by virtue of being incorporated as such because these companies are\nestablished to further charitable objects. Moreover, it is required to follow\nmany compliances before and after obtaining registration as per the Ministry of\nCorporate Affairs norms so that it gains certain credibility among various\nstakeholders, donors, and government departments. Some of the benefits of Incorporation\nof a Section 8 company are as follows:<\/p>\n\n\n\n<ul><li><strong>Limited\nLiability<\/strong><\/li><\/ul>\n\n\n\n<p>The Company&#8217;s members have limited liability to\nthe limit of the value of shares held by them in the Company. In other words,\nthe legal responsibility of the members to repay the debts of the Company is\nlimited, as is the case of an LLP. <\/p>\n\n\n\n<ul><li><strong>Distinct\nand Separate Legal Identity<\/strong><\/li><\/ul>\n\n\n\n<p>The Company has a legal existence which is\nseparate from its members and thus has perpetual existence until the Company is\nwound up. The Company can hold assets, incur debts, and be held liable\notherwise in its own name. The Company is an artificial person and can exist\nregardless of the exit of its founding members.<\/p>\n\n\n\n<ul><li><strong>Exemptions\nFrom Tax<\/strong><\/li><\/ul>\n\n\n\n<p>The Central Government has provided certain tax\nexemptions to Section 8 companies to encourage the furtherance of charitable\nobjects. A Section 8 company enjoys many benefits under the Income Tax Act\n1961. Once the Company obtains registration under Section 12 AA of the Income\nTax Act, it becomes eligible to apply for tax exemptions. The donors of a\nSection 8 company are also eligible to obtain tax exemptions under Section 80G\nof the Income Tax Act.<\/p>\n\n\n\n<ul><li><strong>Stamp\nDuty<\/strong><\/li><\/ul>\n\n\n\n<p>The Central Government of India has exempted\nSection 8 companies from paying stamp duties applicable on various documents\nduring the process of incorporation.<\/p>\n\n\n\n<ul><li><strong>Paid-Up\nCapital Requirement<\/strong><\/li><\/ul>\n\n\n\n<p>There is no minimum paid-up capital requirement\nto incorporate a Section 8 Company. Since the capital structure is alterable,\nit can easily be modified to bring in the capital when required through various\nmodes like donations and subscriptions by the public and company members.<\/p>\n\n\n\n<ul><li><strong>Name\nof the Company<\/strong><\/li><\/ul>\n\n\n\n<p>A <strong><a class=\"text-primary\" href=\"https:\/\/corpbiz.io\/section-8-company-registration\">Section 8 company<\/a><\/strong> is\nexempted from attaching suffixes like \u2018private limited\u2019 or \u2018limited\u2019 to its\nname. However, the name must have any of the terms like inter alia,\nconfederation, federation, association, chambers, forum, foundation, and\ncouncil.<\/p>\n\n\n\n<ul><li><strong>Other\nExemptions Under the Companies Act<\/strong><\/li><\/ul>\n\n\n\n<p>Section 8 companies are provided many benefits\nand exemptions under the Companies Act, 2013 pertaining to Annual General\nMeetings, board meetings, the appointment of company secretaries, the notice\nperiod for general meetings, audit and remuneration committee, the appointment\nof directors and disclosure of interest by such directors. Mentioned below are\ncertain relaxations provided to Section 8 companies:<\/p>\n\n\n\n<ol><li>The\ncompanies registered as Section 8 companies are required to give a notice of 14\ndays to call for a general meeting instead of 21 days.<\/li><li>The\ndirectors can decide the date, time and place of the annual general meeting of\nthe Company.<\/li><li>A\nSection 8 company is exempted from recording meetings of the annual general\nmeetings, general meetings, or resolutions unless it is expressly provided for\nin AoA or the Articles of Association of the Company.<\/li><li>A\nSection 8 company is required to conduct a minimum of one meeting in six months\ninstead of the standard requirement of 4 meetings per year. Also, such\ncompanies are exempted from the requirement of a time gap of 120 days between\ntwo meetings.<\/li><li>Section\n8 Companies are only required to send copies of financial statements and other\nnecessary documents to be attached under the law to their trustees and members\n14 days before the meeting instead of 21 days.<\/li><li>Section\n8 companies can appoint any number of directors and are not required to pass a\nspecial resolution to appoint more than 15 directors.<\/li><li>Section\n8 companies do not need to adhere to provisions under the Companies Act\nrelating to independent directors and, inter alia, their appointment, the\nminimum number required, term of office, and retirement.<\/li><li>Section\n8 company directors are exempted from the requirement of giving consent to hold\nthe office of a director to the Registrar of Companies within 30 days of such\nappointment.<\/li><li>Section\n8 companies are exempted from the requirements of establishing a nomination and\nremuneration committee as per Section 178 of the Companies Act, 2013.