In India, a non – profit organization which is often known as NGO can be registered as a Company under Section 8 of the Companies Act, 2013 and it can also be registered as a Trust and a Society Section 8 Company format of an NGO is the most popular form of NGO in India. It is easy to get it registered, run or to manage a Section 8 Company in comparison of a Trust and a Society. This article will tell us about the minimum requirements that are necessary for the formation of section 8 company.
According to Section 8 of the Companies Act, 2013, a Section 8 Company can be established for the ‘promotion of commerce, social welfare, religion, charity, art, science, sports, education, research, protection of environment or any such other similar object’, provided it ‘intends to apply its profits, if any, or the other income in promoting its objects’ and it also ‘intends to prohibit the payment of any of the dividend to its members.
However some of the Minimum Requirements for Section 8 Company:-
- There must be Minimum of two shareholders;
- There must be Minimum of two Directors (Directors and shareholders can be the same person);
- At least one of the Director shall be the resident in India;
- There is No requirement of Minimum capital
- The Income-tax PAN is a mandatory requirement in case of the Indian nationals;
- Any one of the Identity Proof be it Voter ID/Aadhar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the foreign nationals;
- Any one of the Proofs of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement);
- The Registered Office address proof (that is the rent agreement along with latest rent receipt and a copy of the latest utility bill in the name of the landlord and a no objection certificate from the owner of the premises, in case of rented premises);
- In case the premises are owned by either the Director and the Promoters, any of the documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.
In India, a Section 8 Company is however regulated by the Indian Companies Act, 2013 (and the amendments thereof) and the rules & regulations that are made thereunder and it is administered by the Ministry of Corporate Affairs, Government of India through the Offices of Registrar of Companies (‘RoC’) in each of the state of India. The Company Incorporation rules, the requirements, process, and the procedures vary more or less depending particularly on the type of the company that is to be incorporated.
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