Registration

Definition

The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.

Features of section 8 company:

A Section 8 company comprises of the following distinct features:

1. Charitable objectives: Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.
2. No minimum share capital: Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital.
3. Limited liability: Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
4. Government license: Such companies can function only if they have the Central Government’s license. The Government can revoke this license as well.
5. Privileges: Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
6. Firms as members: Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.

Procedure and Steps Taken for Register a Private Limited Company:

• Step 1 - Application DSC (Digital Signature Certificate)
• Step 2 - Search for the Company Name availability.
• Step 3 - Application for the Name availability
• Step 4 - Application for license under section 8
• Step 5 - Drafting of Memorandum of Association (MOA) & Articles of Association (AOA)
• Step 6 - Filing of e-forms with RoC (Registrar of Companies)
• Step 7 - Payment of RoC Fees & Stamp Duty
• Step 8 - Verification of documents / forms by RoC
• Step 9 - Issue of Certificate of Incorporation by RoC

The following documents must be submitted in order to get a company registered as a Nidhi Company:

1. Ownership documents or a rent/lease agreement has to be provided as a proof of address of the registered place of business
2. No Objection Certificate (NOC) duly signed by the landlord or the owner of the place where the business is registered
3. Identity proofs
4. Address proofs of the members of the company
5. Photographs of the members of the company
6. Digital Signature Certificate (DSC) of the company
7. Copies of PAN cards of the members
8. Certified copy of the updated Memorandum of Association (MoA) of the company
9. Certified copy of the updated Articles of Association (AoA) of the company