Can I register a Section 8 non-profit company in Allahabad and what are the conditions?

Detailed Legal Analysis

Yes, you can register a Section 8 non-profit company in Allahabad under the Companies Act, 2013, which allows the formation of companies with charitable objectives.

A Section 8 company is one that is established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other useful purpose. The key aspect is that it must operate without the intention of profit. Below are the conditions and steps to register a Section 8 company in Allahabad:

• Minimum Requirements:
  • A minimum of two directors (for a company with share capital) or three directors (for a company without share capital).
  • A minimum of two subscribers to the Memorandum of Association.
• Object Clause: The main object of the company should be to promote charitable activities and should not be aimed at making profit.
• Application for License: Before registering the company, you need to apply for a license under Section 8 of the Companies Act, 2013. This involves:
  • Filing Form INC-12 with the Registrar of Companies (RoC).
  • Submitting the draft of Memorandum of Association (MoA) and Articles of Association (AoA).
  • Providing a declaration stating that the company will not pay dividends to its members.
• Filing Fees: Pay the requisite filing fees, as specified in the Companies (Registration Offices and Fees) Rules, 2014.
• Certificate of Incorporation: Upon approval, the RoC will issue a Certificate of Incorporation along with the license to operate as a Section 8 company.
• Registration for Tax Exemptions: After incorporation, you can apply for tax exemptions under Section 80G of the Income Tax Act, 1961, if applicable.

It is also advisable to consult with a legal professional to ensure compliance with all regulatory requirements and to facilitate a smoother registration process. The relevant sections of the Companies Act, 2013 include Section 8 (regarding formation of non-profit companies) and Section 12 (regarding the registered office). For further details, refer to the Companies (Incorporation) Rules, 2014.