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
Being an NPO or Non-profit Organization does not imply that the Company can’t make a benefit or income. It just implies that the Company can produce pay however the promoters are not to profit by those benefits. The benefits can’t be disseminated among the promoters. All incomes must be applied to advancing the article.
Still, certain exclusions and advantages have been accommodated for NGO or NPO u/s 8 of Companies Act 2013. Various Tax exclusions are likewise there for such companies. Even the donors contributing towards Section 8 Company are eligible to confirm the Tax Exemption against these gifts.
Some of the advantages are:
- Distinct Legal Identity: Section 8 Company has a different legal element. Not quite the same from its individuals. Its legal standing is not the same as its 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 the MoA and AoA of the private or public limited organization. Which is relevant for enrollment of different 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 might be changed at any phase according to the growing necessities of the company. This suggests that it very well may be formed without any share capital. These assets vital is necessary for conveying the business tasks that can be brought, later, in the form of donations and/or subscriptions from individuals and the overall public.
- Name: Section 8 Company does not need to add Limited or Private Limited, besides its legal name. It very well may be enrolled with names like Foundation, Association, Society, Council, Organization, Club, Charities, Academy, Institute, and Federation.
- CARO: Necessities of Companies Auditor’s Report Order or CARO don’t make a difference to this kind of organization.
- Tax Benefits: Many tax benefits are granted for Section 8 Companies in India.
- Credibility: Section 8 Companies are more dependable than every 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. The principles of dealing with the benefits and misfortunes of the company make this company reliable.
- Exemption to the donors: Those giving to a Section 8 Company are eligible for charge exclusions u/s 12A and 80G of the Income Tax Act.
- Membership: An enlisted partnership firm can turn into a member in its individual capacity and acquire Directorship.
LegalRaahi offers to assist you in all matters of company registration. Let our expert team handle the complex procedure 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 with the CA/CS here.
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 LegalRaahi
You are required to fill in your details, online, in our simple questionnaire given above. It contains Name, Complete Address, Proposed Names for the Company, Number of Directors and their details, and Authorized Capital, etc.
Step 2: Get DIN & DSC
Applications would be filed with the ROC to obtain DIN and DSC for the Directors. Duly signed. We need to apply for DSC, first. Once it has been received, Form DIR-3 is to be filed with the ROC to get their DIN. A passport-sized photograph attested ID Proof, and Address proof of the Director is to be attached to these applications.
Step 3: Name Approval
You suggest your preferences and we’ll conduct Company Name Search. After your approval of the 3 options, we’ll apply for a unique name for your Company. Name availability has to be checked in the “Reserve Unique Name” or RUN facility.
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
We will apply for the Section 8 License with the Central Govt. The right format to use is Form INC-12. It is to be sent with MoA in Form INC-13. AoA, Declaration of CA/CS/CWA in Form INC-14, Declaration by Directors or Applicant in Form INC-15, Name Approval Letter, and a 3-year estimate of future income & expenses. And apply for the 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
As soon as all the processes have been completed and your Section 8 Company has been registered, we’ll apply for your PAN and TAN. It is done in Forms INC-7, 8, 10, 9, 22, DIR-2, and 12 with the ROC, along with the required documents. We’ll get them ready, and will send them to you immediately.
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: Section 8 Company can also raise funds by issuing new equity shares at a higher value.
- Domestic donations: There is no limitation to the 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. Its 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 about choosing a name for your company.
The name of 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 LLP should not be abusive, against the customs and beliefs of any religion, use slur & foul 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 recall that name during relevant matters
You are not allowed to name your Company that is exactly the same or identical to an existing company or trademark or for which a trademark has been applied. At LegalRaasta, you can check if the name you are proposing matches someone else.
Every name need not indicate the objects of the company, compulsorily, but when there is 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|
If a Section 8 Company fails to comply with the legal provisions, then the central government may revoke the license issued under this act.
In case of revocation, the company may get wound up. Or it may be simply asked to change its name to add “Private 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 with 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, 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 lakh and may extend to 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 fine not be less than Rs. 25, 000 and may extend to Rs. 25 lakh, 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.