Section 8 Company Registration
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Definition
Forms Required
Features
Includes
Documents
Advantages
Qualification
Donations
Approval
Compliances
FAQ
Section 8 Company
A Section 8 Company is a Company which:
Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
It intends to apply all its profits, income, or other earnings, in promoting these objects.
Pays no dividend or income to its members.
These are restricted organizations, enlisted under the Companies Act, and will be treated as constrained organizations without the expression “constrained” added to their name. They may have been enlisted as private restricted or open constrained organizations.
Area 25 Company (under Companies Act, 1956) is an earlier form. Segment 8 Companies are an authoritative document for Non-Profit Organizations (NPOs) or Non-Governmental associations (NGOs). A Section 8 Company has the power to work anyplace in the nation.
Section 8 Company Registration
The procedure and necessities of a Section 8 Company are actually equivalent to set down for a constrained organization. Counting all the rights and commitments that accompany such a restricted organization. The main perspective where they vary is that a Section 8 Company can't utilize the words "Area 8" or "Constrained" in its name. The way toward enrolling a Section 8 Company is equivalent to fusing a NGO, Trust or Co-usable Society under the Companies Act 2013. An extra necessity is there of looking for a permit from the focal government under Section 8 of the Companies Act, 2013. TThe permit, basically, grants them to erase Private/Public Limited from their name. With this permit, the organization gets qualified for specific exclusions from arrangements of law and have concessions in the charge. In the event that the proposed Section 8 Company has been enrolled as a private constrained then at least 2 advertisers are required. In any case, on the off chance that it is an open constrained Section 8 Company, at that point at least 7 advertisers must be there.
| S.No. | Number | Purpose |
|---|---|---|
|
1 |
INC-1
|
To apply with the ROC for Name Approval.
|
|
2 |
INC-7
|
Application for Incorporating the Company
|
|
3 |
INC-8
|
Declaration to Apply for PAN & TAN
|
|
4 |
INC-9
|
Affidavit from each Director and subscriber of the MoA
|
|
5 |
INC-12
|
This is to apply for the issuance of License to operate as a Section 8 Company.
|
|
6 |
INC-13
|
Memorandum of Association (MoA)
|
|
7 |
INC-14
|
Declaration from a practicing Chartered Accountant or Company Secretary
|
|
8
|
INC-15
|
Declaration by each Subscriber of MOA (On duly notarized Non- judicial stamp paper of Rs. 100/-)
|
|
9 |
INC-16
|
License to operate as Company under Section 8 of the Companies Act, 2013
|
|
10 |
INC-22
|
Notice of Location of the registered office
|
|
11 |
DIR-2
|
Consent of Directors to act on behalf of the Company
|
|
12 |
DIR-3
|
Application to ROC to get DIN
|
|
13 |
DIR-12
|
Appointment of Directors of the Company
|
Legaladvisory features
Procedure For Company Registration
Noise for 2 Partners
Advanced Signature For 2 Directors
Name search and endorsement
MOA/AOA
Enlistment Fees
Organization Pan Card
Documents Required
For Directors/Shareholders
Copy of PAN Card
Aadhaar Card
Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
2 Passport Sized Photographs
One of a kind Component
Name of your organization ought not be indistinguishable or the same to a current organization, business or trademark. You can go to search to confirm if your organization name is the equivalent to other people. You should in a perfect world stay away from plural rendition e.g., “Amazon’s” or changing simply letter Case, dividing or accentuation stamps in a current organization name.
Advantages of Section 8 Company Registration
Being a NPO or Non-benefit Organization doesn’t imply that the Company can’t make a benefit or pay. It just means that the Company can gain salary however the advertisers are not to profit by those benefits. The benefits can’t be dispersed among the advertisers. All wages must be applied to advancing the article.
In any case, certain exclusions and advantages have been accommodated NGO or NPO u/s 8 of Companies Act 2013. Various Tax exceptions are likewise there for such organizations. Indeed, even the benefactors contributing towards Section 8 Company are qualified to guarantee the Tax Exemption against these gifts.
A portion of the focal points are:
Unmistakable Legal Identity:
Section 8 Company has a different lawful element. Not quite the same as its individuals. Its legitimate standing is not the same as its individuals. The Company has an interminable presence. Alongside having sorted out activities and more prominent adaptability.
Zero Stamp Duty:
A Section 8 Company is absolved from the prerequisite of paying stamp obligation on the MoA and AoA of the private or open restricted organization. Which is pertinent for enrollment of different sorts of organization structures.
No Minimum Capital Requirement:
No base capital breaking point has been referenced for a Section 8 Company in India. What’s more, the capital structure might be changed at any phase according to the development prerequisites of the organization. This suggests it very well may be framed with no offer capital. The assets important for conveying the business activities can be brought, later, as gifts and additionally memberships from individuals and the overall population.
Name:
Section 8 Company doesn’t have to postfix Limited or Private Limited, close to its legitimate name. It very well may be enlisted with names that have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation.
CARO
Requirements of Companies Auditor’s Report Order or CARO don’t matter to this kind of organization.
Tax cuts:
For Section 8 Companies in India, many tax breaks are conceded.
Believability
Section 8 Companies are more solid than every other type of magnanimous associations. They are represented by the Companies Act and are managed carefully. For example, the necessity of an obligatory yearly review, or the MOA and AOA can’t be changed at any stage or circumstance. The guidelines on dealing with the benefits and misfortunes of the organization make these organizations dependable.
Qualification
Objects of Section 8 Company must be the advancement of Commerce, Art, Science, Education, Research, Sports, Social Welfare, Religion, Charity, Protection of Environment or any such other item.
