Section 8 Company

cropped-registration-section-8-company-1-1024x576-1

Section 8 Company

  • Company Registration
  • Current Account opening
  • GST Registration

Market Price – Rs: 21,899 

OnlineTaxSeva Price- Rs: 15,599 (All Inslusive)

Pay Now

“Note: Please talk to an advisor first and get all doubts resolved before proceeding with payment. Once we receive the payment, our team will reach out to you and work on the service.”

 

Documents required For Section 8 Company

Recent Utility Bill
Business Place
Aadhar Card

Aadhaar is mandatory for Indian Directors

Section 8 Company Registration

The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. These companies also apply their profits towards the furtherance of their cause and do not pay any dividend to their members.

These companies were previously defined under Section 25 of Companies Act, 1956 with more or less the same provisions. The new Act has, however, prescribed more objectives that Section 8 companies can have.

Here are some characteristics of a Section 8 Company:

  1. Non-profit objective: The primary objective of a Section 8 company is to promote social welfare, and not to earn profits.

  2. No dividend distribution: Section 8 companies cannot distribute dividends to their members. Any profits earned must be used for the promotion of its objectives.

  3. Limited liability: Section 8 companies enjoy the benefit of limited liability, which means that the personal assets of the members are protected in case of any legal disputes.

  4. No minimum capital requirement: Unlike other types of companies, Section 8 companies do not have a minimum capital requirement for registration.

  5. Perpetual succession: Section 8 companies have a perpetual succession, which means that the company will continue to exist even if the members or directors change.

  6. Tax exemptions: Section 8 companies are eligible for tax exemptions under the Income Tax Act, subject to certain conditions.

Section 8 Company Registration

  1. Obtain Digital Signature Certificate (DSC): The first step in the registration process is to obtain a digital signature certificate (DSC) for all the proposed directors of the company.

  2. Apply for Director Identification Number (DIN): The next step is to apply for a Director Identification Number (DIN) for all the proposed directors of the company.

  3. Name Reservation: After obtaining DSC and DIN, the next step is to apply for the reservation of the company name through the MCA portal.

  4. Drafting of Memorandum of Association (MOA) and Articles of Association (AOA): Once the name is approved, the MOA and AOA of the company have to be drafted and submitted to the Registrar of Companies (ROC).

  5. Registration: After the MOA and AOA are approved, the company registration process can be completed by submitting the necessary documents to the ROC along with the registration fee.

  6. Apply for PAN and TAN: Once the company is registered, the next step is to apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.

Section 8 Company FAQ’s

1. What is a Section 8 company?

A Section 8 Company is a type of non-profit organization that is registered under Section 8 of the Companies Act, 2013 in India. These companies are formed for promoting commerce, art, science, research, education, social welfare, religion, charity, or any other similar object. Unlike other companies, the primary objective of Section 8 companies is not to earn profits but to promote social welfare and make a positive impact on society.

2. Can a Section 8 company make a profit?

Without a doubt, organisations covered by Section 8 can make money. Companies in the section 8 category include those that offer services to those with low incomes. They can use a range of strategies, such as investments, funding, contributions, etc., to make money.

3. What is difference between NGO and Section 8 company?

NGOs and Section 8 companies are both organizations established for social or charitable purposes. However, NGOs are registered under the Societies Registration Act or the Indian Trusts Act, and are typically owned by a group of individuals who share a common objective, while Section 8 companies are registered under the Companies Act, and are owned by shareholders who have invested in the company. NGOs are non-profit organizations, while Section 8 companies can generate profits that are reinvested in the organization. NGOs are governed by a board of trustees, while Section 8 companies are governed by a board of directors. NGOs are eligible for tax benefits as charitable organizations, and Section 8 companies are also eligible for tax benefits, provided they meet the government’s criteria.

4. Do I need to be physically present to form a Section 8 company?

No, you won’t need to show up in our office or any other office to register a section 8 company. Any paperwork may be scanned and emailed to our office. Moreover, some papers will need to be couriered to our office.

5.What are the documents required for registration?

Every potential Director of the Section 8 Corporation must provide identification and evidence of residence. PAN Cards are required for Indian citizens. A No Objection Certificate for having the registered office in his or her premises is also required from the landlord of the registered office space, along with identification and address verification.

6. How long does it take to incorporate a business?
In 20 to 30 days, Etailedindia.com may establish a Section 8 company. The length of time it takes to register will depend on how quickly the customer submits the necessary paperwork and how quickly government approvals are granted. Please pick a distinctive name for your company and make sure you have all the necessary paperwork before beginning the registration procedure to guarantee quick registration.

7.For how long is the Company’s registration valid?
Once formed, a company will continue to operate and exist as long as the yearly compliances are timely satisfied. The company will become a dormant company and may eventually be stricken from the register if yearly compliances are not met. 

8.For a maximum of 20 years, a struck-off Corporation may be reinstated.8. What exactly is a digital signature certificate?
When sending or signing documents electronically via the Internet, a digital signature proves the sender’s or signee’s identity. The Directors are required by the Ministry of Corporate Affairs (MCA) to digitally sign certain application forms. Thus, each Director of a proposed Section 8 company must possess a digital signature.

9. What is the Director Identification Number?
An individual identifying number called a “Director Identification Number” is given to each Director, both current and potential, of a company. A Director Identification Number is required for all currently serving or aspiring Directors. There is only one Director Identification Number allotted to each individual, and it never expires.

10.How many individuals must be registered in order to form a private limited company?
For a section 8 corporation to be registered in India, a minimum of two persons are needed.

11.Are foreign nationals or NRIs permitted to participate as directors in Section 8 companies?
After receiving a Director Identification Number, an NRI or foreign national may act as a director in a Section 8 company. Nonetheless, at least one director on the board of directors needs to be an Indian resident.

12.What qualifications are needed to become a director?
The Director must be a natural person who is at least 18 years old. Regarding citizenship or residence, there are no restrictions. As a result, directors of an Indian Section 8 Corporation might even be foreign nationals.

13.Do you need an office to launch a Section 8 company?
A location in India where the company’s registered office will be located is necessary. The location where communications from the MCA will be received may be commercial, industrial, or residential.