Digital Signature Of Director - Step - 1
As the application for Company Incorporation is filed online, the process starts with the issuance of Digital Signatures of class two.
Name Approval Of Company - Step - 2
The Company name must be unique and should not be the same or similar to an existing company, LLP or a trademark.
License For Section 8 Company - Step - 3
An application is filed before the central government for grant of license to incorporate a company without Limited in their name.
Incorporation, PAN AND TAN - Step - 4
An application is made to the ROC office for incorporation of section 8 company, and allotment of PAN and TAN.
No Profit Motive
The companies registered under section 8 of the companies act, cannot distribute profits or assets to its members.
The voting rights to the members of section 8 company are based on the number of shares, similar to that of any other company.
No Minimum Capital
There is no minimum level of capital prescribed, hence a section 8 company can be incorporated with the capital as required by it.
One Resident Director
One director of the company must be resident in India. A person is said to be a resident when he stays in India for at least 182 days in the FY.