Section 8 Company Registration
Ideal business structure for NGO’s and Non-Profit Organizations
Starting At Rs. 12,999
(Takes < 20 days)
Section 8 Registration Online
Section 8 Registration Online
- Copy of PAN Card
- Aadhaar Card
- Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
- 2 Passport Sized Photographs
For Registered Office
- Ownership Proof (House Tax etc.)
- Utility Bill (Electricity Bill, Gas Bill)
- NOC(from the owners – of the premises is rented)
Benefits of Section 8 Company Registration
Still, certain exclusions and advantages have been accommodated to an “NGO or an NPO” under section 8 of the Companies Act 2013. The donors contributing towards a Section 8 Company are eligible to confirm the Tax Exemption against these gifts.
Some of the advantages are:
- Distinct Legal Identity: A Section 8 Company is a separate legal entity and is different from it’s members. It’s legal standing is not the same as it’s individuals. The Company has a never-ending presence, alongside having organized operations and greater adaptability.
- Zero Stamp Duty: A Section 8 Company is excluded from the necessity of paying stamp duty on both “MoA and AoA” of the private or public limited organization, which is relevant for enrollment of other sorts of company structures.
- No Minimum Capital Requirement: No base capital limit has been referenced for a Section 8 Company in India. Also, the capital structure can be changed at any phase according to the growing necessities of the company. This suggests that it may be formed without any share capital. The funds necessary for carrying the business operations can be brought in the form of donations and/or subscriptions from members and the general public.
- Name: A “Section 8 Company” does not need to add Limited or Private Limited, to it’s legal name. It may be enrolled with names like “Foundation, Association, Society, Council, Organization, Club, Charities, Academy, Institute, and Federation.”
- CARO: Requirements of Companies Auditor’s Report Order or CARO do not apply to this type of company.
- Tax Benefits: Many tax benefits are granted to Section 8 Companies in India.
- Credibility: Section 8 Companies are more dependable than any other type of altruistic associations. They are represented by the Companies Act and are managed carefully. For example, the necessity of a required yearly review, or the “MOA and AOA” can’t be modified at any stage or circumstance.
- Exemption to the donors: Those donating to a Section 8 Company are eligible for tax exemptions under section “12A and 80G” of the Income Tax Act.
- Membership:An enlisted partnership firm can turn into a member in it’s individual capacity and acquire a Directorship.
“LegalRaasta” offers to assist you in all the matters of company registration. Let our expert team handle the complex procedure of “completing papers, selecting and searching availability of name, logo or trademark designing, trademark registration, etc.” While you can concentrate on matters of business operations requiring your attention. We will stand by you through each and every stage of its incorporation. For any queries on related topics, you can consult our experts’ team.
Our package includes:
DIN for 2 Partners
Digital Signature For 2 Directors
Name search & approval
Company Pan Card
Process of Section 8 Company Registration
Step 1: Get Registered with LegalRaasta
Step 2: Get DIN & DSC
Step 3: Name Approval
A maximum of 2 names is to be proposed, initially, in Form INC-1. If rejected 1 resubmission is allowed. Both times in separate formats.
Step 4: Apply for License & COI
COI or Certificate of Incorporation is proof that the company has been created. The unique CIN (Company Identification number) is also mentioned in this.
Step 5: Your Section 8 Company is now operative
Donations/Funding of Section 8 Company
Section 8 Company is not allowed to raise capitals by way of deposits but they can accept donations from the general public. Below are some of the ways by which it can raise funding:
- Foreign Donations: Foreign donations are allowed only when FCRA (Foreign Contribution Regulation Act, 1976) registration has been taken. FCRA license can only be applied after 3-years from the date of registration. However, if some really urgent foreign donations are necessary, then you may apply for prior permission from the commissioner.
- Equity Funding: A “Section 8 Company” can also raise funds by issuing new equity shares at a higher value.
- Domestic donations: There is no limitation to domestic donations. But to avoid money laundering cases, a proper system must be laid down to keep them in check.
The name of your Section 8 Company is the first impression to the world. It’s selection, therefore, is very important. It should stand out, yet be easy to remember, attractive, relevant, and indicative. Here are some points you can keep in mind when choosing the name of your company.
The name of your “Section 8 Company” shall include the words “Association, Federation, Chambers, Confederation, Council, Electoral trust Foundation, Forum, and other such words.” But there is no need to add the word Limited or Private Limited to its name
The name of your Section 8 Company should indicate the principal objects of the Company as set out in its “MoA”. For example, “Aware Health and Research Foundation or Nagarjuna Agricultural Research and Development Institute” are Section 8 Companies. And their names indicate the kind of work undertaken by them. This helps in branding and goodwill.
The proposed name should not fall in the range of undesirable names as specified in Rule 8 of Companies (Incorporation) Rules, 2014. The name of your section 8 company should not be abusive, against the customs and beliefs of any religion, and it should not contain words or phrases which are used as a slur and are offensive to a particular group of people.
Short & Simple:
The name should be brief and not too long. Moreover, it should be easy to pronounce. A person should be able to recall the name.
You are not allowed to name your Company to be exactly the same or identical as of an existing company name or trademark or for which a trademark has been applied. At “LegalRaasta”, you can check if the name which you are proposing matches someone else’s or not.
Every name need not indicate the objects of the company, compulsorily, but when there are some indication of objects in the name, then it shall conform to the objects mentioned.
|INC-1||To apply with the ROC for Name Approval.|
|INC-7||Application for Incorporating the Company|
|INC-8||Declaration to Apply for PAN & TAN|
|INC-9||An affidavit from each Director and subscriber of the MoA|
|INC-12||This is to apply for the issuance of License to operate as a Section 8 Company.|
|INC-13||Memorandum of Association (MoA)|
|INC-14||Declaration from a practicing Chartered Accountant or Company Secretary|
|INC-15||Declaration by each Subscriber of MOA (On duly notarized Non- judicial stamp paper of Rs. 100/-)|
|INC-16||License to operate as Company under Section 8 of the Companies Act, 2013|
|INC-22||Notice of Location of the registered office|
|DIR-2||Consent of Directors to act on behalf of the Company|
|DIR-3||Application to ROC to get DIN|
|DIR-12||Appointment of Directors of the Company|
In case of revocation, the company may get wind-up. Or it may be simply asked to change its name by adding either “Private Limited or Public Limited”.
And the assets remaining after clearing debts and liabilities of such a Company shall be transferred to some other Section 8 Company having similar objects.
If the operations of the Company are found to be conducted fraudulently or in violation of the objects of the Company or unfavorable to public interest then, also, the license can be revoked.
If a company defaults in complying with the provisions of the Act, then it shall, without prejudice to any other action under the provisions of this section, be punishable with a fine which shall not be less than Rs.10 lakhs and may get extend to even Rs.1 crore. The Directors and all other officers of the company, found in default, shall be punishable with imprisonment for a term which may extend to 3-years, or with a fine of not less than Rs.25, 000 that too may extend to Rs. 25 lakhs, or both. Provided that it is proved that the operations were conducted fraudulently.
Then every officer in default shall be liable for action.
Any such order shall not be passed unless the company has been given a reasonable opportunity of being heard.