Registration A Section 8 Company is a corporation that is registered as a Non-Profit Organization (NPO). NPO/company has its objective of promotion of arts, commerce, charity, education, protection of the environment, science, social welfare, sports, research, religion and intends to use its profits, if any, or other income in promoting its objects. It functions precisely sort of a company including all the rights and obligations that come with such a company. However, it differs from a company in one very crucial facet, i.e. it cannot use the words “Section 8” or “Limited” in its name.
The income of the company should be used to promote solely charitable objects and can’t pay any dividends to the members of the corporate. The central government provides an incorporation certificate to all such firms and conjointly informs them concerning some restrictions and conditions. just in case they don’t fulfill them, the central government may additionally get them organized to land up the company. in case fraud objectives of the company are evidenced, legal proceedings are going to be taken against all officers of the corporate. Section 8 Company Registration can be done through SetyourBiz.com in Delhi NCR, Mumbai, and alternative Indian cities
Important Highlights’ on Section 8 Company:
- NO PROFIT INTESNSIONS: Companies registered under section 8 company registration act cannot distribute profit and assets to its member.
- RIGHT TO VOTE: the voting rights in section 8 company registration act depends upon the number of shares.
- NO MINIMUM CAPITAL: The companies under section 8 company registration act can be incorporated with the capital as required by it. There is no minimum amount is prescribed.
- ONE RESIDENT DIRECTOR: The incorporated company under section 8 company registration act must have a director who is a resident of India.
How to Register Section 8 Company
Section 8 company is appropriate for non-profit objective and it’s going to a private limited or a public limited company. As per law just in case the planned section 8 company is a private limited then minimum of 2 promoters is needed, but just in case it’s a public restricted section 8 company then a minimum seven-person should be the promoters of the company. A ‘Section 8 Company’ is eligible for certain exemptions from provisions of law and a concessional rate of fees. the method of incorporation of a section 8 company is similar to that of the other company registration in India with an extra requirement of seeking a prior license from the central government beneath section eight of the businesses act, 2013.
Also referred to as a licensed Company, in contrast to the formation of the other company, it’s essential for Section 8 Company to urge Special License from Central Government. every demand a company an organization should be followed but in the case of Section 8 Company, a Special License is needed for its incorporation by submitting an application to roc. Rule nineteen of the Companies (Incorporation) Rules, 2014 provides for the problem of the License for the Section 8 Company beneath a procedure to be followed.
A Section 8 company comprises of the following distinct features that most other kinds of companies don’t have:
- Charitable objectives: Section 8 firms don’t aim to form profits. Their objectives are strictly charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.
- No minimum share capital: Section 8 firms, in contrast to all different firms, don’t need a prescribed minimum paid share capital.
- Limited liability: Members of those firms will solely have financial obligations. Their liabilities can’t be unlimited in any case.
- Government license: Such companies can operate as long as they have the Central Government’s license. the government can revoke this license also.
- Privileges: Since these companies possess charitable objectives, the companies’ Act has accorded many advantages and exemptions to them.
- Firms as members: apart from individuals and associations of persons, Section 8 also allows firms to be members of these firms.
Requirements for Private Limited Company Registration
- Obtaining digital signature certificate- In today’s modern world everything is done online now the days of pen and paper have gone All documents are submitted electronically and for that, each company should acquire a digital signature certificate that is employed to verify the legitimacy of the documents… A digital signature is obtained by all the directors which are used on all the documents by every director.
- Members- A minimum number of two and a maximum number of 200 members or shareholders are required as per the companies’ act 2013 before registration of the company.
- Directors- The least number of directors required for registering the private limited company is two. Each of the directors ought to have DIN i.e. director identification number which is assigned by the ministry of corporate affairs. One condition is among the two directors one must be the resident of India which means he/she should have stayed in India for at least 182 days in a previous calendar year.
- Name- one of the most important and major components for a private limited company is the name. The name of the company comprises three parts i.e. the name, the activity, and private limited company. The use of a private limited company at the end of the company name is compulsory. For the acceptance of the name, one should send at least 6 alternatives For the approval of the Registrar and all the names should be unique and expressive and the purposed name should not reassemble to any other in any means. Choosing the right company name is an important component is it will stay with the company throughout its life.
- Registered office address- While going for the registration of the company, you should provide the temporary address of the company for the period of registration. However when the company has been registered then the permanent address of its registered office should be suited with the registrar of the company. The Registered office of the company is where the company’s main tasks are done and the working bodies are placed there with all documentation.
ADVANTAGE OF SECTION 8 COMPANY
- Members have limited liability.
- They get several tax exemptions.
- Stamp duties and high fees are not payable for registration.
- They have perpetual existence and separate legal status.
- Exemptions from carrying out several procedural compliances.
- More credibility than compared to NGOs, societies, and trusts because they are recognized by the Central Government’s license
Online Process | Free Consultation
- Two Digital Signature (DSC)
- Two DIN Number
- Name Approval Letter of the Company
- MOA & AOA + Certificate of Incorporation
- PAN and TDS number for the Company
The lengthy procedure of company registration turns into an easy process with SetyourBiz Corporate. Get your first startup company registered with Setyourbiz.com with great ease by sitting in your house. Our highly qualified team of professionals will do all the process with great perfection across India. We will extend our support in documentation, preparation, filing and subsequent Follow-up with ROC