Easy Online Section 8 Company Registration with Finaccle.
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1. Collect the documents relevant for registration
2. We shall apply for registration on your behalf.
3. You can get registration in no time.
Introduction
Section-8 Company is a non-profit organisation with benevolent objectives such as the development of the arts, business, science, education, sports, environmental protection, religion, charity, and so on. The Companies Act, 2013 does not prohibit it from making profits, but it does prohibit profit distribution among its members.
The earnings earned by such a corporation must be used solely to promote company's goals. Central government register such company as a company with limited liability without the addition of the words "Limited" or "Private Limited" to its name.
Features
A Section 8 company comprises of the following distinct features that most other kinds of companies do not have:
01
Charitable objectives:
Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.
02
No minimum share capital:
Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital.
03
Limited liability:
Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
04
Government license:
Such companies can function only if they have the Central Government's license. The Government can revoke this license as well.
05
Privileges:
Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
Firms as members:
Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.
Eligibility criteria
Minimum 2 Directors for Private Limited NGO & 3 directors for Public Ltd. NGO
Minimum 2 shareholders for Private Limited NGO & 7 shareholders for Public Ltd. NGO
Director and Shareholders may or may not be same person
Minimum Capital Requirement is NIL
DIN of the directors (if available else new apply)
Digital Signature of shareholder and directors
Benefits of section 8 company
Non-application of Companies Auditor's Report Order (CARO)
Exemption from requirement of minimum paid up capital
No stamp duty charges on registration which makes its registration cost effective
The liability of its members is limited to the extent of capital subscribed by them
remaining unpaid. The members cannot be called upon to pay company?s
liabilities out of their personal assetsIt has a separate legal entity apart from its members which empowers it to acquire
and hold assets in its own nameSection-8 companies can be registered for taking benefits u/s 12A and 80G
of Income Tax Act
Documents required
DIN (Director Identification Number)
DSC (Digital Signature Certificate)
Self-declaration about the directorship in other companies
Passport sized photographs of all the directors
Consent to act as director
Unique name
Identity proof
Mobile no. and e-mail id of directors and shareholders
Address proof
Mobile no. and e-mail id of directors and shareholders
Process
01
Application for name availability in form RUN
A request for name availability must be sent through the "RUN" facility. The phrases Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, and the like shall be included in the name of Section 8 Company. In the RUN facility, you can submit up to two names at a time and make one resubmission. The RUN fee is Rs. 1000/-. Once authorised, the name is valid for 20 days.
02
Getting Digital Signatures of First Directors
The next stage is to obtain the first subscribers' and directors' class 3 digital signatures, which are essential for filing the incorporation form with the ROC.
03
Preparation of Memorandum of Association, Articles of Association and other documents
The company's charter, or MOA, outlines the scope of its operations. An AOA is a document that governs the company's internal management. The MOA for a Section 8 company must be in form INC-13, while the AOA for a Section 8 company has no set format for which Table F provisions can be adopted. Each subscriber must sign the company's MOA and AOA and include his or her name, address, description, and occupation in the presence of at least one witness who will attest the signature and sign and add his or her name, address, description, and occupation.
Filing of SPICe 32 Form
After getting proposed name approval, one may go ahead with filing of form SPICe 32.
Attachments of SPICe 32:
The following are the documents which are required to be attached with the SPICe form for incorporation of Section 8 Company.
Memorandum of Association in Form INC-13;
Articles of Association; (No Specified format)
Declaration in Form INC-14 by CS/CA/CWA in practice, that the draft MOA & AOA have been drawn up in conformity with the provisions of Section 8 and rules made thereunder and that all the requirements of the Act and the rules made thereunder relating to registration of the company under Section 8 and matters incidental or supplemental thereto have been complied with;
Declaration by each of the persons making the application in Form INC-15;
An estimate of the future annual income and expenditure of the company for next three years;
Name Approval Letter received from CRC;
Consent and Declaration by first Directors in Form DIR-2;
Self-declaration by first subscribers in Form INC-9
PAN card of first directors and subscribers;
Aadhar card of first directors and subscribers;
Proof of Registered office like Sale Deed/Lease Deed/Rent Agreement etc.;
Latest Utility Bill of Registered office like Electricity Bill;
NOC of owner if registered office is taken on rent/lease.
SPICe 33 and 34 i.e., e-MOA and e-AOA can?t be used for Section 8 Company. Section 8 companies are mandatorily required to file MOA and AOA as pdf attachments to SPICe-32.
If the ROC is satisfied with the submitted forms, the ROC is issued a Certificate of incorporation.
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By visiting Finaccle you can be relieved from all the headaches attached with registration of section 8 company.
Got a question?
We've got answers.
Can a One Person Company (OPC) be incorporated as a Section-8 Company?
No, an OPC cannot be incorporated as a Section-8 Company.
Can Section-8 companies declare dividends?
How any members are required to start a Section-8 Company?
Is AGM mandatory for Section 8 Company?
How many directors are required for company registration?
Is tax audit applicable to Section 8 companies?
Is the accounting standards applicable on the section 8 company?