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

Detailed Legal Analysis

Yes, you can register a Section 8 non-profit company in Darbhanga, Bihar, under the Companies Act, 2013, specifically designed for promoting charitable objectives.

Section 8 of the Companies Act, 2013 allows for the formation of companies that are not meant for profit but for promoting commerce, art, science, education, research, social welfare, religion, charity, or any other useful object. Here are the key conditions and steps to register a Section 8 company:

• Minimum Requirements:
  • At least two directors are required for the company.
  • There should be a minimum of two members.
• Objects Clause:
  • The primary objective should be to promote social welfare, education, or charitable activities.
  • The company must use its profits, if any, to promote its objectives and cannot distribute them as dividends.
• Application for Name Reservation:
  • File the application for name reservation through the RUN (Reserve Unique Name) service on the MCA portal.
  • The name should reflect the non-profit nature of the organization.
• Drafting of Documents:
  • Prepare the Memorandum of Association (MoA) and Articles of Association (AoA), clearly stating the non-profit objectives.
  • Include clauses about the prohibition of profit distribution to members.
• Filing with the Registrar:
  • Submit the required documents including MoA, AoA, and Form INC-12 to the Registrar of Companies (RoC).
  • Include details of directors, registered office address, and a declaration of compliance.
• License under Section 8:
  • After reviewing your application, the RoC will issue a license under Section 8, allowing you to operate as a non-profit company.
• Compliance Requirements:
  • Adhere to the annual compliance requirements as per the Companies Act, including filing annual returns and maintaining statutory registers.
  • Maintain transparency in financial dealings as per the guidelines set under the Income Tax Act, 1961.

By following these steps, you can successfully register a Section 8 non-profit company in Darbhanga, ensuring compliance with the statutory requirements laid down in the Companies Act, 2013.