The Company expects of the organization is to apply its benefits, assuming any, or other pay in advancing these items.
It plans to disallow the installment of any profit to its individuals.
Other than the conditions set down in its definition over, the accompanying standards must be satisfied too for enlisting a Section 8 Company:
- Enlistment Under: – Companies Act, 2013.
- Permit: –License to be applied to MCA.
- Chiefs: –A Minimum of 2 Directors for a Private Limited Company and 3 Directors for Public Limited Company must be there. The most extreme cutoff is of 15 Directors. Beyond what that can be delegated subsequent to passing an extraordinary Resolution in a regular gathering.
- Indian Resident: – At least 1 chief must be an occupant of India, i.e., have remained in India for an absolute time of at least 182 days in the past schedule year [(Section 149(3)].
- Endorsers of MoA: – If the Company is proposed to be consolidated as a privately owned business or open organization separately, its MoA must have in any event 2 or 3 supporters.
- MoA and AoA: – Decide about the name to be applied for, items to be conveyed by the Company, arranged enrolled office address, number of Directors and advertisers, approved capital, and number of offers to be bought in by every advertiser. They should make reference to the arrangement spread out to meet your social destinations. The ROC (Registrar Of Company) is qualified for get some information about it.
- Starting Capital: – Whatever measure of beginning capital has been proposed for the Company, it must get put resources into the Company inside 2 months.
- Property Management: –The responsibility for property lies for the sake of the Company and it must be sold according to the principles referenced under the Companies Act. (Ex: With the assent of the Board of Directors as a goals).
- Disintegration: –The Section 8 Company might be end up just by adhering to the bye-laws of the general public. Upon disintegration and subsequent to settling all obligations and liabilities, the assets and property of the general public are not to be circulated among the individuals from the organization. Rather, the rest of the assets and property would be given or moved to some other Section 8 Company, somebody that has a comparative item.
- Yearly Compliance: –Annual recording of records, articulations and the profits of the organization with the ROC are important to meet the consistence required.
- Reports: –All the Directors must have their substantial DIN (Director's Identification Number) and DSC (Digital Signature Certificate).
Name Approval
The name of your Section 8 Company is the initial introduction to the world. Its choice, in this manner, is significant. It should stick out, yet be anything but difficult to recollect, alluring, important and demonstrative. Here are a few focuses you can remember for picking a name for your organization.
Addition:
Name of Section 8 Company will incorporate the words Association, Federation, Chambers, Confederation, Council, Electoral trust Foundation, Forum, and other such words. However, there is no compelling reason to include the word Limited or Private Limited to its name
Important:
The name of your Section 8 Company ought to show the chief objects of the Company as set out in its MoA. For instance, Aware Health and Research Foundation or Nagarjuna Agricultural Research and Development Institute are Section 8 Companies. Furthermore, their names show the sort of work attempted by them. This aides in marking and altruism
Hostile:
The proposed name ought not fall in the scope of bothersome names as determined in Rule 8 of Companies (Incorporation) Rules, 2014. The name of your LLP ought not be harsh, against the traditions and convictions of any religion, use slur and foul words or expressions which are utilized as a slur and are hostile to a specific gathering of individuals.
Short and Simple:
The name ought to be brief and not very long. Besides, it ought to be anything but difficult to articulate. An individual should review that name during important issues
One of a kind:
You are not permitted to name your Company that is actually same or indistinguishable from a current organization or brand name or for which a brand name has been applied for. At LegalRaasta, you can check if the name you are proposing matches another person.
Demonstrative:
Each name need not demonstrate the objects of the organization, mandatorily, however when there is some sign of articles in the name, at that point it will adjust to the items referenced.
Compliances
- On the off chance that a Section 8 Company neglects to conform to the legitimate arrangements, at that point the focal government may repudiate the permit gave under this demonstration.
- If there should arise an occurrence of renouncement, the organization may get twisted up. Or on the other hand it might be essentially approached to change its name to include "Private or Public Limited". What's more, the benefits staying in the wake of freeing obligations and liabilities from such a Company will be moved to some other Section 8 Company having comparative articles.
- On the off chance that the activities of the Company are seen as led falsely or in infringement with the objects of the Company or ominous to open intrigue at that point, likewise, the permit can be denied.
- On the off chance that an organization defaults in agreeing to the arrangements of the Act, it will, without preference to some other activity under the arrangements of this area, be culpable with fine which will not be not as much as Rs. 10 lakh and may stretch out to Rs. 1 crore. The Directors and every other official of the organization, found in default, will be culpable with detainment for a term which may stretch out to 3-years, or with fine not be not as much as Rs. 25, 000 and may reach out to Rs. 25 lakh, or both. Given that it is demonstrated that the activities were led deceitfully. At that point each official in default will be at risk for activity.
- Any such request will not be passed except if the organization has been given a sensible chance of being heard.
Frequently Asked Questions
The organization ought to be shaped for the advancement of a social reason. It might be good cause, instruction, industry, sport, and so on. • Income and benefits ought to be utilized for this reason or article as it were. • No profit ought to be paid to its individuals.
FDI (Foreign Direct Investment is permitted, subject to the consistence of FEMA Regulations. Notwithstanding, the equivalent is considered as a Foreign Contribution under FCRA, it tends to be imbued uniquely with earlier consent/enlistment
No. An advertiser of NPOs can’t be utilized as a paid worker of the Company.
Indeed. Area 8 Companies can put resources into different organizations. To meet the targets of its arrangement.
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