What is a Non-Profit Section-8 Company

Section 8 of Companies Act, 2013 (sec 25 of Companies Act, 1956) deals with formation of Company with charitable objectives, a limited liability company established for promoting of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided with no profit is required to be registered. The main instrument for registration is Memorandum Of Association and Articles Of Association.

Registration Process of Section-8 Company

For registration of Non-Profit Company, the application has to be made in prescribed Form No. 1A, with a fee. It is advisable to suggest three other proposed names of the Company. After confirmation of available name, an application in writing is made to the Regional Director of Company Law Board.

* Accompanied with a copy of MOA and AOA duly signed by the promoters with full name, address and occupation.

* A declaration signed by an advocate or a charted accountant that the MOA and AOA has been drawn in accordance with the provision of the Companies Act.

* A statement showing assets and liabilities of the association as on the date of application and of within seven days of that date.

* An estimate of the future annual income and expenditure specifying the source of income and objects of the expenditure.

* A statement specifying briefly the ground on which the application is made.

* A declaration made by each person that he/she is of sound mind, not an undischarged insolvent, not convicted by Court for any offence and does not stand disqualified under Section 203 of Companies Act.

* The applicant shall furnish registrar of Company of the State in which registered office has situated a copy of the application and each of the documents which has been filed before the regional director.

* And from the date of application made to regional director same has to be published in district language paper within one week, and regional director may, after considering the objection, if any, within 30 days from the date of publication of notice in the newspaper, department or Ministry of Corporate Affairs, decide whether license should be given or not.

 A foreign NGO requires permission from RBI to requite staff and a NOC granted from Ministry of External Affairs.

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