In the case of a company operating pursuant to Section 8 of the Act, the board of the company may decide to conduct CSR activities authorized for the company by the CSR committee of the company or a registered trust or company founded by the company, either individually or in conjunction with other companies. In this article, let’s know more about How To Name Your Section 8 Companies.
At first glance, a person’s immediate connection to a company is its name. The importance of an appropriate name increases in the case of a non-profitable organization (NGO) or a charitable organization formed under Section 8 of the Company Act, 2013.
These Section 8 companies function solely for the purpose of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other object meant to uplift either a fraction or the entire society as a whole. So these institutions or companies need to focus on bringing the company into the spotlight and making a mark in the minds of the people in order to get more volunteers who would work for the organizations and achieve the goals at a faster pace.
A Section 8 company can be named and registered as an Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organization, etc. that will be registered under the Ministry of Corporate Affairs, Government of India. Since these companies are legally registered and recognized under the Company Act 2013, the procedure for registration and the naming criteria are defined under the procedure to register a company as per the sections of the Act.
A Section 8 Company’s name must not contain the terms Private Limited or Limited as a suffix. Instead, the company’s name should end with specific words that have been prescribed for this purpose, such as foundation, forum, association, federation, chambers, confederation, council, electoral trust, and others.
How to Name a Section 8 Company?
These companies typically engage in social development efforts with the assistance of their founders and volunteers from various parts of the country, encompassing diverse cultures.
This article will explore the process of naming a Section 8 company while adhering to the essential rules and conventions prescribed by the naming guidelines, which we will discuss in detail later on.
Registration of Section 8 Company:
A Section 8 company is different from a trust or a society only in terms of registration as a Section 8 company is registered under the Ministry of Corporate Affairs, Government of India whereas the latter is registered under the State Government regulations. A Section 8 company has better legal standing, recognition among stakeholders and donors, and high credibility as opposed to a trust or a society.
However, the procedure somehow remains the same. For registering a Section 8 company, the required documents such as PAN (Permanent Account Number), address proofs, passport size photographs, etc. all the above documents of all directors and promoters, are to be collected and arranged in the necessary order.
Next, it is necessary to obtain the DSC (Digital Signature Certificate) and DIN (Directors Identification Number) of all promoters and directors of the company. Now the most important step is naming the company appropriately in a way that the name denotes the cause of the company. Since the name of a company is what makes it stand out from the group, it needs to be unique to avoid copyright issues and also be easily associable with the company’s objective.
Approval of Name:
Legally registering and approving the name of the company is mandatory. This helps in avoiding any kind of copyright issues and also ensures that no previous Section 8 company has been registered under the same name. For getting approval, an application Form INC-1 should be filed with the Registrar of the company (Central Registration Centre – CRC of Ministry of Corporate Affairs).
To avoid chances of repetition of names, the applicant will have to provide six different names for name approval. Once approved, the validity of the name extends up to 60 days. As per the Company (Incorporation) Rules, 2014, the suggested names must contain words such as foundation, association, forum, council, chambers, etc. to be considered a valid Section 8 company name.
Licensing the Company:
It is mandatory for a company to be licensed once the name of the company gets approved. For applying for a license, an application form INC 12, along with the prescribed fees, must be filed along with the required documents. As for the revocation of the license, it may be revoked by the Central Government at any time as per the provisions of Rule 8(6) of the Companies (Incorporation) Act, 2014, in case of any breach of requirements of the section or violations of any conditions against the public interest, etc.
Section 8 Company work for the benefit of society and its upliftment, so they are given immunity with regard to various compliances and tax remittances. These companies have a distinct advantage over other companies in the same field. As a result of this, these companies need to make a mark and adhere to the rules in order to ensure that the benefits are shared with society as soon as possible.
Please contact our team to guide you further. Ask the Quote for the Section 8 Company Registration.