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

Detailed Legal Analysis

Yes, you can register a Section 8 non-profit company in Delhi under the Companies Act, 2013, provided you meet certain conditions and requirements.

A Section 8 company is a non-profit organization that operates for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, and other useful objectives. The key points and requirements for registering a Section 8 company in Delhi are as follows:

• Eligibility Criteria:
  • The company must be formed for promoting a charitable purpose.
  • It should apply its profits, if any, or other income solely for promoting its objects.
  • The company should not pay any dividend to its members.
• Minimum Requirements:
  • A minimum of two directors is required, and they must be individuals (not companies).
  • At least two shareholders are needed, who can be the same as the directors.
• Documents Required:
  • Memorandum of Association (MOA) and Articles of Association (AOA) specifying the non-profit nature and objectives.
  • Identity proof and address proof of the directors and shareholders.
  • Proof of registered office address (like a rent agreement or utility bill).
• Application Process:
  • Obtain Digital Signature Certificates (DSC) for all proposed directors.
  • Apply for Director Identification Number (DIN) for all directors.
  • File Form INC-1 for the reservation of name with the Registrar of Companies (RoC).
  • Once the name is approved, file Form INC-12 to obtain a license under Section 8 of the Companies Act, 2013.
  • After receiving the license, file the incorporation forms (like Form INC-7, Form DIR-12, and Form INC-22) along with necessary documents.
• Compliance:
  • Maintain proper accounts and get them audited annually.
  • File annual returns and financial statements with the RoC as per the provisions of the Companies Act.
  • Adhere to any additional requirements laid down by the Ministry of Corporate Affairs.

For further details, refer to the Companies Act, 2013, particularly Section 8 and relevant rules framed thereunder.