Section- 8 Company is a Non-Profit Organization registered under Companies Act, 2013, subject to the approval of the Central Government, formed with the purpose of serving following objectives:-
Under the new process of RUN(Reserve Unique Name) Web Service, proposed name of the Company is applied by the promoter by paying requisite fee. The applied name will be processed by the Central Registration Centre(CRC) and thereafter approval or rejection will communicated to the applicant. To avoid rejection, the name should be as per the guidelines provided under Companies (Incorporation) Rules, 2014. Once the name is approved the said name will be available for 20 days within which the incorporation process has to be completed.
Inclusion of words "Private Limited" or "Limited" is not allowed for section-8 company. Further as per Rule-8(7) of The Companies (Incorporation) Rules, 2014 "For the Companies under section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc."
Digital Signatures of the all the members and any one Directors (if members and directors are different) needs to be obtained for the incorporation of the Company. For obtaining the Digital Signatures following KYC details are required:
Once the name has been approved by the department, the next step is to obtain the license from the Central Government. For the purpose of obtaining license from the Central Government an application is required to be filled in Form INC-12 along with required documents and the fee as provided in the Companies (Registration offices and fees) Rules, 2014 to the concerned Registrar of Companies, Ministry of Corporate Affairs.
IF the Registrar if satisfied with the application filled by the applicant, a license in Form No. INC-16 shall be issued by the concerned Registrar of Companies, after which the process of incorporation can be initiated.
Once the license has been granted from the Central Government, Incorporation of the Company is done through e-form namely Simplified Proforma for Incorporating Company electronically (SPICEe). Thus, after preparation of documents Form SPICe - INC-32 will be filed along with eMOA (INC-33) and eAOA (INC-34) with the Central Registration Centre(CRC) of Ministry of Corporate Affairs by paying the requisite Stamp duty charges.
Once the entire process is completed and the concerned department is satisfied by the all the compliances. The Certificate of Incorporation will be issued along with the PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of the Company, after which the proposed company will become a separate legal entity to transact the business in its own name.