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FAQ - Sec. 8 Company

  1. What is Sec. 8 Company? (Earlier Known as Section 25 Company)

    A non-profit organisation in India can be registered as a Trust or as Society under the Registrar of Societies as a private limited non-profit company under Section 8 of the Companies Act, 2013.

    Earlier, this Section 8 was popularly known as Section 25 of the old Companies Act, 1956. Now, according to the Section 8 (1a, 1b, 1c) of the new Companies Act, 2013, a Section 8 Company can be incorporated to promote commerce, art, science, research, sports, social welfare, education, charity, religion, protection of environment or any such object. The condition is that such a Company should use its profits (if any) for promoting its objects and should not pay any dividends to its members.

  2. Documents for Section 8 or Sec. 25 Company Registration?

    Identity proofs and address proofs of all proposed Directors are required for registration of a Sec. 8 Company. For Indian nationals, PAN Card is mandatory. In addition to this, a No Objection Certificate (NOC) should be obtained from the landlord of the registered office address for having company's office registered in his or her premises. The identity and address proofs of the landlord are also required.

  3. How to register Sec. 8 or Section 25 Company?

    Registering a Sec.8 Company can take 20-30 days, subject to Registrar of Companies (ROC) processing time. Various steps to register a Limited Liability Company are as follow:

    • Obtaining DSC and DIN: Digital Signature Certificate and Director Identification Number (DIN) would be required for the proposed Directors of the Sec.8 or Sec- 25 Company to be registered. It can take 5-7 working days.
    • Name Approval and License: Once DSC and DIN are obtained for a minimum of two Directors; application for name reservation can be made to the Ministry of Corporate Affairs (MCA), Government of India. Once the name is approved, a license should be obtained.
    • Company Registration: After the license is obtained, the related documents should be submitted to the MCA along with an application for registering the company. Subject to the MCA processing time, it can take 5-7 working days to approve the application.