Section 8

This query is : Resolved

Paawan surana (Querist)
Follow

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)
Follow

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)
Follow

27 April 2018 okay, thank you very much, sir can you guide me with the procedure for the same?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

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

---

## ✅ **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.

---

## ✅ **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.

---

### **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

---

### **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

---

### **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.

---

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

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

---

### 🧾 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."

---

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now