Section 8

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Paawan surana (Querist)
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26 April 2018 Can a section 8 company start the business of providing gold loans or finance?
Can anyone share the latest procedure to register a section 8 company(Along with filed form if possible)

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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27 April 2018 No. Main object of Section 8 Company should ensure promotion of Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, Protection of Environment or any such other object.

Paawan surana

Paawan surana (Querist)
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27 April 2018 okay, thank you very much, sir can you guide me with the procedure for the same?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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23 July 2025 You're welcome! Here's a clear breakdown of your two questions regarding **Section 8 Company**:

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## ✅ **1. Can a Section 8 Company Start a Business of Providing Gold Loans or Finance?**

**No**, a Section 8 Company **cannot** start the business of **gold loans, financing, lending, or any profit-making financial services.**

### 📌 Reason:

As per **Section 8 of the Companies Act, 2013**, the company must be formed **for promoting charitable or not-for-profit objectives**, such as:

* Education
* Art and culture
* Science and research
* Social welfare
* Environment protection
* Sports, etc.

### ❌ Restrictions:

* It **cannot distribute profits or dividends** to members.
* Activities like **lending money, gold loans, finance** are **commercial** in nature and **fall outside the permitted scope** of Section 8.

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## ✅ **2. Procedure for Registering a Section 8 Company (Latest as per MCA guidelines):**

### 📄 **Step-by-Step Guide (As of July 2025):**

### **Step 1: Name Approval (SPICe+ Part A)**

* File SPICe+ Part A on MCA portal for **name reservation**.
* Add the words like **"Foundation", "Society", "Association", "Forum", "Council", "Chamber", "Organization", etc.** in the name.
* File with **object clause** clearly stating charitable purpose.

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### **Step 2: Prepare Documents**

* **MOA (INC-13)** and **AOA (INC-31 or standard format)**
* **Declaration in Form INC-14** (by a professional – CA/CS/CMA)
* **Declaration in Form INC-15** (by all promoters)
* **Affidavit & consent in Form DIR-2** (from all directors)
* **Proof of registered office** (rent agreement, electricity bill, etc.)
* **Identity and address proof** of directors

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### **Step 3: File SPICe+ Part B and Linked Forms**

* **SPICe+ Part B** (Application for incorporation)
* Linked forms:

* **AGILE-PRO-S** (for GST, EPFO, ESIC, Profession Tax, Bank a/c)
* **e-MOA (INC-33)** & **e-AOA (INC-34)**
* **Form INC-9** (Declaration by subscribers)
* Attach **Board resolution**, **NOC from owner**, and all above documents

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### **Step 4: Apply for License (Form INC-12 is now integrated in SPICe+)**

* Earlier separate, now **license application under Section 8** is **part of SPICe+**.
* License is issued in **Form INC-16** after scrutiny by ROC.

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### **Step 5: Certificate of Incorporation**

* If everything is in order, **ROC issues the COI with Section 8 license**.

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### 🧾 Sample Object Clause for MOA (Charitable Purpose Example):

> "To promote education and literacy among underprivileged children and adults by establishing learning centres, providing training, distributing books and learning aids, and collaborating with similar organizations."

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If you'd like, I can help you draft:

* Object clause tailored to your mission
* Sample filled SPICe+ forms
* Auditor declaration format
* MOA/AOA templates for Section 8

Let me know your proposed objects or area of work, and I can generate the drafts for you.

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