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Registration of Section 8 Company

Section 8 Company
9950* Basic Package

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Overview

Registering Section 8 Company  

All the Non-profit organizations in India can be registered as a Trust by implementing a Trust Deed. They can also register as a society under the registrar of society or Non-profit Company under Section 8 Company of the companies Act, 2013. A Section 8 company is alike to section 25 companies as per the former companies Act, 1956. According to the modified companies Act, 2013, section 25 has become section 8 company.

According to section 8 (1A), (1B), and (1C) of the companies Act, 2013, A section 8 company can only be established for the following purposes:

1) Promotion of commerce

2) Promotion of Arts

3) Advertising of sports and education

4) Advertising of research

5) Promotion of social welfare

6) Promotion of religion

7) For charity purpose

8) For the protection of environment or any other such objectives

Further, the companies Act also states that a section 8 company can follow the above objectives to a condition that it plans to apply its profit. If another origin of profit elevates its objects, section 8 company plans to forbid payment of any distribution to its member. In the purest words, a section 8 company must exhibit a public cause. And the profits produced by any such article must be completely used to help the public issues.

Acceptability for Section 8 company registration 

The enrollment of a private limited company and Section 8 Company are pretty identical. For registering as a section 8 company, the entity must have two directors. In which one of the directors must be an Indian national, and the other person may be a resident of India or foreign inhabitants. In addition to the person required, a section 8 company also needs to have a registered office address within India.

The eligibility criteria to designate as a section 8 companies are:

1) The entity must have the intention to support science art, sports, education, social welfare, religion, research, commerce, charity, and security of environment.

2) The entity must use all the profit generated to promote the objectives.

3) The company must forbid the payment of any dividend to its member.

4) The company registered under section 8 will enjoy all the privileges and subjects to the responsibilities of a limited company.

Document Required

As per the Trust Deed, trust in India is controlled by the trustees. Similarly, a section 8 company shall be operated by the board of directors. Which is quite related to the private limited corporation? During the process of incorporation, the documents needed are:

Digital signature of the directors- 

The directors of the section 8 company must obtain their digital signature certificate. To obtain the digital signature certificate, the directors must provide the following documents:

  • PAN/ Aadhar card
  • Driving license/passport/voter ID
ID proofs of the director 
  • include the government ID proofs such as Aadhar card/Voter ID/ driving license, or any other.
PAN of the directors-
  • to register as a section 8 company the directors must provide their PAN details.
Address proof- 

Any entity that wants to register as a section 8 companies must provide their proof address. It can be in the form of:

  • Telephone bill
  • Electricity bill
  • Rent agreement
Photos- 
  • The directors of the company must provide their passport size photo. 
Rent agreement/ NOC- 
  • If the place of business is a rental property, then the entity must provide a rent agreement or the no-objection certificate from the owner
Utility Bill- 

The utility bills must be in the address of the registered office. it includes

  • Electricity bills
  • Water bills
  • Gas bills
DIN-
  • the directors of the entity must provide the director identification number.
Financial statement-
  • The entity must provide the recent financial statement of the entity.
Incorporation documents-
  • It includes the certificate of MOA and AOA

Time Lines

  • (10 to 15 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with registrar authorities
  • Receipt of Registration Certificate
  • Confirmation to client

Name approval of section 8 company

The company that wants to register as a section 8 company must obtain the name approval from the Ministry of corporate affairs. As per the Companies Act, the name of section 8 company must end with the following suffix like:

1) Foundation

2) Forum

3) Association

4) Federation

5) Chambers

6) Confederation

7) Council

8) Electoral Trust or any other

The words name used in section 8 company are usually foundation/association. The name approval procedure takes 24-72 hours to complete.

Incorporation document

Once after the completion of name approval, the MOA, AOA, and the incorporation certificates are prepared. For that, all the directors must sign the required documents and upload a copy. Once your certificate goes through the confirmation, the establishment application is registered with the Ministry of corporate affairs.

80G certificate 

80G is a certificate that exempts a person who wants to donate to section 8 companies from paying the income tax for the donation. However, there is a maximum allowable deduction condition. The situation is if the contribution amount surpasses 10% of the entire income, then the individual donating will not pass for tax benefits.

Service Covered

Pricing for what you want required service

Basic

9950*
  • Expert Consultation
  • 2 DIN Application (if DIN of directors are not available)
  • 2 DSC token, If required
  • Incorporation Fee and Stamp Duty Fee 1
  • PAN and TAN
  • Open a Current Account 2
  • Incorporation Certificate
  • GST Registration

Business

26950*
  • Expert Consultation
  • 2 DIN Application (if DIN of directors are not available)
  • 2 DSC token, If required
  • Incorporation Fee and Stamp Duty Fee 1
  • PAN and TAN
  • Open a Current Account 2
  • Incorporation Certificate
  • GST Registration
  • One Year Accounting upto 100 entries per month

Enterprise

44950*
  • Expert Consultation
  • 2 DIN Application (if DIN of directors are not available)
  • 2 DSC token, If required
  • Incorporation Fee and Stamp Duty Fee 1
  • PAN and TAN
  • Open a Current Account 2
  • Incorporation Certificate
  • GST Registration
  • One Year Accounting upto 100 entries per month
  • Director Report
  • 4 Board Meeting Resolution
  • Income Tax Return
  • MCA Annual Filing
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.
  • 1. Stamp duty additional required Rs. 7,500 in case of Madhya Pradesh, Rs. 3,000 in case of Kerala and Rs. 10,000 in case of Punjab state incorporation.
  • 2. Current Account will be choosen as per your preference.

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