Section 8 Company Registration in India
Section 8 Company are also known as non-profit companies or non-governmental organizations (NGOs). These companies are established for the purpose of promoting social welfare and not for earning profits. They can receive donations and contributions from the public, but they cannot distribute any dividends to their members.
Section 8 company enjoy certain benefits such as tax exemptions, reduced compliance requirements, and access to funding from various sources. These companies are regulated by the Ministry of Corporate Affairs (MCA) and must comply with the rules and regulations prescribed by the central government for such companies.
Benefits of Section 8 Company Registration Online
There are several benefits of Section 8 Company Registration online in India, which include:
- Time-saving: Online registration of a Section 8 company is faster and more convenient than offline registration, as it eliminates the need for physical visits to government offices.
- Cost-effective: Online registration of a Section 8 company can be less expensive than offline registration, as it reduces the need for paperwork and travel expenses.
- Ease of access: Online registration of a Section 8 company is accessible to anyone with an internet connection, making it easier for people to start non-profit organizations.
- Transparency: Online registration of a Section 8 company ensures transparency in the registration process and eliminates the possibility of any fraudulent activities.
- Real-time tracking: The online registration process allows applicants to track the status of their application in real time and receive updates on any progress or changes.
- Simplified process: The online registration process for a Section 8 company is streamlined and simplified, making it easier for applicants to understand and complete the process.
- Reduced processing time: Online registration of a Section 8 company reduces the processing time required for approval, as applications are reviewed and processed quickly.
Overall, Section 8 company registration online provides a more efficient and effective way to start a non-profit organization in India.
What are the Conditions to Grant License for Online Section 8 Company Registration?
The conditions to grant a license for online Section 8 company registration in India are the same as the conditions for offline registration. These conditions are as follows:
- Non-profit objective: The primary objective of a Section 8 company must be to promote charitable activities such as education, art, science, religion, social welfare, sports, or any other similar objectives, without the intention of making any profits.
- Restrictions on dividends: A Section 8 company cannot distribute any dividends to its members or shareholders.
- Restrictions on transfer of ownership: The ownership of a Section 8 company cannot be transferred or sold to another person or entity.
- Utilization of profits: Any profits earned by a Section 8 company must be utilized for promoting its charitable objectives and cannot be distributed among its members or shareholders.
- Statutory compliances: A Section 8 company must comply with the rules and regulations prescribed by the central government for such companies, including the filing of annual returns, maintenance of books of accounts, and other statutory compliances.
- Prior approval: A Section 8 company must obtain prior approval from the central government for any alterations in its memorandum and articles of association, or any other significant changes in its operations.
the conditions for online Section 8 company registration in India are similar to the conditions for offline registration and are designed to ensure that the company operates in a transparent and compliant manner while fulfilling its charitable objectives.
Documents Required for Incorporation of Section 8 Company in India
The documents required for incorporation of a Section 8 company in India are as follows:
- Identity Proof: Identity proof such as PAN card, Aadhaar card, or passport of all proposed directors and shareholders of the company.
- Address Proof: Address proof such as utility bills, bank statements, or passports of all proposed directors and shareholders of the company.
- Memorandum of Association (MoA): MoA is a legal document that outlines the objectives and powers of the company. It must be signed by all proposed directors and shareholders.
- Articles of Association (AoA): AoA is a legal document that outlines the rules and regulations governing the operations of the company. It must be signed by all proposed directors and shareholders.
- Declaration of Compliance: A declaration of compliance must be signed by all proposed directors stating that all the requirements of the Companies Act, 2013 have been complied with.
- Registered Office Proof: Proof of the registered office of the company such as a utility bill, rent agreement, or ownership deed.
- NOC from the landlord: If the registered office is a rented property, a no-objection certificate (NOC) from the landlord is required.
- DSC of Directors: Digital Signature Certificates (DSC) of all proposed directors must be obtained.
- DIN of Directors: Directors Identification Number (DIN) must be obtained for all proposed directors.
- Payment Receipt: Proof of payment of the Section 8 Company registration fee must be submitted.