<\/li><li>Section\n8 companies are not required to pass resolutions at board meetings to invest\nfunds, borrow money, provide security for a loan, provide guarantees, or grant\nloans.<\/li><li>A\ndirector of Section 8 companies is only required to disclose her interest if\nthe related party transactions are more than Rupees One Lakh.<\/li><li>A\nSection 8 company is required to maintain a separate register of contracts\npertaining to related party transactions for directors only when the\ntransaction amount exceeds Rupees One Lakh.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_the_Incorporation_of_a_Section_8_Company\"><\/span>Eligibility Criteria for the Incorporation of a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 8 of the Companies Act, 2013 allows any person\nor association of persons to be incorporated as a company for charitable\npersons. Hence, a Hindu undivided family or an individual are eligible to be\nincorporated as a Section 8 company. However, Section 8 mentions specific other\nprerequisites to be eligible to obtain a license from the Central Government.\nTo be incorporated as a Section 8 company, it is imperative that the Company:<\/p>\n\n\n\n<ul><li>Is\nformed for any of the charitable objects mentioned under Section 8 of the\nCompanies Act, 2013, namely, for the advancement of science, art, sports,\ncommerce, religion, protection of the environment, research, charity, social\nwelfare, education, and other similar objects.<\/li><li>Must\nuse the profits and income arising from the Company only for the advancement of\nthe objects of the Company.<\/li><li>Must\nnot distribute dividends to its shareholders.<\/li><li>Must\nnot provide any remuneration to its members, founders, and promoters.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Requirements_for_the_Incorporation_of_a_Section_8_Company\"><\/span>Other Requirements for the Incorporation of a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are specific other requirements mentioned under\nthe Companies Act that an entity must meet for the Incorporation of a Section 8\nCompany:<\/p>\n\n\n\n<ul><li><strong>Purpose\nof the Company<\/strong><\/li><\/ul>\n\n\n\n<p>To be incorporated as a Section 8 company, it\nshould be formed for promoting or advancement of charitable objects, and the income\nor profits arising from the Company must only be used in the furtherance of the\nnot-for-profit objects for which it was formed for. The directors or members\nmust not receive any share of the profits made by the Company.<\/p>\n\n\n\n<ul><li><strong>Management\nof the Company<\/strong><\/li><\/ul>\n\n\n\n<p>After the Company obtains a license under\nSection 8, it must be run by the directors as per the Articles of Association\nand Memorandum of Association drafted in accordance with the requirements of\nSection 8 objectives. Without the consent of the Central Government, the\nMemorandum of Association &amp; Articles of Association of a Section 8 company\ncannot be altered.<\/p>\n\n\n\n<ul><li><strong>Minimum\nDirectors Requirements<\/strong><\/li><\/ul>\n\n\n\n<p>To be incorporated as a Section 8 company, it is\nrequired that at least one of the directors has been a resident of&nbsp; India for at least 182 days. Generally, if a\ncompany is being incorporated as a private limited company, it must have a\nminimum of two directors. If the Company is being incorporated as a private\nlimited company, it must have a minimum of three directors. There can only be a\nmaximum of 200 members for a private limited company, while a public limited\ncompany can have any number of members. There is no requirement for a maximum\nor minimum number of directors in a Section 8 Company.<\/p>\n\n\n\n<ul><li><strong>Acquire\na DSC or Digital Signature Certificate<\/strong><\/li><\/ul>\n\n\n\n<p>All the proposed directors of the Company must\nobtain digital signature certificates or DSC from any certification agency\napproved by the CCA or the Controller of Certification Agencies. A DSC is\nimperative to sign documents on the Ministry of Corporate Affairs website electronically.\nA DSC is valid for two years from the date of issuance of the certificate and\nis required to sign and attest documents digitally. All authorized signatories\nwho are required to affix their signatures on the documents for the process of\nregistration on the MCA website must obtain DSCs.<\/p>\n\n\n\n<ul><li><strong>Directors\nto Acquire DIN or Director Identification Number<\/strong><\/li><\/ul>\n\n\n\n<p>Every proposed director of a company must obtain\na director identification number from the MCA website by applying for the same\nunder from DIR-3, which is filed under with the SPICe+ Form. The DIR 3 form\nmust be signed by a chartered accountant and must be submitted with documents which\nprovide proof as to the identity and address of the director for whom the DIN\nis being applied.