Section 8 Company

Register

A Section 8 Company Now

@19,999.00 All inclusive. No hidden charges




Advantages Of Section 8 Company

Section 8 Company is a Non Profit…..

Registration Time

Company Registration in just 25-30 Days

Documents Required

List of Documents / IDs for registration

What is Section 8 Company ?

Section 8 Company is a Non Profit making Company which has its objects, the promotion of Commerce, art, science, sports, education, research, social welfare, religion, charity, and protection of environment or any other such objects and which Intends to apply its profits or any other income in promoting its objects and to prohibit the payment of any dividend to its members.

Section 8 Company is regulated by Indian Companies Act, 2013 along with the amendments in it and the rules, regulations set under it. It is administrated through the Offices of Registrar of Companies (‘RoC’) by the Ministry of Corporate Affairs, Government of India in individual states. The rules, requirements, procedures and process for incorporating the company depends on the type of the company. For the welfare of the underdeveloped parts of the society, Section 8 company registration is done.

What is Section 8 Company?

A company licensed under Section 8 of the Companies Act, 2013 (the Act) formerly known as Section 25 Company under the Companies Act, 1956. The main objective is the promotion of social welfare, research, religion, charity, commerce, art, sports, education, science and protecting the environment or objects provided profits and other income will be used to promote the objects of the company only. Also, the members receive no dividend. It is registered for not-for-profit or charitable purposes.

Difference between Societies and Trusts

Section 8 Company are registered under Ministry of Corporate Affairs (MCA) which is under Central Gov. Societies and Trusts are controlled by State Gov. regulations. It has higher credibility amongst Government departments, donors and stakeholders. Also, the name of the company can be without using ‘Private Limited’ or ‘Limited’.

Requirements Necessary to Be Section 8 Company:

  • -There need to be two shareholders.
  • -There need to be two directors and shareholders can be directors as well.
  • -One of the directors must be resident of India.
  • -No minimum capital is required.
  • -The income-tax plan is compulsory for Indian nationals.
  • -Any of these identity proofs are required: Voter ID, Driving License, Aadhar Card, and Passport. For  foreign nationals, the passport is a must.
  • -Proofs of residence: Electricity Bill, Mobile Bill, Telephone Bill and Bank Statement (Any one).
  • -The address proof of The Registered Office: It is a rent agreement with the latest rent receipt with a  copy of latest utility bill which is in the name of the landlord. It also includes a no objection certificate given by the owner of the premises (if rented).
  • -If the premises are owned by the Director or any of the promoters, any documents that establish the  ownership such as House tax receipt or Sale Deed has to be given. No objection certificate is a must.

Procedure for Section 8 Company Registration:

Digital Signature Certificate (DSC): It is necessary to sign the documents when e-forms on MCA portal has to be filled by the authorized person. Digital Signature is the authentic and secure way to submit any document electronically. A self-attested identity proof and address proof has to be submitted along with the application made to the certifying authority.

Director Identification Number (DIN): An application is to be filed in Form NO. DIR-3 available on MCA portal. A self-attested copy of Identity and Address proof, PAN, a recent passport-sized colour photograph of the person applying has to be submitted. The office of Regional Director, MCA approves and processes DIN application. It should be attested by practising professional which can be Company Secretary, Chartered Accountant, Cost, and Management Accountant.

Let us see the steps to be followed for the registration:

