What all you get
2 Digital Signature
PF & ESI
Certificate of Incorporation
2 DIN
PAN & TAN
E-MOA & E-AOA
Professional Tax
CA ASSISTANCE
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Sec 8 Company Registration
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OUR PROCESS FOR
Section 8 Company Registration
Step-1
FILL FORM
Step-2
DISCUSS WITH OUR EXPERTS
Step-3
SHARE DOCUMENTS
Step-4
DELIVERY OF CERTIFICATE
OUR PROCESS FOR
Section 8 Company Registration
Step-1
FILL FORM
Step-2
DISCUSS WITH OUR EXPERTS
Step-3
SHARE DOCUMENTS
Step-4
DELIVERY OF CERTIFICATE
What is
Section 8 Company ?
A Section 8 Company is an organization that has the sole objective of promoting art, commerce, science, education, sports, social welfare, research, charity, religion, environmental protection, or any such non-profit objective. In this type of company, the profits are used exclusively for promotion and development of company’s objectives.
The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefitted out of those profits.
A Section 8 company is similar to a Trust/NGO, with the difference being that it is registered with the Registrar of Companies and is mostly the preferred form for obtaining foreign donations under FCRA.
There are certain legal restrictions for Section 8 Companies
Any individual, company or NRI can become a member of a Section 8 Company and There is no minimum capital requirement for Section 8 Company registration.
Profits of the company can only be used to promote the company’s objectives.
Profits cannot be distributed to the members of the company by way of dividend or any other means.
Benefits of
Section 8 Company registration
Tax Exemptions
Section 8 companies are eligible for various tax exemptions under the Income Tax Act, 1961, including exemption from income tax and donations made to them are also eligible for tax deduction.
Limited Liability
The members of a Section 8 company have limited liability to the extent of their contribution to the company. This means that their personal assets are protected in case of any legal issues or financial losses.
Credibility
Section 8 companies have more credibility and are more trusted by donors and members compared to other non-profit organizations due to their formal registration under companies Act 2013 and stringent compliance requirements.
Perpetual Existence
Section 8 companies have perpetual existence, which means that they can continue to operate indefinitely, regardless of the death, retirement, or insolvency of any member.
Easy Transfer Of Ownership
Ownership of a Section 8 company can be easily transferred by transferring the membership, making it easier to manage and run the organization.
Easy Access To Donations
Easy Access to Grants and Donations including foreign donations under FCRA.
Benefits of
Section 8 Company registration
Tax Exemptions
Section 8 companies are eligible for various tax exemptions under the Income Tax Act, 1961, including exemption from income tax and donations made to them are also eligible for tax deduction.
Limited Liability
The members of a Section 8 company have limited liability to the extent of their contribution to the company. This means that their personal assets are protected in case of any legal issues or financial losses.
Credibility
Section 8 companies have more credibility and are more trusted by donors and members compared to other non-profit organizations due to their formal registration under companies Act 2013 and stringent compliance requirements.
Perpetual Existence
Section 8 companies have perpetual existence, which means that they can continue to operate indefinitely, regardless of the death, retirement, or insolvency of any member.
Easy Transfer Of Ownership
Ownership of a Section 8 company can be easily transferred by transferring the membership, making it easier to manage and run the organization.
Easy Access To Donations
Easy Access to Grants and Donations including foreign donations under FCRA.
List of Documents Required for
Sec 8 Company Registration
Below are the documents required for the process of Sec 8 Company Registration
- Director’s Photo
- Director’s Voter ID, PAN and Aadhaar
- Latest Bank Statement with Address
- Rent Agreement or Ownership Proof
- Latest Electricity Bill
- NOC from Owners (If not rented)
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN) if any proposed director already having
- Declaration by the promoters
- Affidavit from the promoters
Important Points to consider for
Sec 8 Company Registration
Below are the Important points to consider for the process of Sec 8 Company Registration
- Any individual, company or NRI can become a member of a Section 8 Company
- There is no minimum capital requirement for Section 8 Company registration
- Minimum 2 shareholders and directors required (Director and Shareholder can be same person)
- Authorised share capital can be as low as Rs 10,000. No required to maintain a minimum paid up capital.
