Section 8 Company Registration
Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
Section 8 Company Registration
A Section 8 Company is a Company which:
- Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
- It intends to apply all its profits, income, or other earnings, in promoting these objects.
- Pays no dividend or income to its members.
These are limited companies, registered under the Companies Act, and will be treated as limited companies without the phrase “limited” added to their name. They may have been registered as private limited or public limited companies.
Section 25 Company (under Companies Act, 1956) is a prior version. Section 8 Companies are a legal form for Non-Profit Organizations (NPOs) or Non-Governmental organizations (NGOs). A Section 8 Company has the authority to work anywhere in the country.
Documents Required for Section 8 Company Registration
- Copy of PAN Card (For Directors/Shareholders)
- Aadhaar Card (For Directors/Shareholders)
- Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
- 2 Passport Sized Photographs (For Directors/Shareholders)
- Utility Bill (Electricity Bill, Gas Bill)
- NOC(from the owners – if the premises is rented)
Process of Section 8 Company Registration
You are required to fill in your details, online, in our simple questionnaire given above. It contains Name, Complete Address, Proposed Names for the Company, Number of Directors and their details, and Authorized Capital, etc.
Applications would be filed with the ROC to obtain DIN and DSC for the Directors. Duly signed. We need to apply for DSC, first. Once it has been received, Form DIR-3 is to be filed with the ROC to get their DIN. A passport-sized photograph, attested ID Proof and Address proof of the Director are to be attached to these applications.
You suggest your preferences and we’ll conduct Company Name Search. After your approval of the 3 options, we’ll apply for a unique name for your Company. Name availability has to be checked in the “Reserve Unique Name” or RUN facility.
A maximum of 2 names is to be proposed, initially, in Form INC-1. If rejected 1 resubmission is allowed. Both times in separate formats.
We will apply for the Section 8 License with the Central Govt. The right format to use is Form INC-12. It is to be sent with MoA in Form INC-13. AoA, Declaration of CA/CS/CWA in Form INC-14, Declaration by Directors or Applicant in Form INC-15, Name Approval Letter, and a 3-year estimate of future income & expenses. And apply for the COI. COI or Certificate of Incorporation is proof that the company has been created. The unique CIN (Company Identification number) is also mentioned in this.
As soon as all the processes have been completed and your Section 8 Company has been registered, we’ll apply for your PAN and TAN. It is done in Forms INC-7, 8, 10, 9, 22, DIR-2, and 12 with the ROC, along with the required documents. We’ll get them ready, and will send them to you immediately.
Advantages of Section 8 Company Registration
- Distinct Legal Identity: Section 8 Company has a separate legal entity. Different from its members. Its legal standing is different from its members. The Company has a perpetual existence. Along with having organized operations and greater flexibility.
- Zero Stamp Duty: A Section 8 Company is exempt from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company. Which is applicable for registration of other kinds of company structures.
- No Minimum Capital Requirement: No minimum capital limit has been mentioned for a Section 8 Company in India. And the capital structure may be altered at any stage as per the growth requirements of the company. This implies that it can be formed without any share capital. The funds necessary for carrying the business operations can be brought, later, in the form of donations and/or subscriptions from members and the general public.
- Name: Section 8 Company does not need to suffix Limited or Private Limited, next to its legal name. It can be registered with names that have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation.
- CARO: Requirements of Companies Auditor’s Report Order or CARO do not apply to this type of company.
- Tax Benefits: For Section 8 Companies in India, many tax benefits are granted.
- Credibility: Section 8 Companies are more reliable than all other forms of charitable organizations. They are governed by the Companies Act and are regulated strictly. Such as the requirement of a mandatory annual audit, or the MOA and AOA cannot be altered at any stage or situation. The rules on managing the profits and losses of the company make these companies trustworthy.
- Exemption to the donors: Those donating to a Section 8 Company are eligible for tax exemptions u/s 12A and 80G of the Income Tax Act.
- Membership: A registered partnership firm can become a member in its individual capacity and obtain Directorship.
What Is Included In Section 8 Company Registration Package?
Frequently Asked Questions
What is Section 8 Company Registration?
• Income and profits should be used for this purpose or object only.
• No dividend should be paid to its members.
What fees are to be paid for Section 8 Company Registration?
What is the process of Section 8 Company Registration?
1. Just get registered with us in the form provided above. By answering a few simple questions.
2. We’ll apply for DIN & DSC for the Directors. The application will need their passport-sized photographs, attested ID & Address proof.
3. Based on your requirements and preferences, we’ll suggest unique names (not matching any existing ones) for your Company. Once you give us a go-ahead, we’ll apply for name approval.
4. We’ll apply for the license under Section 8 from Central Government. Also, will obtain the COI (Certificate of Incorporation).
5. On receipt of the License, we’ll apply for and send you the PAN & TAN on receipt.
What documents are required for Section 8 Company Registration?
• DSC & DIN of the Directors.
• Director’s ID proof and Address proof.
• Objectives and projected work of the Company.
• Financial statements like assets and liabilities, the proposal for 3-years, etc.
• Registered office address documents.
Can a Section 8 Company be converted into a private limited company?
What are the annual compliances for Section 8 Company?
1. Conducting 2 Board Meetings, at least, in a year.
2. Mandatory audit of the Books of Accounts.
3. Annual returns, along with other e-filing forms such as MGT-7, AOC-4, etc.
4. Income tax returns.
5. Additional compliances to fulfill the registration u/s12AA, 80G, of the Income Tax Act, applicable to donations, etc.
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