Not For Profit Firms. Structured.
@ Rs. 18,799 *
*Subject To Change On Market Conditions
Overview
Register A Section 8 Company In India
Any not for profit organization or an NGO can register itself as a trust by executing a trust deed or as a society under the Registrar of Societies, or as a not-for-profit company under Section 8 Company of the Companies Act, 2013. A Section 8 Company is a special entity and the same as a Section 25 company under The Old Companies Act, 1956. Under The New Companies Act 2013, Section 25 Companies have now been renamed as a Section 8 Company.
As per section 8(1a, 1b, 1c) of the Companies Act, 2013, “A Section 8 company can be established for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”. The Act further clarifies that the Section 8 companies can pursue the above motives, subject to the condition that it “Intends to apply the profits, if any, or other income in promoting its objects and intends to prohibit the payment of any dividend to its members”. In simpler words, a Section 8 Company has to endorse a public cause and the proceeds created by the entity have to be solely used to support the stated public cause(s).
Procedure of Incorporation
The registration of a Private Limited Company and Section 8 Company are very similar. A minimum of 2 Directors is needed to incorporate a Section 8 company. One of the Directors has to be an Indian Citizen and an Indian Resident, whereas one or more than one person acting as the Director can be an Indian National or a Foreign National. In addition to the required number of members, the address of a registered office in India itself would be needed for the registration of a Section 8 Company. Finally, the Section 8 company would be subject to the following terms and conditions, stating that it.
- Includes in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other public cause.
- Intends to apply all of its profits if any, or other income in promoting its objects.
- Intends to prohibit payment of dividend to the members in any form, the Central Government may, by license issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, and thereupon the Registrar shall, on the application, in the prescribed form, register such person or association of persons as a company under this section.
- The company registered under Section 8 of the Companies Act, 2013 shall enjoy all the privileges and be subjected to all written obligations of limited companies.
Procedure
01
Apply for a Company Name
File an application for your business’ name as a Section 8 Company. You can get approval from the company SPICE + PART A Application procedure and then proceed with registration. Alternatively, you can reserve your company’s name through the SPICE incorporation. If the first name is rejected due to resemblance or an already existing name, one of the two alternative suggestions given will be chosen.
02
Prepare the forms and file the company incorporation documents with the MCA
These essential documents consist of a Simplified Proforma for Incorporating a Company (SPICE+), the Memorandum of Association, Articles of Association labeled as SPICE+ Part B, MoA, AOA, AGILE PRO S & INC 9 respectively. All the aforementioned need to be attested or executed along with the digital signatures of the directors and shareholders.
03
Processing of the Documents
The Company Registration Centre or CRC will process these documents and duly approve of the registration, upon which the following will be issued:
- Certificate of Incorporation
- DIN allotment
- Mandatory issue of PAN
- Mandatory issue of TAN
- Mandatory issue of EPFO registration
- Mandatory issue of ESIC registration
- Mandatory issue of Profession Tax registration (Applicable States)
- Mandatory Opening of Bank Account for the Company and
- Allotment of GSTIN (if so applied for)
Documentation
To have your business registered as a Section 8 company, the following documents are to be furnished with digital signatures of the concerned parties.
Documents Signed By Shareholders
- Application for Digital Signature Certificate (DSC)
- INC-9 Declaration by the Director and Shareholders
- INC-15 Declaration by the Director and Shareholders
Documents Signed by all directors
- Consent to Act as Director: Form DIR-2
- Details of DIN
- Declaration of DIN (If DIN is allotted previously)
Address of the Registered Office
- Address Proof: Electricity bill / Tax Paid receipt
- No objection letter from the owner of the company property if leased
ID & Address from Directors and Shareholders
Shareholders and Directors have to submit their identity proof and latest address proof
- Acceptable Documents
- Primary ID: Permanent Account Number (PAN) (Mandatory in case of Indian Nationals) PASSPORT (Mandatory in case of Foreign Nationals)
- Additional ID: Aadhaar Card or Driving License or Passport or Voter ID
- Latest Address Proof: Telephone Bill, electricity bill, bank statement or bank passbook with the latest entry not older than 60 days
Additional Documents
The following documents may be required for registration on a case to case circumstance:
- NOC for the usage of a brand name from its trademark owner
- Resolution and NOC from an existing Company / LLP for the use of a name similar to their company
- Declaration for complying with sectoral regulatory compliance
Certificate Of Commencement
The stakeholders need to apply for the Certificate of Commencement of Business within a period of 180 days of receiving the Certificate of Incorporation.