<\/p>\n\n\n\n<ul><li><strong>Company\nName<\/strong><\/li><\/ul>\n\n\n\n<p>A Section 8 company is exempted from placing the\nsuffixes &#8216;Limited\u2019 or \u2018Private Limited\u2019 after its name as is required by other\npublic limited or private limited companies. However, it is necessary to have any\nof the words like, inter alia, council, federation, chambers, forum,\nassociation, foundation.<\/p>\n\n\n\n<ul><li><strong>Paid-Up\nCapital Requirement<\/strong><\/li><\/ul>\n\n\n\n<p>There is no minimum paid-up capital requirement for\nthe incorporation of a Section 8 company. The Company&#8217;s capital structure can\nbe changed at any point in time when there is a requirement for funds. It can\nbe generated by various modes like public donations and subscriptions by the\nCompany&#8217;s members.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Necessary_Documents_Required_Incorporation_of_a_Section_8_Company\"><\/span>Necessary Documents Required Incorporation of a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incorporating a company requires meeting many legal\nand regulatory compliances and requires submitting various documents with the\nRegistrar of Companies for assessment based on which a certificate of\nincorporation is granted. It is imperative to be aware of and remain prepared\nwith the list of such necessary documents. The documents which are necessary to\napply for incorporation of a Section 8 company are as follows:<\/p>\n\n\n\n<ul><li>Draft\nArticles of Association and Memorandum of Association which have been signed by\nthe members and witnesses<\/li><li>The\nexpected annual income of the Company and expenditure for a period of next\nthree years, along with the purpose of the expenditure and the income source<\/li><li>Identity\nproof and residence proof of the subscribers and directors like Passport,\nAadhar card, PAN card, driver\u2019s license<\/li><li>Utility\nbills of the registered office of the Company if any<\/li><li>Registered\ndocument showing that the registered office is in the Company&#8217;s name.<\/li><li>Proof\nof ownership of the registered office, if any.<\/li><li>If\nthe registered office is a rented property, then a duly notarized lease deed\nand a No Objection Certificate obtained from the landlord of the rented\nproperty<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Forms_Required_to_be_Filed_Incorporation_of_a_Section_8_Company\"><\/span>Forms Required to\nbe Filed Incorporation\nof a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many essential forms which are required to\nbe filled and uploaded on the MCA website to register a Section 8 company. Mentioned\nbelow are some of the forms which must be filled for the Incorporation of a\nSection 8 Company:<\/p>\n\n\n\n<ul><li><strong>Form\nINC 12<\/strong><\/li><\/ul>\n\n\n\n<p>Before applying for the certificate of incorporation,\none needs to obtain a license from the Central Government to operate as a\nSection 8 company. This license is used for under form INC 12 and is required\nto be submitted along with the draft memorandum of association as provided\nunder INC 13 and articles of association, amongst other attachments. The pages\nof the articles of association and the memorandum of association are to be signed\nwith the details of subscribers pertaining to their name, description, address,\nand occupation and must be signed with at least one witness present, as is\nprovided under Rule 13 of the Companies (Incorporation) Rules, 2014. These\nfollowing documents are required to be attached with Form INC 12:<\/p>\n\n\n\n<ol><li>Draft\narticles of association and memorandum of association<\/li><li>Form\nINC 14 declaration duly signed by an advocate or a chartered accountant or a\ncompany secretary that the draft memorandum of association and articles of\nassociations have been drafted in accordance with the requirements mentioned\nunder Section 8.<\/li><li>Form\nINC 15 declaration, duly signed, on a stamp paper of prescribed value, by the directors\nthat the draft memorandum of association and articles of associations have been\ndrafted in accordance with the requirements mentioned under Section 8.<\/li><li>Form\nINC 9 declarations by shareholders and directors that they are not guilty of\nany malfeasance or offence<\/li><li>The\nexpected annual income of the Company and expenditure for a period of next\nthree years, along with the purpose of the expenditure and the income source.<\/li><li>A\nlist of promoters and proposed directors of the Company.