What are the eligibility criteria for registration of a nonprofit Section 8 Company?
Any Individual person or Company or combination of both company and individual people can register section 8 company also called NGO in India form anywhere across the country just because it is MCA has made online registration of company having these objects:-
- To promote Art, Commerce, Science, or other cultural activities do not intend to profit business.
- To apply all its income and fund to the betterment of society and promotion of its core objective.
- A registered company will not issue any kind of dividend or profit to its member.
Who is authorized to issue a license to operate as nonprofit Section 8 Companies?
The central government has delegated power to Registrars of Companies (ROC) to issue license and registration for the company having an object of the nonprofit organization.
What are the steps we have to take for registration of a Section 8 Company?
An online application to be made to Central Reservation Center (CRC) for registration of nonprofit organization as section 8 company in form Spice + and must be accompanied, inter alia, by the following documents as the attachment of e-form Spice + Part A and B:-
Memorandum of Association (MOA) and Articles of association (AOA) in draft containing details of all subscribers including their name, address, occultation and must be signed by signed by the subscriber of MOA and AOA including a photograph of subscribers.
Form No INC-14 as a declaration by a professional person such as CA, CS, Advocate involve in company formation that the all details filed in memorandum and articles of association is as per provision of section 8 of Companies Act, 2013 and Companies Incorporation Rules 2014.
Drat annual income and expenditure account of next coming 3 consecutive financial year and must specify the source of fund and details of expenditure to be undertaken by the company after incorporation
Form no INC-15 as a declaration by subscribers of the memorandum of association and its proposed first director on physical stamp paper of concern state and it should be notarized as per provision of Indian notary act.
Form No INC-9 Form no INC-15 as a declaration by subscribers of the memorandum of association and its proposed first director on physical stamp paper of concern state and it should be notarized as per provision of Indian notary act.
Can a corporation with unlimited liabilities be registered as a nonprofit Section 8 Company?
No, as per provision of section 8 of Indian Companies Act, 2013 and Companies Incorporation rules, 2014 allows only a company with limited liability can be registered as a nonprofit company under section 8.
Is it mandatory as per companies act that Section 8 Companies are to be incorporated as a limited liability corporation with share capital?
A company under section 8 can be registered as a company having liability limited or limited by guarantee having share capital or not having a share capital.
Is it compulsory that the at the end of the name of the nonprofit Company shall include the words like – Foundation, forum, association, federation, chamber, confederation, Council, etc.?.
Since the company registered under section 8 is the nonprofit organization it must add in the end of its name word like Foundation, forum, association, federation, chamber, confederation, Council, etc.? Instead of private limited or public limited as per provision of Companies Incorporation Rules, 2014.
Is there any relaxation government fee in the incorporation of a Section 8 Company?
Indian Stamp Act, 1899 governed and control stamp duty and fee on the MOA & AOA so while registering a section 8 company you need to pay fee as stamp duty.
Whether a foreign Body Corporate can be incorporate and become a member of nonprofit Section 8 Company in India?
Indian Companies Act, 2013 defines the Foreign Company and its means and includes company or body corporate incorporated outside India which has:-
- Has a place of business establishment in India and
- Conduct any business transaction in India.
Now since a corporation registered outside India for doing nonprofit business activities, which have opened a branch/liaison office in India, not fall under the definition of foreign company. So we can say that foreign Body Corporate can be incorporate a Section 8 Company in India.
Can a Private Limited Company be incorporated as One Person Company (OPC) can be converted or incorporated as section 8 company?
No Indian Companies Act, 2013 barred an OPC to be registered as section 8 companies or to convert into a nonprofit Section 8 Company.