NON- PROFIT MAKING COMPANY OR POPULARLY SECTION-8 COMAPNY
Non-profit making company are incorporated with the objective of charitable purpose only i.e., not to earn any profit from such activities, In erstwhile Companies Act, 1956 it was regulated under Section 25 and was popularly known as Section-25 Company. However, under new Companies Act, 2013 it is covered under Section 8 to be read with Rule 19 and 20 of Companies (Incorporation) Rules, 2014.
It is to be noted that Non-Profit organisation may also get itself registered in form of Society and Trust.
Obtaining DSC & DIN
Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Section-8 Company. DIN and DSC can be obtained for the proposed Directors within 1 to 3 days.
Once DIN and DSC are available for atleast two Directors, application for reservation of name of section-8 company can be made to MCA. Maximum six names can be proposed in INC-1 for name approval.
Application for license
INC-12 shall be filled for obtaining license.
Incorporate a company
After obtaining license INC-7 and INC-22 shall be filed.
COMPARISION TABLE OF DIFFERENT TYPES OF NON-PROFIT ORGANISATON REGISTRATION
Under Society Act, 1860
Minimum: Seven members are required for formation of state level society. - Eight members required from separate states for formation of national level society.
No stamp duty required for memorandum of association and rules and regulations.
Documents required for registration are Memorandum of Association and rules & regulations.
Annually, with the Registrar of Societies, a list of the names, addresses and occupations of their managing committee members.
Time Period for registration/ Incorporation is 15-20 days
Under Indian Trust Act, 1882
At least two trustees are required to register a public charitable trust.
Trust deed to be executed on non-judicial stamp paper, it varies from state to state.
Document required for registration are Trust deed.
No Requirement of Annual Compliance
Time Period for registration/ Incorporation is 7-10 days
Company Act, 2013
Minimum 2 for a private company and 7 for a public Ltd company.
No stamp duty required for memorandum and articles of association.
Documents required for registration are Memorandum and Articles of Association.
Filing of annual accounts and return of company with the ROC.
Time Period for registration/ Incorporation is 40-45 days