Overview of Section 8 Company Registration in India.
Section 8 Company, also known as a Non-Profit Company, is a distinct legal entity established under the Companies Act of 2013 in India. Unlike traditional companies formed for profit-making purposes, Section 8 Companies are primarily formed to promote social welfare, charity, education, science, religion, art, environmental protection, or any other socially beneficial objective. The name “Section 8” refers to the section of the Companies Act that governs such organizations.
How Register Helps in the Section 8 Company Registration Process?
Step 1: Conceptualization and Objectives
Before delving into the bureaucratic intricacies of registration, it’s crucial to articulate a clear vision and mission for the Section 8 Company. Define the social cause or objective the company intends to serve, whether it’s education, healthcare, environmental sustainability, or any other charitable purpose. This foundational step ensures alignment with the provisions of the Companies Act, 2013, which mandates that Section 8 companies operate for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object.
Step 2: Board of Directors and Name Reservation
Selecting the right individuals to serve on the board of directors is paramount. They should share the passion for the chosen cause and possess the requisite skills to steer the organization effectively. Additionally, conduct a thorough search to ensure the chosen name complies with the naming guidelines specified by the Registrar of Companies (RoC). Reserve the name to prevent others from using it while the registration process is underway.
Step 3: Memorandum and Articles of Association
Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) in accordance with the format prescribed under the Companies Act, 2013. These documents delineate the company’s objectives, rules, and regulations governing its operations. Ensure that the MoA includes clauses specifying the charitable objects pursued by the Section 8 Company, and the AoA outlines the internal governance structure.