Section-8 Company Registration

SECTION -8 COMPANY

Description: Section 8 company is a company which is licensed under section 8 of companies’ act, 2013. It is a non-profit organization (NPO) which is formed with the objective to promote commerce, arts, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.

Section 8 Company Registration process is completely online. Upon completing all registration formalities, the Registrar of Companies issues a digitally signed Certificate of Incorporation (COI). Electronic certificates issued by the ministry can be verified by all stakeholders on the MCA website itself.

Benefits of Section-8 company:

• Distinct Legal Identity: Section 8 Company is a separate legal entity and is different from it’s members. The Company has 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.

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• No Minimum Capital Requirement: o minimum capital limit has been mentioned for a Section 8 Company in India. And the capital structure can 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 is not required to suffix “Public Limited or Private Limited”, next to it’s legal name. It can be registered with names such as “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, and both 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 it’s individual capacity and obtain Directorship.

Documents required:

• Photograph: Latest Passport size photograph of Shareholders and Directors.
• Address Proof: Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors.
• Rent Agreement: Rent Agreement of the registered office should be provided, if any.
• PAN Card: PAN Card of shareholders and Directors, Foreign nationals must provide a valid passport.
• Business Address Proof: Electricity Bill/ Telephone Bill of the registered office address in India.
• Statement of Income & Expenditure: Estimated Statement of Income & Expenditure for next three years.
• Identity Proof: Voter ID/ Passport/ Driving License of Shareholders and Directors.
• NOC from owner: No Objection Certificate to be obtained from the owner(s) of registered office.Registration Process:
  1. Application of DSC and DPIN:All the partners have to apply for Digital signature and DPIN issued by MCA.
  2. Name approval:The partner is required to provide 3 different name options to MCA of which one would be selected. The names provided must ideally be unique and suggestive of corporation business.
  3. Approval of other authorities:The Registrar of Companies might need the applicant towards furnishing the approval or concurrence of any department, regulatory body, appropriate authority, or Ministry of the Central or State Government with respect to the work to be completed.
  4. Obtaining Section 8 Company License:After the corporation’s name is approved, one requires applying for a Section 8 Company license from the MCA. The Registrar would wait for 30 days for objections, if any, of any person pursuant towards notice published in newspapers. The Registrar might also consult any additional regulatory bodies as well as necessary authorities.

               Afterward, the Registrar of Companies might, at its discretion, grant the license with or without certain conditions. The Registrar shall direct the corporation in order to include in its memorandum, or in its articles, or partly in one and partly in the other, such licensing conditions as might be stated through the Registrar in this behalf.

  5. MOA and AOA submission:When the license is obtained, an individual is required to draft Memorandum of association and Articles of Associate. But the object of the corporation should always be a charitable object. Both MOA, as well as AOA, are filed with the MCA with the subscription statement.
  6. Get Section 8 Company incorporation certificate:It usually takes 15- 25 days to form a Section 8 company and get the incorporation certificate. The Certificate of Incorporation is evidence that a corporation exists. It also includes the CIN (Company Incorporation Number). The Registrar would wait for 30 days for objections, if any, of any individual pursuant to notice published in newspapers. The Registrar may also consult any additional regulatory bodies and necessary authorities. Afterward, the Registrar of Companies at its discretion might grant the license. And such a license might contain conditions as deemed necessary through the Registrar.
  7. Apply for PAN, TAN and Bank account:Then an individual must apply for PAN as well as TAN. PAN and TAN are obtained in 7 working days. After this, an individual could submit the Incorporation certificate, MOA, AOA and PAN with bank to open the bank account.

   

  Simple and Transparent Services after Registration:

  • Basic: Section 8 Company Registration with DSC, DIN, MOA, AOA, Name Approval, Section 8 License, PAN, TAN and Incorporation Certificate.
  • Standard: Section 8 Company Registration with DSC, DIN, MOA, AOA, Name Approval, Section 8 License, PAN, TAN, Incorporation, Company Kit and 1 Year TDS License.
  • Premium: Section 8 Company Registration with DSC, DIN, MOA, AOA, Name Approval, Section 8 License, PAN, TAN, Incorporation, Company Kit and 1 Year TDS License and Trademarking.