**Section 8 Company**
**Introduction**
A Section 8 Company is a company licensed under Section 8 of the Companies Act, 2013 (previously known as Section 25 Company under the Companies Act, 1956). The primary objective of a Section 8 Company is to promote commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or any other such objective. The key characteristic of a Section 8 Company is that any profits or income generated must be used solely to promote the company’s objectives, and no dividends are distributed to its members.
Therefore, a Section 8 Company is registered for charitable or not-for-profit purposes.
**Procedure for Registration of a Section 8 Company:**
1. **Minimum Requirement:** At least two people are required to register a Section 8 Company.
2. **Obtaining Digital Signature Certificate (DSC):** All proposed directors who do not already have a Director Identification Number (DIN) must obtain a DSC.
3. **Name Approval:** The proposed company name must be approved and reserved through the concerned Registrar of Companies.
4. **Filing Form INC-12:** After the name is approved, Form INC-12 must be filed pursuant to Section 8(1) of the Act and Rule 19 of the Company (Incorporation) Rules, 2014.
**Attachments to Form INC-12:**
– **Draft Memorandum of Association (MOA):** The draft MOA of the proposed company.
– **Draft Articles of Association (AOA):** The draft AOA of the proposed company.
– **Declaration in Form INC-14:** Declaration by a practicing Chartered Accountant, Company Secretary, or Cost Accountant.
– **Declaration in Form INC-15:** Declaration from each person making the application.
– **Estimated Income and Expenditure:** A projection of income and expenditure for the next three years.
**List of Documents Required:**
– **Identity Proof:** Copy of the Permanent Account Number (PAN) for all directors/promoters (mandatory).
– **Address Proof:** Copy of a valid Passport, Driving License, Aadhaar, Telephone Bill, or Electricity Bill (not older than two months).
– **Photographs:** Latest passport-size photographs of all directors/promoters.
– **Rent Agreement or Leave & Licence Agreement:** If the registered office premises are rented.
– **Utility Bills:** Utility bills of the proposed registered office.
– **Consent to Act as Director:** Form DIR-2 signed by the directors.