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+91- 8422985681
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09833628008
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hr@kshitijconsultancy.com
Section 8 Company Registration
The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.
In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a private limited non-profit company under Section 8 Company under the Companies Act, 2013. A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per the new Companies Act 2013, Section 25 (as per the old act) has now become Section 8.
As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a person can establish Section 8 company for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”.
To register a section 8 company in India, the process is similar to the incorporation of other companies (except requires an additional license). The applicant looking to start a section 8 company has to file Form INC-1 for name availability. On approval of the name, there is a further requirement of obtaining a license for a Section 8 Company, for which file the Form RD-1 in order to obtain a license for such company. After obtaining the license number, the applicant can precede further to incorporate a company by filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.
Advantages of Section 8 Company Registration:
1. 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.
2. No minimum capital requirement
There is no prescribed limit over section 8 companies for the minimum capital requirement unlike other entities such as public limited, but the capital structure can be altered at any stage as the required for the growth of the company.
3. No stamp duty payable
A section 8 Company is exempted for the payment of stamp duty applicable for registration as applicable in case of other structures such as private limited or a public limited company.
4. 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.
Documents For Section 8 Company Registration
Passport size Photograph
Copy of PAN Card
Copy of Aadhar Card
Address Proof (Bank Statement/Mobile/Telephone Bill)
Copy of Electricity Bil
Sale Deed (if owned)
Copy of rent agreement
(if rented)
NOC
Call Us at : 8422985681 / 9833628008
PACKAGES
Basic
17999/-
All Inclusive
2 DIN
2 DSC
PAN & TAN
MOA/AOA
Name Approval
Share Certificate
Certificate of Incorporation
Premium
21999/-
All Inclusive
2 DIN
2 DSC
PAN & TAN
MOA/AOA
Name Approval
Share Certificate
GST Registration
Trademark Filing
Certificate of Incorporation
Standard
18,999/-
All Inclusive
2 DIN
2 DSC
PAN & TAN
MOA/AOA
Name Approval
Share Certificate
GST Registration
Certificate of Incorporation
Note:
- The above price may vary due to stamp duty in various states
- Trademark filing excludes government fees
- GST return filing price may vary depending on number of invoices
Procedure for registering a Section 8 Company:
Getting sorted with Digital signatures
1-2 working days
Digital Signature Certificate(DSC) is required of the proposed Directors and Subscribers of the Company and it can be obtained within 1-2 working days.Applying for the
name
2-3 working days
After obtaining the DSC and DIN of the proposed subscribers and Directors, our team will get in touch for a unique name and along with that collect all the requisite documents in scan for the incorporation of the company through the SPICE i.e INC 32Government License
3-7 working days
Our team shall file the documents required for issuance of license with the authority. Once the license is obtained from the Ministry our team shall proceed for the incorporation of the company.Filling for the incorporation
3-5 working days
After the name approval and review of all the documents required, we will submit incorporation Forms to MCA and once it gets approved Certificate shall be issued by the ministry and we will send the MOA & AOA, DIN via mail and DSC through courier.Requirements for registering a Section 8 Company
There must be a minimum of 2 members to avail registration.
All the members must be having proof for verification as it requires licensing.
The object of the company must be defined in the trust deed.
Document must be depicting and describing the objects of the its existence and its operations.
The trust deed should be executed on non-judicial stamp paper.
The valuation of trust is done based on the property the trust name holds.
Why go with Section 8 Companies ?
To serve the society with charitable activities.
To Promote one or other form of arts and activities as such.
To indulge in giving back to the community in terms of Non profitable activities.
Promoting educational activities by making it more accessible for a common citizen.
Features pertaining to Section 8 Company :
The certification is issued by Ministry of corporate Affairs.
Name prefix is not a problem as it is not mandatory to have private or public appended at the end.
Profit must be reused for the purpose the company or promotion of the soul objective only.
The board of directors have the decision making sets unlike trustees in a trust.
FAQ’s Section 8 Company Registration
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Is a registered office mandatory for section 8 company ?
Yes a registered office is mandatory for starting a Section 8 Company. -
Can a One Person Company (OPC) be incorporated as or convert into a Section 8 Company?
No. Rule 3 of the Companies (Incorporation) Rules, 2014 prohibits a one person company to be incorporated as section 8 company or to convert into a Section 8 Company. -
Who is authorized to issue license to Section 8 Companies?
Registrars of Companies of respective jurisdictions are delegated with the powers of Central government to issue license to Section 8 Companies. -
What are the criteria to be eligible to be a director of section 8 company ?
The person must be of 18 years or above and can be native to any country. -
What are benefits and expectations from a section 8 Company ?
- ● Can be used to create charitable entities.
- ● The main instrument of the trust is the deed, it is where the main objective and instruments are specified clearly during incorporation.
- ● The licensing must be done from the Government where is issued by the Ministry of Corporate Affairs.
- ● The Company would have profit and lose just like other incorporations, but this must all be dealt only via charitable activities.
- ● It is established as trust via the trust deed by the members who result to form the management.
No it is not legal and cannot be done as it does not fall under the rules for incorporating a Nidhi company
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