  • -Arrange the documents required: Identity Proof which is Copy of the Permanent Account Number (PAN) of every Directors /Promoter.
  • -Address Proof: A Copy of a valid Driving Licence/ Passport/ Aadhar/ Electricity Bill/ Telephone Bill. Bills can’t be older than 2 months.
  • -Latest passport size photographs of every Directors/Promoter.
  • -A Rent Agreement, Licence and Leave Agreement if premises were taken on rent.
  • -The Utility Bills of the proposed registered office.
  • -The details of Directors Directorship in other LLPs/companies.
  • -The Consent to act as a Director in Form DIR-2.
  • -Apply for DSC and DIN.
    -Apply for the name of the company: An application has to be submitted in Form No.-INC 1 and then  approved from ROC. The company can propose six names in the order of their preferences. The name is  approved within 1-2 business days. The approval of the name is applied by subscriber or promoter of the -Memorandum of Articles and Association.
  • -Articles of Association and Memorandum of Association of the proposed company are to be drafted in Form INC-13:
    -Each of the subscribers has to sign it by mentioning name, address, occupation and description. If there is any witness, it should be considered. For foreign subscribers, required documents have to be attested by Consulate of The Indian embassy in the particular foreign public notary or respective country. Other documents should be Consent Letters, Affidavits, and Certificate of Compliance etc.
  • Obtaining license under section 8:
  • Documents required:
    a. E-Form INC 12 along with MOA and AOA. This declaration confirms application by the Non- Judicial stamp paper or Company Secretary.
    b. Names, addresses, descriptions, and occupation of board members and promoters of the company.
    c. Statement of details of liabilities, assets the company has on the date applied.
    d. Estimation of expenditure and future annual income of statement of small described work.
    e. A brief statement on the circumstances on which the application is made.
    f. A letter of authority.
    g. Payment of prescribed fees to register.
  • Certificate of incorporation:
    After the license of the company is issued, along with the ROC following forms has to be filed:
    a. Form No.INC-7.
    b. Form No.INC-22.
    c. Form No.DIR-12.
    If the ROC gets satisfied with the documents provided, Certificate of Incorporation in Form INC 16 will be issued by the company.

Benefits of Section 8 Company

  • -No Minimum paid-up capital required.
  • -Exempted from Stamp duty registration.
  • -Any of partnership firms which are registered is capable to become a member in its own capacity.
  • -There are Tax deductions benefits u/s 12AA and u/s 80G of Income Tax Act for the donors.
  • -Is flexible.
  • -Only 30-45 days are taken to register a Section 8 company which can be even earlier if the application is approved by Regional Director earlier.

What Is NGO?

It is a non-governmental organization which is usually a non-profit group, establishment or entrepreneurship of activists, individuals, social and voluntary persons. It includes institutions, groups with co-operative and humanitarian objectives and not on commercialones. It is independent of the Government. They are private agencies that support developments at local, national and even international levels. They include independent cooperatives, societies, community associations and groups. They uplift socio-economic and political weaker sections of the society. For being a part of NGO, go through the process of NGO registration in India.

NGO Registration in India

To register there are following methods:

Society Registration.

1) Selection of Unique Name for the NGO: Under Societies Registration Act, 1860 it is not permissible to use names similar to the ones which are already existing. The name shouldn’t be any kind of patronage, either.
2) Preparation Of Memorandum of Association and Rules & Regulations: Clauses included in this are: Name clause, Registered Office Clause, General Body Member Clause and List, Executive Body members List. Rules & Regulations included: Membership Clause, Subscription Clause, Meeting Clause, Committee Clause, Auditor, and Legal Procedure.
3) Other Documents: There should be a cover letter that requests registration of society and it should be signed by all founding members. It should also include Declaration by President of Society, Certified Copy of Duly Passed Registration and ID proof of address.
4) Submission of Documents and registration.

Trust Registration.

It has public and private trusts. For both, the process is:
1) Choose the name of the trust. It is not permissible to use names similar to the ones which already exist.
2) Determine the Settler and trustees.
3) Preparation of Memorandum of Association and Rules & Regulations: Clauses included in this are: Name clause, Registered Office Clause, General

Body Member Clause and List, Settler and Trustee Clause. Rules & Regulations included: Membership Clause, Subscription Clause, Meeting Clause, Committee Clause, Auditor, Legal Procedure, and Property that will be devolving upon the trustees.

Non-Profit Company Registration.

1) Get the available name and file for INC-1.
2) Application to be written in E-form-24A.
3) A Statement of liabilities and assets of the company.
4) Description of proposed work.
5) All members should make a declaration.
6) The copy is to be sent to the ROC.
7) If there is no objection, concerned authorities will be consulted and modification, the alteration may be requested by ROC.

To register for all three, the NGO consultancy service has to be contacted for the details.

