Section 8 Registration

If you are thinking of registering a Section 8 company then we can help you and it is a great idea for any start-up to start their new business with a Section 8 company. Section (8) companies refer to those companies whose aim is not earn profit, they are mainly established with the purpose of social welfare. According to the companies act 2013, section 8 companies can be formed either as Private Limited company, LLP or Public Limited Company. This company established for the promotion of art, commerce, science, sports, education, protection of environment, research, social welfare, religion and charity or any such other object. This company is not set up for the purpose of profit. If the company makes any profit, then its dividend is not distributed among the members. A non- profit organization can be registered as a society under the registrar of societies or as a trust. Section (8) companies have to pay tax like other companies. The income tax act 1961 gives all categories equal treatment. Section 80 G offers income tax exemptions as incentives for donation made to charity organizations. The donations in section 80G are eligible for deduction of up to either 100% or 50%. Non -profit organizations can receive the deduction under 80GGA on donations made to scientific organizations for scientific research organizations and rural development.

Minimum requirements for a sec 8 company           

  • Minimum 2 Shareholders (These Shareholders can be the directors)
  • Minimum 2 Directors (At least one of these directors should be Resident of India)
  • No minimum capital required

Documents required for a sec 8 company

  • PAN Card is mandatory for registration of sec 8 company
  • Passport size photographs of all directors
  • Aadhar Card
  • Bank Statement 1st page (signated by the Bank)
  • NOC
  • Electricity Bill or Rent Agreement for residential proof
  • Digital Signature Certificate (DSC)

Advantages of a Section 8 Company

  • No minimum capital is required to set up this company
  • There is no restriction on transfer of ownership of these companies
  • Company’s existence is difference from its members. On a company can be sued by any creditor but not on its members.
  • This company can get more tax benefits than others. Section 80 G offers income tax exemptions as incentives for donation made to charity organizations.
  • These companies do not have to pay any stamp duty.
  • It is not mandatory for the Sec 8 company to write the words “Limited” or Private Limited” at the end of its name.

Procedure for Section 8 Company Registration

A non-profit company can be registered as a section 8 company of the companies act 2013. These companies are established with the aim of social welfare.These organizations can be registered as a society, Trust or a section 8 company. The following steps are to register a non-profit organization:

Fill in the form provided for the registration of a no-profit organization.

Identifying the minimum 2 directors and 2 shareholders

It is mandatory for any Section 8 company to have at least 2 operators and shareholders to register. Shareholder and director can also be same person.

Get Digital Signature Certificate (DSC) of all directors and promoters     

List of documents is given Below

  • PAN Card
  • Aadhar Card
  • Passport size photo of all directors
  • Electricity Bill or Rent Agreement
  • Bank account Statement 1st page (signed by the bank)
  • Application form filled and signed
  • Photo ID card issued by any government authority bearing the signature of the individual.

Get directors identification number (DIN) of all proposed directors

 The DIN is an essential document for company registration. The following documents are required for the DIN:  

  • Electricity bill or
  • Bank statement copy or
  • Gas bill or
  • Mobile Bill or
  • Any other utility bill
  • Copy of PAN self attested
  • Copy of Passport

Name Approval

For the registration of a non- profit organisation, it is mandatory to determine its name. First of all, some names have to be selected by the directors. This name should not be similar to any other company or firm name only then this name will be recognised.

Selecting head office location

First of all it is necessary to have a proper address for the registered office of the Section 8 Company.  The registration of companies will send to the correspondence office address.

Execution of company registration documents

after the name of the company is approve the company corporation documents are executed by the promoters in the prescribed format.

Submission of company registration documents to the ROC (Registrar of companies)

after the memorandum of association (MOA) and article of association (AOA) are ready the company should be submitted to the rock centre for registration.

Allocation of corporation identification of Incorporation

the ROC will register the company after due verification of MOA( Memorandum of Association), AOA (Article of association) and other details and will issue the certificate of Incorporation(COI). The central ROC will also allocate a corporate identification Number (CIN) to the company that is registered. The COI is now issued by the ROC in digital form with the digital certificate.

How Can Dial on Financial Service Help You?

Dial on financial services helps you in preparing all the documents of company registration and in the company formation. We are providing you all the facilities from company registration to company management. We will register your company with the company process and the new company building process.

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