How To Name Your Section 8 Companies

project report FINAXIS

Introduction

The name of a corporation is the very first thing that an individual immediately connects with at the primary instance. The importance of an appropriate name increases just in case of a non-profitable organization (NGO) or a charitable organization formed under Section 8 of the corporate Act, 2013. These Section 8 companies function solely for the aim of promoting commerce, art, science, sports, education, research, financial aid, religion, charity, protection of the environment, or any such other object meant to uplift either a fraction or the whole society as an entire. So these institutions or companies have to specialize in bringing the corporate into the spotlight and making a mark within the minds of the people so as to induce more volunteers who would work for the organizations and achieve the goals at a very faster Pace.

A Section 8 company will be named and registered as an Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organization, etc. which will be registered under the Ministry of Corporate Affairs, Government of India. Since these companies are legally registered and recognized under the corporate Act 2013, the procedure for registration and therefore the naming criteria are defined under the procedure to register an organization as per the sections of the Act. 

Registration of Section 8 Company A Section 8 

company is different from a trust or a society only in terms of registration as a piece 8 company is registered under the Ministry of Corporate Affairs, Government of India whereas the latter is registered under the authority’s regulations. a piece 8 company has better legal standing, recognition among stakeholders and donors, and high credibility as against a trust or a society. However, the procedure somehow remains identical. For registering a bit 8 company, the specified documents like PAN (Permanent Account Number), address proofs, passport size photographs, etc. of all the administrators and promoters, are to be collected and arranged within the necessary order. Next, it’s necessary to get the DSC (Digital Signature Certificate) and DIN (Directors Identification Number) of all promoters and directors of the corporate. Now the foremost important step is naming the corporate appropriately in a way that the name denotes the explanation for the corporate. Since the name of an organization is what makes it stand out from the group, it must be unique so as to avoid copyright issues and even be easily associable with the company’s objective.

Approval Of Name 

Legally registering and approving the name of the corporate is mandatory. This helps in avoiding any quiet copyrights issues and also ensures that no previous section 8 company has been registered under the identical name. For getting approval, a 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 provide six different names for name approval. The name’s validity might last up to 60 days after it has been granted. As per the corporate (Incorporation) Rules, 2014, the suggested names must contain the words like foundation, association, forum, council, chambers, etc. to be considered a legitimate section 8 name.

Licensing The Corporate 

It is mandatory for an organization to be licensed once the name of the corporate gets approved. For applying for a license, a form INC 12 together with the prescribed fees must be filed together with the required documents. As for the revocation of the license, it’s going to be revoked by the Central Government anytime as per the provisions of Rule 8(6) of the businesses (Incorporation) Act, 2014, just in case of any breach of requirements of the section or violations of any conditions against the general public interest, etc.

Conclusion 

A section 8 company works for society and its upliftment, which supplies it immunity with regard to varied compliances and tax remittances. this provides these companies a new advantage as critical to other general companies. So it’s necessary that these companies make a mark legally and confirm to follow the principles and let the advantages reach society.