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SECTION 8 COMPANY REGISTRATION
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- SECTION 8 COMPANY REGISTRATION
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in just 15,000/- Keynotes on Section 8 Company Registration
A Section 8 company is a non-profit organization in India, similar to a trust or society, established under the Companies Act, 2013. Its primary objective is to promote activities related to social welfare, education, art, science, charity, religion, and other charitable causes, contributing to the overall development and betterment of society. These companies are founded by individuals or groups who do not seek profit.
A Section 8 company is authorized to operate across India and is registered with the Ministry of Corporate Affairs for charitable purposes. At Law Sarathi, we streamline the registration process for Section 8 companies, as well as other business setups like private limited and public limited companies.
Our team of highly skilled professionals is well-versed in addressing the legal requirements for different types of businesses. We assist entrepreneurs in setting up their Section 8 company, ensuring a quick and efficient registration process. Contact us for expert guidance on the online registration process, fees, and how we can help you get started swiftly with the assistance of our experienced consultants.
Looking to establish a Section 8 company? Law Sarathi offers top-tier legal and accounting services to help you get started. Our streamlined process ensures that your company registration is completed within just a few working days, providing you with all the necessary information and requirements.
Alternatively, under the Trust Act of 1882, an NGO can be registered as a trust, or as a society under the Societies Act of 1860. Once your Section 8 company is registered, it can operate across India, offering the flexibility and credibility needed to pursue your charitable objectives.
A Section 8 company is a non-profit organization dedicated to social work for the betterment of society and the nation. Here are the steps involved in the Section 8 company registration process:
The first step is to acquire a DSC for all proposed directors. The DSC is required to sign documents electronically and is issued by a certifying authority. All submitted forms must be self-attested.
Required Information:
Section 8 companies must include specific phrases in their names, such as society, foundation, council, association, club, academy, charities, federation, organization, chamber of commerce, institute, or development.
Once the digital signature and name are approved, we will prepare all necessary documents, including the directors’ and shareholders’ declaration sheets, Articles of Association (AoA), Memorandum of Association (MoA), and the subscription sheet for their acceptance.
After the name is approved, an application for a Section 8 license must be submitted to the Regional Director of the MCA. The director will review the company’s plans and objectives, and the license is usually granted within 15 days, allowing the Section 8 company to begin operations.
Once the license is obtained from the Regional Director, the Section 8 incorporation application, along with necessary documents, must be filed with the Registrar of Companies (ROC) through the MCA portal. Upon verification, the ROC will issue a Certificate of Incorporation, along with a Company Identification Number (CIN).
After receiving the license, the Articles of Association (AoA) and Memorandum of Association (MoA) must be drafted. The MoA outlines the company’s purpose, and the AoA specifies the rules and by-laws for the company’s operations.
It is recommended to apply for PAN, TAN, and open a bank account while completing the registration process to ensure smooth operations.
Under the Companies Act 2013, there are a number of considerable benefits to register a NGO or NPO under Section 8. Let us follow them :
Tax Benefits –
Under the Section 8 Company in India, a number of tax advantages are there.
There is no minimum capital –
There is no need of any minimum capital for the company registration
Distinct Legal Identity –
This type of company includes a separate legal unit. It reserves an identical legal characterises from the members.
There is not any Stamp Duty –
Stamp duty is not imposed on the incorporation of Section 8 Company because it violates the provision of the payment of stamp duty on the AoA and MoA of the private limited company.
Donators are exempted –
If the Section 8 Company is registered under section 80G, the donators get exemption under its provisions.
Credibility –
It includes enhanced credibility compared to any other type of a charitable organization. It follows strict provision of the Companies Act that needs a compulsory audit each year.
The following are the eligibility criteria for registering a Section 8 company:
Directors and Shareholders: At least two individuals must act as directors or shareholders and must meet all compliance requirements for registration.
Eligible Entities: Individuals, limited companies, or Hindu Undivided Families (HUF) are eligible to initiate a Section 8 company registration.
Objective: The company’s objective should focus on promoting social welfare, sports, education, the advancement of art and science, and providing financial assistance to low-income individuals.
Resident Director: At least one of the directors must be a resident of India. Organizations can also be members of registered Section 8 companies.
No Salaries for Members: Founders, members, and directors of the company are not allowed to receive salaries in the form of cash or any other kind.
Use of Surplus: Any surplus generated must be used to achieve the company’s primary goals.
Project Plan: The company must have a detailed project plan and clear objectives for the next three years.
No Profit Distribution: Profits cannot be distributed among the directors or members, either directly or indirectly.