- DIN ( Director Identification Number) for the Director (If already having)
- One witness for MOA and AOA subscriber
- All KYC documents should be self attested and Electricity bill/telephone bill and Bank statement should not be more than 30 days old.
- NGOs operating as Section 8 entities are not obligated to affix terms like private limited or limited in their name.
WHY COMPLIANTO
ACCESSIBILITY
We provide convenient communication channels for clients to reach out and get support when needed.
Transparent Pricing
We offer transparent and affordable pricing, without any hidden fees or charges, making it easier for clients to budget and plan. (Govt. fees charge on actuals)
Confidentiality
Our services will be executed through confidentiality agreements . Your company’s information and trademarks will be kept secret with us
Expertise
We have a team of qualified and experienced professionals who can provide high-quality financial and business advisory services to clients.
Personalized Services
Our Service solutions can be tailored to the unique needs of each client, rather than a one-size-fits-all approach.
Prompt Response
We provide regular updates and proactive communication to clients, keeping them informed and involved in the decision-making process.
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Sec 8 Company Registration
Have A Question?
FREQUENTLY ASKED QUESTIONS (FAQs)
Rule 8(7) of the Companies (Incorporation) Rules, 2014 specifies that the name of the Section 8 Company shall include the words foundation, forum, association, federation, chambers, confederation, council, electoral Trust, etc.
A Section 8 company registers under Section 8 of the Companies Act, 2013 in India. It establishes for promoting charitable or social objectives such as education, sports, arts, science, research, religion, or environmental protection.
The process of registering a Section 8 company involves the following steps:
- Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN).
- Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
- Apply for name availability.
- File an application for incorporation along with the required documents.
- Obtain the Certificate of Incorporation (COI) from the Registrar of Companies (ROC).
There is no minimum capital requirement for Section 8 Company registration.
An existing Section 8 Company can be converted to any other form of business by applying before the Regional Director. Upon approval, the company will cease to enjoy the privileges of a Section 8 Company and will have to submit the necessary documents (if any) to change its structure.
Some of the compliance requirements for a Section 8 Company in India are:
- Filing of annual returns with the Registrar of Companies (ROC)
- Maintenance of proper books of accounts and records
- Appointment of an auditor
- Conducting annual general meetings (AGMs) and board meetings
- Compliance with income tax and other applicable laws
Yes, a Section 8 Company can carry out commercial activities. However, the profits earned from such activities must be used for promoting its charitable or social objectives.
Profit or Income of Non Profit Company can only be used for promotion of the charity work in which it is involved. Even declaration of dividend or distribution of profit to its promoters is not allowed.
Both NGO/Trust and Section 8 company are types of non-profit organizations and are established for promoting charitable or social objectives. The choice between the two depends on the specific needs and objectives of the promoters.
NGO/Trust:
- NGO/Trust can be registered under various laws, such as the Indian Trusts Act, 1882, or the Societies Registration Act, 1860, depending on the state in which it is established.
- NGO/Trust can be established with fewer compliance requirements compared to Section 8 companies.
- NGO/Trust can have greater flexibility in terms of its operations and management.
- NGO/Trust may not have the same level of legal recognition and credibility as a Section 8 company.
Sec 8 Company:
- Section 8 company is registered under the Companies Act, 2013 and has more stringent compliance requirements compared to NGOs or Trusts.
- Section 8 company has greater legal recognition and credibility compared to NGOs or Trusts.
- Section 8 company has limited liability for its members, which means that their personal assets are protected in case of legal issues or financial losses.
- Section 8 company is eligible for tax exemptions and access to grants and donations.
In conclusion, the choice between an NGO/Trust and a Section 8 company depends on the specific needs and objectives of the promoters. NGOs/Trusts may be more suitable for those who require greater flexibility in terms of operations and management, while Section 8 companies may be more suitable for those who require greater legal recognition and credibility, and access to tax exemptions and grants.
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