<\/li><\/ol>\n\n\n\n<ul><li><strong>SPICEe+\nForm along with AGILE PRO Form<\/strong><\/li><\/ul>\n\n\n\n<p>To apply to reserve the name of a company and to apply\nto incorporate a company, one needs to file SPICe+ Form. The Part A of the\nSPICe+ Form is to reserve the name of the Company. The applicant must provide alternative\nnames which are distinct and unique and must include terms like inter alia,\nconfederation, federation, association, chambers, forum, foundation, and\ncouncil. The applicants can also use the Reserve Unique Name feature on the MCA\nwebsite to reserve a name for the Company. The name can also use the facility\nto search names of the companies which already exist to avoid coming up with\nsimilar or identical names. <\/p>\n\n\n\n<p>The Part B of the SPICe+ Form is to be filled to apply\nfor the incorporation of a Section 8 company. The details of the address of the\nregistered office, the capital structure of the Company, details of first\ndirectors and subscribers, and details of jurisdiction for acquiring PAN or TAN\nwould be filled in here. There are some crucial documents that are required to\nbe attached to Part B of the SPICe+ Form:<\/p>\n\n\n\n<ol><li>Address\nproof and identity proof of all the shareholders subscribed to the memorandum\nof association and directors of the Company, along with the passport-sized\nphotographs of the directors. <\/li><li>Articles\nof association and memorandum of association, which have been signed by the\nsubscribers of the Company as per Companies (Incorporation) Rules, 2014.<\/li><li>Details\nof the registered office or, if the registered office has yet to be established,\nthen the address of correspondence being used till then.<\/li><li>Declarations\nmade under Form INC 14 and form INC 15, which have been duly attested by a\nchartered accountant<\/li><li>Declarations\nmade under Form INC 9 that the directors and shareholders have committed no malfeasance\nor offence.<\/li><li>The\nexpected annual income of the Company and expenditure for a period of the next\nthree years, along with the purpose of the expenditure and the income source.<\/li><li>Utility\nbills of the registered office space<\/li><li>Proof\nof ownership of the registered office, if any.<\/li><li>If\nthe registered office is a rented property, then a duly notarized lease deed\nand a No Objection Certificate are obtained from the landlord of the rented\nproperty.<\/li><\/ol>\n\n\n\n<p>The other forms which are to be filled are SPICe+ MOA\nand SPICEe+ AOA forms. Form INC 35, or the AGILE PRO form, is filled after the\nSPICe+ Form for professional tax registration, registration with Employees\u2019 Provident\nFund Organization and registration with Employees\u2019 State Insurance Corporation,\nthe opening of a bank account and Goods and Services Tax Identification Number\nregistration. <\/p>\n\n\n\n<ul><li><strong>Form\nINC 22<\/strong><\/li><\/ul>\n\n\n\n<p>This Form is filed to provide a notice as to the\ninformation of the Company&#8217;s registered office. This application is to be filed\nwithin 30 days of the date of receipt of the certificate of incorporation.<\/p>\n\n\n\n<ul><li><strong>Form\nDIR 2<\/strong><\/li><\/ul>\n\n\n\n<p>The application under Form-DIR 2 is filed to get\nthe consent of the proposed Directors to the incorporation of a Section 8\ncompany. <\/p>\n\n\n\n<ul><li><strong>Form\nDIR 3<\/strong><\/li><\/ul>\n\n\n\n<p>This Form is filled out to apply for the director\nidentification number. The application must be made to the ROC.<\/p>\n\n\n\n<ul><li><strong>Form\nDIR 12<\/strong><\/li><\/ul>\n\n\n\n<p>This Form is filed to appoint directors is filed. Once\nthe directors are appointed, this application must be filed within 30 days of\nsuch appointment. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Incorporation_of_a_Section_8_Company\"><\/span>Procedure for Incorporation of a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Following is\nthe step by step procedure for Incorporation of a Section 8 Company:<\/strong><\/p>\n\n\n\n<ul><li><strong>Register on the MCA Website<\/strong><\/li><\/ul>\n\n\n\n<p>The applicant is required to create a business\nuser account on the MCA portal to fill in and submit the necessary forms and\napplications.<\/p>\n\n\n\n<ul><li><strong>Obtain\nDigital Signature Certificate and Director Identification Number<\/strong><\/li><\/ul>\n\n\n\n<p>The shareholders and proposed directors, and authorized\nsignatories of the Company must acquire digital signature certificates from a\nController of Certification Agencies approved agency which has been granted\napproval by the Controller of Certification Agencies. Directors and authorized\nsignatories must have DSCs sign documents on MCA digitally. Once the digital\nsignature certificates have been granted, the directors are required to file\nfor a director identification number by filling out Form DIR 3. After the\nRegistrar of Companies has approved DIR 3 application, the unique DIN shall be\ngranted to the applicant.<\/p>\n\n\n\n<ul><li><strong>Obtain\nSection 8 License Under Form INC-12 <\/strong><\/li><\/ul>\n\n\n\n<p>It is imperative to obtain a license to operate\nas a Section 8 company before applying for the certificate of incorporation.\nThe application must be made to the Registrar of Companies with the documents\nattached as mentioned above. The Form and the documents attached by the applicant\nshall be reviewed by the Registrar of Companies, and she shall grant the\nlicense once the documents are approved. The license to operate as a Section 8\ncompany shall be granted under Form INC 16.