Laws Applicable For NGOs

  • -Constitution of India Articles 19(1)(c) and 30;
  • -Public Trusts Acts of various states;
  • -Income Tax Act, 1961;
  • -Societies Registration Act, 1860;
  • -Foreign Contribution (Regulation) Act, 1976;
  • -Indian Companies Act, 2013, section8;
  • -Maharashtra Value Added.

We have discussed here what is section 8 company and benefits of section 8 company. You can register for NGO as well to help the backward parts of the country to develop. Many NGOs and Company 8 are already present and they help in the upliftment of the society.

Advantages Of Section 8 Company

Separate Legal entity

A Section 8 Company also holds its own identity like other companies structures and has its own separate legal standing from its member. A Section 8 Company also has a perpetual existence.

Tax Exemption

Numerous Tax exemptions are provided to Section 8 Companies, specifically to the donors who are contributing to Section 8 Companies, they can claim the Tax exemption against the donation they made to a Section 8 company.

Transfer of ownership

The member of the private limited company are prohibited to transfer their shares. But in a Section 8 company, company members can easily transfer the ownership of the company. Both movable and immovable interest of members can be easily transfered to people. Thus, in a Section 8 company ownership can be transfered without too many restrictions.

Exemptions

Section 8 Company are easy to manage and incorporate due to many exemptions and privileges are given to them.

Clear Objective

Objective of Section 8 Company in clear accordance with the general public or a targeted crowd which leads to easy donations and loans.

Procedure for Section 8 Company Registration

  • 1.Complete our registration form:

     

    You need to fill our registration form and submit the required documents

  • 2. Get DIN and DSC: 2 working days

     

    After submitting all the required documents, we will make your DIN and DSC

  • 3. Verification and Name Approval: 2 working days

     

    We will verify your details and then apply for the name reservation form.

  • 4. Documents Submission: 4 working days

     

    Once you get the name approval, you need to sign some documents to proceed for the final incorporation step

  • 5. Company approval: 20 working days

     

    Once all the documents are submitted to ROC your company will be approved by MCA

  • 6. Your work is completed:

     

    Once your company is incorporated, we will send you the Company Kit includes MOA/AOA and DSC’s.

Procedure for Section 8 Company Registration

1.Complete our registration form:

You need to fill our registration form and submit the required documents

2. Get DIN and DSC: 2 working days

After submitting all the required documents, we will make your DIN and DSC

3. Verification and Name Approval: 2 working days

We will verify your details and then apply for the name reservation form.

4. Documents Submission: 4 working days

Once you get the name approval, you need to sign some documents to proceed for the final incorporation step

5. Company approval : 20 working days

Once all the documents are submitted to ROC your company will be approved by MCA

6. Your work is completed:

Once your company is incorporated, we will send you the Company Kit includes MOA/AOA and DSC’s.

Registration Of Section 8 Company @19,999.00

* Stamp duty Extra for States: Punjab, Kerala, Madhya Pradesh
* Charges extra for NRI/Foreign Directors, or Foreign shareholding companies.

DOCUMENTS REQUIRED

ID Proof

PAN Card

Address Proof

Utility Bills Or Election ID Or Aadhar Card Or Driving License

Passport Size Photo

Passport Size Photo

Registered Office

NOC From The Owner With Utility Bills With Rent Agreement Or Registry Proof Or House Tax Receipt

Frequently Asked Questions

  • Who can become a member in Section 8 Company?

    The director required must be a natural person and above 18 years of age. He may or may not be a resident of India. Even foreign nationals can become directors in Indian Section 8 company.

  • What is the minimum and maximum limit of directors to incorporate a Section 8 company?

    Minimum two directors are required if incorporated as private limited and minimum three directors are required if incorporated as a public limited company. Maximum there can be 200 members if incorporated as private limited, but if incorporated as public limited there is no limit as such.

  • Is it necessary to have a charitable object to register a Section 8 company?

    Yes, it important to have non-profit motive to incorporate a Section 8 company.

  • How much capital is required?

    As per Companies Act, 2013, there is no such restriction regarding capital to incorporate a company. This limit can be increased at any stage of the business in future as the business grows.

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