It is important to note that the documents required may vary depending on the state in which the company is being registered. Additionally, the documents must be filed in the prescribed format and manner as per Section 8 of Companies Act 2013 and the rules and regulations made thereunder.
Eligibility Criteria for Section 8 Company Registration
The eligibility criteria for Section 8 company registration in India are as follows:
- Minimum Number of Directors: A Section 8 company must have a minimum of two directors. At least one of the directors must be a resident of India.
- Minimum Number of Shareholders: A Section 8 company must have a minimum of two shareholders. There is no maximum limit on the number of shareholders.
- Objectives of the Company: The main objective of a Section 8 company must be to promote charitable or non-profit activities, such as the promotion of art, education, commerce, social welfare, sports, religion, or any other useful purpose. The profits earned by the company must be used for the promotion of its objectives and not distributed as dividends to its members.
- Capital Requirement: There is no minimum capital requirement for a Section 8 company. However, the company must have sufficient funds to achieve its objectives.
- Registered Office: A Section 8 company must have a registered office in India.
- Compliance Requirements: A Section 8 company must comply with the provisions of the Companies Act, 2013 and the rules and regulations made thereunder. The company must also file its financial statements and annual returns with the Registrar of Companies (RoC) regularly.
What is the Section 8 Company Registration Process for Company Incorporation in India?
The Section 8 company registration process for Company Incorporation in India involves the following steps:
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN): All proposed directors of the Section 8 company must obtain DSC and DIN.
- Name Approval: The proposed name of the company must be approved by the Registrar of Companies (RoC). The name must not be similar to an existing company or trademark and must comply with the rules for naming a company.
- Drafting of Memorandum and Articles of Association: The MoA and AoA must be drafted by the provisions of the Companies Act, 2013. The MoA must include the objectives of the company, while the AoA must contain the rules and regulations governing the operations of the company.
- Submission of Documents: Once the name is approved and the MoA and AoA are drafted, the required documents must be submitted to the RoC. The documents include the Memorandum and Articles of Association, a declaration of compliance, proof of registered office, identity and address proof of directors and shareholders, and payment receipt of the registration fee.
- Issuance of Certificate of Incorporation: After verifying the documents and completing the necessary formalities, the RoC issues a Certificate of Incorporation, which signifies the creation of the Section 8 company. The Certificate of Incorporation contains the company's name, registration number, date of incorporation, and authorized capital.
- Apply for PAN and TAN: After the Certificate of Incorporation is obtained, the company must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
It is important to note that the Section 8 company registration process may take anywhere from 15 to 30 days, depending on the processing time of the RoC and the accuracy and completeness of the submitted documents.
Benefits of Choosing BiatConsultants as Section 8 Company Registration Consultant
Some major benefits of Choosing BiatConsultants as a Section 8 Company Registration Consultant are:
- Team of Experts CA and CS for smooth processing
- Multiple Happy Customers from all over India
- Dedicated Customer Support for all your Queries
- Smooth Online process without traveling anywhere.
- Year of Experience and still counting.
Process of Section 8 Company Registration in India
1. Contact BIATConsultant
2. Documentaiton Preparation
5. Get Your Company Registration certificate
Exemption from paying stamp duty on the Memorandum and Articles of Association.
Tax exemption under Section 12A and 80G of the Income Tax Act.
Separate legal entity
The registration process for a Section 8 Company can take anywhere between 20-30 days, depending on the processing time of the Registrar of Companies.
Some advantages of registering a Section 8 Company are:
- Tax exemption under Section 12A and 80G of the Income Tax Act
- Perpetual succession
- Limited liability
- Separate legal entity
- Exemption from paying stamp duty on the Memorandum and Articles of Association
- Trustworthiness and credibility in the eyes of the public and donors
Some disadvantages of registering a Section 8 Company are:
- The process of registration can be time-consuming and cumbersome.
- The regulations and compliance requirements can be strict and demanding.
- The management and governance of the organization are subject to scrutiny by the Registrar of Companies and other regulatory authorities.
- The activities of the organization must be aligned with its stated objectives, and any deviation can result in penalties or cancellation of registration.