The Government of India has always supported the upliftment of art, culture, society, and religion through its various schemes and policies.  In regard to this, the Government of India has introduced the concept of Non-Profit Organisations which are also known as Section 8 companies. 

A Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act,1956 is an organization registered with an objective of promoting the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. These are the limited companies established under the Companies Act. There are three main conditions for granting the license is.

Requirements for online registration of Section 8 Company

For registering a Section 8 company, the following criteria must be fulfilled:

Documents Required

  • DSC and DIN of the Directors.
  • Objectives and proposed work of the company.
  • Financial statements like assets and liabilities, the projection for five years, etc.
  • Director’s personal documents.
  • Registered office address documents viz. rental agreement or sale deed in the name of the company, utility bills not older than two months.

Online Section 8 company registration process

  • Reserve Unique Name (RUN) is a form filed for reserving a name for a new company or for changing its existing name. This is the first step of incorporating a section 8 company.
  • A section 8 company shall usually have words like Foundation, Federation, Society, Council, Club, Charities, Institute, Academy, Organization, Federation, Chamber of Commerce, Development, Association, etc.
  • The name so approved shall be valid for 20 days
  • This step is the most crucial in the process of incorporation.
  • The name approval shall be valid at the time of applying for the RD 1 License.
  • RD 1 license is a license granted under section 8 of companies act as they work on a specific objective which is for the upliftment of arts, science, commerce, environment, etc., and the profit they earn shall also be used towards their objectives. All crucial documents like the MoA, AoA, financial statements and other declarations are filed at this stage.
  • The license so approved shall be valid for 30 days.
  • Both the name and the license shall be valid at the time of filing the SPICe form.
  • This is the final stage of incorporating the section 8 company where the documents relating to the registered office like the rental agreements and utility bills are filed along with the RD-1 license and the name approval certificate.

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