We deliver Section 8 Company Registration in Patna Bihar Ranchi Jharkhand. Section 8 company also known as NPO company, is registered under Company Act, 2013 with purpose of spending its profits on its objective only.
Section 8 Company Registration
Section 8 Company is a company which is registered for charitable or not-for-profit purposes. This Company is, however, similar to a Trust or Society; an exception is that a Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”whereas the Societies and Trusts are registered under the State Government regulations. This, however, has various advantages when it is compared to Trust or Society and it also has higher credibility amongst the donors, Government departments, and other stakeholders. Further, the key feature of this Company is that the name of the Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be.
According to section 8(1)(a), (b) and (c) of the Indian Companies Act, 2013, a section-8 company can be established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objectives of the company and no dividend is paid to its members.
Section 8 of the Companies Act, 2013
For a section-8 company, the main instrument is a Memorandum and articles of association (no stamp paper required)
A section-8 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee and should preferably be Indian nationals.
The Procedure for Section 8 Company Registration
Documents required for Section 8 Company Registration:
- Identity Proof: the Copy of the Permanent Account Number (PAN) of all the Directors/Promoters which is mandatory
- Address Proof: A Copy of a valid Passport/Driving Licence/Aadhar/Telephone Bill/Electricity Bill which is not older than 2 months
- A Latest passport size photographs of all the Directors/Promoters
- A Rent Agreement or a Leave & Licence Agreement, if the registered office premise is taken on rent
- The Utility Bills of the proposed registered office
- The Consent to act as a Director in Form DIR-2
- The Directors Directorship details in other Companies/LLPs, if any.
- The second step is to apply for the DSC which is required for filling the forms electronically to the Ministry of Corporate affairs which can be obtained from certified agencies.
- The businessman is then required to Obtain the Digital Signature Certificate (DSC) for the proposed Directors not having the Directors Identification Number (DIN). Obtaining the DIN from the Ministry of Corporate Affairs by filing Form DIR-3, if the businessman does not have
- the most important step is to apply for the name of the company which is a crucial step in company registration.
- The next step is to draft the Memorandum of Association and Articles of Association of the proposed company in Form INC – 13.
- The next step is to obtain the license under section 8 of new companies with a charitable objective. The person who is desirous to incorporate a company under section 8 is required to file an application in form INC 12 along with the prescribed fees to register for a license.
- Certificate of incorporation – If after the filing of the requisite forms that is INC 7, INC 22 and DIR 12 for the incorporation with the registrar of the companies along with the prescribed fees, ROC gets satisfied with the contents of the documents that are filed. Thus after that, the company will issue Certificate of Incorporation in Form INC 16.
There are thus many privileges and the advantages under the Company Law to Section 8 companies:
Forming of Section 8 company is an easy process
- The Minimum paid-up capital is not required
- It is exempted from Stamp duty registration
- Any of the registered partnership firms can be a member in its individual capacity
- The Tax deductions benefits u/s 12AA and u/s 80G of Income Tax Act to the donors of the company
- It has Greater flexibility
It generally takes around 30-45 working days to register a Section 8 company. This duration can, however, be lesser in case the Regional Director approves the application earlier.
- How much capital is required?
As per Companies Act, 2013, there is no such restriction regarding capital to incorporate a company. This limit can be increased at any stage of the business in future as the business grows.
- Who can be a director of a Section 8 company?
The director required must be a natural person and above 18 years of age. He may or may not be a resident of India. Even foreign nationals can become directors in Indian Section 8 company.
- Can section 8 company distribute its profit to anyone?
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