Register Your Section-8 Company

Know-about Section-8 Company

In you are planning to open a Non-profit making company, charity, trust, etc. business for poor and needy people you can do it by Section 8 company registration as per companies Act, 2013 with the main object,for promoting research, social welfare,provide education, employment, food, health, commerce, art, science, sports and protection of the environment etc. If you want to register Trust or Society then you have to follows state laws which are stringent to section 8 company as it involves central government approval through Ministry of corporate affairs (MCA).

What are the features of Section-8 company?

• The main object of section 8 companies to promote all of the above-mentioned fields;
• No dividend is paid to its members;
• The company’s profits must be used to promote all the above-mentioned activity and company cannot use this profit for their personal use.
• It also has higher credibility amongst donor, government departments and other stakeholders.
• In the name of the section-8 company cannot use word Limited or Private Limited and must use words like Foundation, Academy, Association, Federation, Chambers, Confederation, Council, Electoral Trust in accordance with Rules as prescribed by Companies (incorporations) Rules, 2014.

What are the privileges are provided under company Law?

• No minimum capital requirement;
• Fund raising for NGO is high;
• Support of Government departments;
• Credibility in publicis high
•  No tax liability is applicable for charity;
• No stamp duty is payable;
• Minimum no. of director is 2 and 2 shareholders
• It is a separate legal entity and also has perpetual existence.

What are the requirements to register a section-8 company?

1. Minimum 2 shareholders for private limited or 7 for Public Limited.
2. Minimum 2 directors for private limited and 3 for Public limited.
3. No Minimum capital required
4. Directors and shareholders can be same
5. Address proof of applicants like Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement.
6. Pan Card of all applicants
7. Passport size photograph all the directors
8. Address proof where proposed office
9. Specimen Signature.

What is the procedure of Section-8 company incorporation

• DSC/ DIN: First and foremost, step is to apply DSC application and obtain Din (Director Identification Number) by filing DIR-3 for all proposed directors of the company.
• Name Approval: An application for name reservation is apply with Form- RUN (Reserve Unique name) with Central Registration Centre ROC for approval of proposed section 8 company. In this form applicant can give 2 names in order to preference once it is approved is valid for 20 days. Make sure that you have to use words like Charitable, foundation, Forum, Association, Foundation etc.as per above-mentioned said rules.
• Draft of MOA and AOA: After getting name approval the next step is to draft MOA and AOA as it is constitution of the company and internal rules and regulation respectively then filed it with ROC with form-INC-12 for the issuance of license under section 8 of the companies Act 2013 which is grant by central government ROC with following attachment:
• Statement of income and expenditure
• List of directors of the proposed company
• Subscriber page of MOA and AOA
• INC-15 Declaration by subscribers of the MOA
• INC-13 (Memorandum of Association)
• Article of Association
• Application for incorporation: After obtaining license from Central government the next step is to file Spice Form for getting Certificate of incorporation to commence its business and must attach following documents
• Address proof of registered office
• Rent Agreement
• Consent to act as director in form DIR-2
• NOC
• INC-9
• Id proofs and pan card of the applicant.
• Certificate of incorporation: After filing spice form with the department then concerned ROC is satisfied with all the forms, a Certificate of incorporation (COI) is issued by Registrar of company along with (CIN) Corporate Identification Number.