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A Section 8 Company is formed to promote charitable or not-for-profit objectives such as: Commerce, art, science, sports, education, research, social welfare, religion, environmental protection, etc. Unlike other companies, profits or income cannot be distributed among members. Instead, it mus
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A Section 8 Company is formed to promote charitable or not-for-profit objectives such as commerce, art, science, sports, education, research, social welfare, religion, or environmental protection.
No, profits or income of a Section 8 Company cannot be distributed among its members. Instead, any profits must be reinvested to achieve the company's stated objectives.
The first step is to obtain a Digital Signature Certificate (DSC) for all proposed directors and subscribers from a licensed certifying authority.
Form INC-12 is used to apply for the license under Section 8.
Key documents include the draft Memorandum of Association (MOA) in INC-13, Articles of Association (AOA), declarations by a professional (INC-14) and subscribers (INC-15), an estimated income and expenditure statement for 3 years, a description of activities, and a list of proposed promoters/directors.
Upon verification, the Registrar of Companies (ROC) issues the Certificate of Incorporation, PAN & TAN, and the Section 8 license (Form INC-16).
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