Section 8 Company

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    Applicable for NGOs, and Non-Profit Organizations who want to form a Company, with a Social objective and, not intending to generate Profits.

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    Our Team at Bizzonns helps you in the documentation and end-to-end process of getting a Section 8 Company Incorporated and License from the ROC. They also guide you with the After Formation Process of the Company.

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    Starting at Rs 15,999 Onwards

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    (Duration – 12-15 Days)

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100% Online, Easy & All India Services

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12+ Years Experienced Team of Professionals

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Availability in Major Indian Cities

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Overview

Section 8 of the Companies Act, 2013, defines it as a limited company formed with the objective of promoting commerce, art, science, sports, education, religion, charity, protection of the environment, or any such objects, and it intends to apply its profits in the promotion of such objects.

The Companies Act prohibits the payment of any dividend or profit distribution to its members. The Company which gets registered under this section enjoys various privileges and exemptions.

Section 8 is categorized under NGO, registered at MCA, and eligible to work in India after registration. Section 8 is the most trusted format of NGOs in India. Section 8 registration is simple, fast, and transparent. It can be established only for non-profit objectives. Any profits earned by Section 8 Company, cannot be distributed among its members.

Companies liable for CSR Activities prefer Section 8 Companies for the same.

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Required Documents For Section 8 Company

Promoters

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    PAN Card of each Director & Shareholder

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    Address Proof (Driving License, Passport, Aadhar Card)

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    Latest Residence Proof (Electricity Bill, Water Bill, Gas Bill, and Bank Statement)

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    Passport Size Photograph of each Director & Shareholder

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    INC 15 Declaration by the Promoter

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    INC 14 Declaration by CA/CS/Advocate

Office Premises

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    Latest Electricity Bill, Gas Bill of Office Premises

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    NOC from Owner /Rent Agreement

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    Statement of Income & Expenditure of Next 3 years

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Formation

A person or an association of persons can make an application to the Registrar of Companies using requisite forms to form a company with charitable objectives under Section 8 of the Companies Act 2013. The Central Government if satisfied can accept such an application upon any terms and conditions imposed under the license granted by it. Once accepted, the Registrar of Companies will register the company after verifying documents and payment of requisite fees.

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Compliances For Subsidiary Company

First-time Compliance:-

After company incorporation, it needs to comply with the following list of Compliances with MCA –

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    Commencement of Business (INC 20A) – This needs to be filed within 180 days of Company Formation, once the Bank account is opened and the share application money is transferred into that account.

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    Share Certificate Franking and Stamping – The company needs to issue a share certificate to all the shareholders and be stamped.

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    Auditor Appointment – This Needs to be done within 30 days of Company Formation after holding an Annual General Meeting.

Yearly Compliances:-

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    There are certain Annual Compliances that a Company needs to file on an annual basis i.e. AOC – 4, MGT 7, DIR 3 KYC, and various others as applicable.

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Process

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Digital Signature Certificate (DSC)

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Persons who will be acting as a director and shareholders of the proposed company, need to apply for DSC. It is required to sign and validate all the documents.

Name Approval

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Proposed name needs to be approved by ROC. ROC will check the name availability on different parameters and then will issue the approval letter.

Company Incorporation

3

Once the name is approved, the application needs to be made for the formation of the Company in Form Spice+ and the same is verified by a professional CA, CS or CMA.

Drafting of MOA & AOA

4

Along with Spice+, the MOA & AOA of the Company also need to be filed. A Memorandum of Association (MOA) defines the fundamentals of the company and the Articles of Association (AOA) contains the rules & regulations of the Company.

Incorporation Certificate

5

After verification of Spice+, Roc will issue the Certificate of Incorporation. Incorporation Certificate gets issued within 3-4 working days.

Opening Bank Current Account

6

After receiving COI and other relevant documents, Private Limited can open the bank’s current account in the name of the Company.

FAQ

Any Questions? Answered

Our FAQ section addresses common inquiries to help you find the information you need quickly. If you have further questions, feel free to reach out!

The Main objective of a Section 8 Company is to operate as a Non-Profit Organization. It is a company that gets registered with charitable objects such as the promotion of Arts, Commerce, science, education, sports, protection of the environment, religion, charity, etc.
As per the Companies Act 2013, a Section 8 company can make profits from its core business activity, but the Act restricts them to distribute the said Profits among its members. Thus, the Profits of the Section 8 Company cannot be distributed and needs to be reutilized for the Main Object of the Company.
The Major benefit of a Section 8 Company is that it enjoys various tax exemptions from the Government, as the object of the company is not to make a profit. Once an entity gets a Section 80G certificate from the Income Tax Department, then the donors can also claim an exemption on the donations made by them.
Once a Company gets a Section 8 License, issued from the Ministry of Corporate Affairs, after that, it can apply with the Income Tax Department for 12A and 80G Certificates and claim the benefits under these sections.
Yes, the Existing Section 8 Company can be converted into a Private Limited Company, by following the rules and regulations prescribed under the Companies Act 2013 and by taking Approval from the Concerned Registrar of Companies (ROC).
There is no Minimum capital required for starting a Section 8 Company. All the members of the Company can contribute the amount, which is sufficient enough to start and run the business.