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A Non-profit making Company is a Company which:

(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;

(b) intends to apply its profits, if any, or other income in promoting its objects; and

(c) intends to prohibit the payment of any dividend to its members.



1. Obtain Digital Signatures

Nowadays various document prescribed under the Companies Act, 2013, are required to be filed with the digital signature of the Managing Director or Director or Manager or Secretary of the Company, therefore, it is compulsorily required to Obtain a Class II Digital Signature Certificate from authorized DSC issuing Company for at least one director to sign the E-forms related to incorporate like form INC.1 and other documents.

2. Obtain Director Identification Number (Section 153)

As per 153 of the Companies Act, 2013, every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number in form DIR.3 to the Central Government in such form and manner and along with such fees as may be prescribed.

Therefore, before submission of e-Form INC.1 for availability of name, all the directors of the proposed company must ensure that they are having DIN and if they are not having DIN, it should be first obtained.

3. Name availability for proposed company

As per section 4(4) read with Rule-9 of Companies (Incorporation) Rules, 2014, application for the reservation/availability of name shall be in Form no. INC.1 along with prescribed fee of Rs. 1,000/-. In selection of Company name should be in accordance with name guidelines given in Rule-8 of Companies (Incorporation) Rules, 2014. The name will be valid for a period of 60 Days from the date on which the application for Reservation was made.After approval of name ROC will issue a Name availability letter w.r.t. approval for availability of name for a proposed company. 

Note: MCA has prescribed certain rules for name availability so it is advisable to check guidelines for the same before applying for name. Refer Rule-8 of Companies (Incorporation) Rules, 2014.

4. Preparation of the Memorandum of Association (MOA) and Articles of Association (AOA)

Drafting of the MOA and AOA is generally a step subsequent to the availability of name made by the Registrar. It should be noted that the main objects should match with the objects shown in e-Form INC.1. These two documents are basically the charter and internal rules and regulations of the company. Therefore, it must be drafted with utmost care and with the advice of the experts and the other object clause should be drafted in a very broader sense.The memorandum of association of the proposed company shall be in Form No.INC.13.

5. License under section 8 for new companies with charitable objects

A person or an association of persons desirous of incorporating a company with limited liability under sub-section (1) of section 8 without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, shall make an application in Form No.INC.12,along with the prescribed fee, to the Registrar for a license under sub-section (1) of section 8.


Register NGO under Section 8-FAQs

1. Can a firm be a member of a Non-Profit Making Company??

As per section 8(3) a partnership firm may become a member of a Section 8 Company. The membership will end if the firm is dissolved.

2. Can a Profit Making Company convert into a Non-Profit making company under section 8 and vice versa?

Yes,  a profit making company can become a non-profit making company under section 8 provided it fulfills the conditions under under section 8 read with Rule 20 of Companies (Incorporation) Rules, 2014. Similarly, a Non-Profit making company can become a Profit making company by following the procedure given in Rule 21 and 22 of Companies (Incorporation) Rules, 2014.

3. Can we change the MOA & AOA of Section 8 Non-Profit Company?

No, A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government.

4. What is the penalty for violation of conditions under section 8?

The company shall be punishable with fine which shall not be less than ten lakh (10,00,000) rupees but which may extend to one crore (1,00,00,000) rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five (25,000) thousand rupees but which may extend to twenty-five (25,00,000) lakh rupees, or with both.


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