A company is a distinct legal entity where people voluntary associate with each other for doing some kind of business. Formation of a nonprofit organization or company comes under the provisions of Indian Companies Act, 2013. There are five types of Companies can be Registered under Registrar of Companies (ROC) and the Four types of Companies are For Profit companies and Fifth type of Company is Non Profit Company:
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnership (LLP)
- Non Profit Company under Section 8
A Private Limited Company is a company privately held where the liabilities of the members are limited to the amount of shares respectively held by them. Shares of a Private Limited Company cannot be traded publicly. There are minimum 2 members required to start such company.
A Public Limited Company grants limited liability to its owners and management by permitting the firm to sell its shares to investors. A Public Limited Company faces far more strict regulations than a Private Limited Company. There are minimum 7 members required to start such company. It brings with it some added advantages like unlimited members, easy transfer of shares and increased transparency.
A One Person Company as the name suggests is a company with only one member. It enjoys all those provisions made for a private limited company and is incorporated just like a private limited company. The difference, however, lies in limited liability, concept of nominee and the need to file annual returns.
Any company that is without the profit and for charitable purpose can be registered under Section 8 of Companies Act 2013. We provide help in registering a Non Profit Company under Section 8 of The Companies Act, 2013. Previously is was known as Section 25 (of old Companies Act) Non Profit Company. Nonprofit means that the profit is not distributed amongst promoters or directors. If you are looking forward to provide help in micro-finance sector to promote economic welfare then this type of company is suitable for you. The complete procedure that needs to be followed involves strategy building, HRD, documentation, objectives, forum, IT, monitoring, publicity, administrative management etc. Such companies need large amount of funds, thus, they are constantly in search of fundraising ideas. There are a lot of such organizations who are always searching for new ways to raise money.
Registration of Section 8 Non Profit Company
Chanakya has worked with a number of nonprofit organizations and helped them in fund raising. If any NGO wishes to receive help from Chanakya we would be glad to assist you and provide necessary support. We shall help you right from registration to the documentation process. We are committed towards helping the organization succeed with the fundraising part or any other trouble that it might be in.
- The Company with charitable objects shall be formed as limited Company. The Non Profit Company can be registered without the words ‘Limited’ or ‘Private Limited”.
- The company registered under section 8 shall enjoy all the privileges and be subject to all the obligations of limited companies.
- A firm may also be a member of the Non Profit Company, when it is to be registered or after registration, by adopting the add member process.
- At the time of the registration of the Non Profit Company the required objects and and applicable clauses must be included in Memorandum of Association and Articles of Association. Because if a Non Profit Company is registered under section 8 then after registration there is no provision to alter the Memorandum or Articles except with the previous approval of concerned Authority of ROC.
Requirement for Section 8 Non Profit Company Registration
The Non Profit Company is registered under section 8 of Companies Act 2013 at Registrars of Companies (ROC) of Ministry of Corporate Affairs:
- The registration process is online but have to submit the Memorandum of Association (MOA) and Articles of Association AOA) along with directors address proof with photographs. So it is required that the Memorandum is to be prepared well before submission, that we do at our part according to your decided objectives.
- First we have to Check the availability of name of Non Profit Company so at least 4 names must be given for Company name.
- Name of Directors
- Aadhar card or Diving license or Passport as Proof of identification and address of Director
- Pan Cards of Directors
- Digital Signature Certificate (DSC) of Directors
- Director Identification Number (DIN) of Directors
- Office address – Latest Electricity Bill of the premises using as Office address proof
- Rent Agreement and NOC from the landlord to use the address as registered Office
How Chanakya will help you for Section 8 Non Profit Company Registration:
We help you in getting Name of your company approved. We file an application on your behalf in Form No. INC1 to get your company’s name approved. A point to be noted here is that experts who have knowledge about rules and regulations regarding names are necessary because if in case you chose a name that is restricted by Emblem act or under other such acts then your application shall be rejected. After long discussions with the client company we make a list of 6 probable names priority wise that shall be used in the name approval application.
Digital Signature Certificate (DSC) and Director Identification Number (DIN)
We obtain Digital Signature Certificate and Director Identification Number for you. It is very important to have these since the documents that would be uploaded with the e-form must be signed using them.
Memorandum of Association (MOA) and Articles of Association (AOA)
MOA and AOA are extremely important Constitutional Documents of the company. These documents contain the bylaws, rules and regulations according to which the company shall be governed. Chanakya has years of experience and expertise in this and we shall prepare perfect MOA and AOA for your company that are aptly suitable for it.
Certificate of Incorporation
We shall take care of all the legal necessities and documents needed to apply to Ministry of Corporate Affairs in order to register the company. After the complete process you shall receive your certificate of Incorporation that depicts your company’s legal presence.