How Is A Section 8 Company Formed?

Forming a Section 8 Company in India

1. Minimum Requirements: To form a Section 8 Company in India, you need a minimum of two members (for private) or seven members (for public), with at least two directors (private) or three directors (public), along with a registered office address.

2. Name Approval: Select an exclusive name for your Section 8 Company that does not resemble any existing company's name and adheres to the Ministry of Corporate Affairs' naming regulations.

3. Digital Signature Certificate (DSC): Secure Digital Signature Certificates (DSC) for all prospective directors, as it is essential for online document submissions.

4. Director Identification Number (DIN): Directors must apply for DIN by filing Form DIR-3.

5. Drafting Memorandum and Articles of Association: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) for your company, as these documents outline the company's goals and operational regulations.

6. Application for Name Approval: File an application for name availability in the prescribed Form INC-1 with the Registrar of Companies (ROC).

7. License Application: Fill out Form INC-12 with director details, registered office address, and company objectives, then submit it to the ROC.

8. Approval from Central Government: ROC forwards your application to the Central Govt. If approved, you get a Section 8 Company license under the Companies Act, 2013.

9. Incorporation: Once the license is granted, the ROC will issue a Certificate of Incorporation in Form INC-11, and your Section 8 Company is officially formed.

10. PAN and TAN: After incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your company.

11. Bank Account: Open a bank account in the name of the company and deposit the minimum capital required, if any.

12. Compliance: Ensure compliance with various regulatory requirements, including filing annual financial statements and other statutory documents.