<\/p>\n\n\n\n<ul><li><strong>Reserve\nCompany Name<\/strong><\/li><\/ul>\n\n\n\n<p>After the Section 8 license has been granted,\nfill in Part A of the SPICe+ Form to reserve the name of the Company along with\nthe prescribed fees and documents. The SPICe+ Form can be found under the tab\nof MCA services on the website. <\/p>\n\n\n\n<ul><li><strong>Fill\nPart B of the SPICe+ Form<\/strong><\/li><\/ul>\n\n\n\n<p>After reserving the company name, one has to\nfill in Part A &amp; Part B of the SPICe+ Form, which is found on the MCA\nwebsite under the MCA Services tab, with the necessary documents as mentioned\nabove. The articles of association as provided under form INC-34 and the memorandum\nof association as provided under form INC-33 must be filled in accordance with Schedule\n1. The directors and other authorized signatories are required to upload their\nDSC on the portal to sign the documents digitally. <\/p>\n\n\n\n<p>The applicant is to then fill in the SPICe+ AOA,\nSPICe+ MOA and AGILE PRO Forms to register for professional tax, GSTIN, the\nopening of a bank account, EPFO, and ESIC. Most of the details in the MOA and\nAOA forms shall be auto-filled based on the information submitted in the\nprevious steps. Once the applicant has paid the prescribed, the documents and\nthe forms shall be submitted.<\/p>\n\n\n\n<p>A scrutiny check must be conducted by the\napplicant before finally submitting the documents and the forms.<\/p>\n\n\n\n<ul><li><strong>Review\nby the Registrar<\/strong><\/li><\/ul>\n\n\n\n<p>The documents and the forms submitted shall be\nassessed by the ROC to check for any lacunae in the application.<\/p>\n\n\n\n<ul><li><strong>Grant\nof Incorporation Certificate: <\/strong><\/li><\/ul>\n\n\n\n<p>Once the registrar has scrutinized the applications\nand the documents attached and is satisfied with the completeness and\nsufficiency, an incorporation certificate will be issued with a CIN or\nCorporate Identification Number. The Incorporation Certificate shall be proof\nof the Company&#8217;s registration as a Section 8 company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Section 8 company is regulated &amp; controlled by the MCA or the Ministry of Corporate Affairs under <strong>the Companies Act, 2013<\/strong><sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/companies-act\/companies-act-2013.html\"><strong>[1]<\/strong><\/a><\/sup> &amp; Companies (Incorporation) Rules, 2014. It is established for charitable purposes and receives nimiety benefits and relaxations from the government to advance social welfare. The Procedure for Incorporation of a Section 8 company involves adhering to many legal and regulatory compliances. It is imperative that any person looking to incorporate a Section 8 company must remain abreast with the compliances and processes involved and be prepared with all the documents and other requisite requirements to facilitate smooth registration of one&#8217;s Company and to avoid any penalties due to non-compliance.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read Our Article<\/b>: <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-section-8-company-registration\/\">A Closer look at Benefits of Section 8 Company Registration<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Section 8 company is a not-for-profit or charitable entity which is formed for charitable objects like \u201cpromotion of commerce, social welfare, religion, charity, art, science, sports, education, research, protection of environment or any other such object\u201d. For a company to be incorporated under Section 8, it should be created keeping any of the above [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":51298,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2955],"acf":{"service_id":"1"},"authorName":"Sherin Jose","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/11\/MicrosoftTeams-image-4-e1668575330329.jpg","authorDescription":"Sherin has degrees in Law and English Literature from the University of Delhi. She is adept at legal research and writing and enjoys discussing and analysing important legal developments. Her primary interests lie in Corporate, FinTech and IPR Law and she is always on the lookout for exploring new developments in the area. She is an avid reader who loves classics and contemporary fiction. She likes to travel, bake and obsess over cat videos in her free time.","postViews":5519,"readingTime":12,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51297"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=51297"}],"version-history":[{"count":2,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51297\/revisions"}],"predecessor-version":[{"id":51300,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/51297\/revisions\/51300"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/51298"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=51297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=51297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=51297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}