Eligibility for applying for section 8 company
An individual or several individuals might be eligible for registration as a section 8 company in case they hold the intentions or objectives mentioned below. These objectives must conform to the Central Government’s satisfaction.
• When the company has the intention for investing all the profits in the promotion of science, education, commerce, sports, art, research, charity, religion, social welfare, or protection of the environment.
• When the company does not have any intention of paying any dividend to the members.
Section 8 company features
A section 8 company consists of the subsequent distinct features, unlike the majority of the other types of companies.
1. Charitable objectives
A Section 8 company does not have any intention of making profits. The objectives of these companies are charitable. They attempt to further causes such as culture, science, sports, religion, research, and so on.
2. Restricted liability
The members of the Section 8 companies might have only limited liability. Under no circumstances, their liabilities can be unlimited.
3. No minimum share capital
As compared to every other company, a Section 8 company does not need any prescribed minimum share capital.
4. Government license
It will be possible for these companies to function only if they have a license issued by the central government. This license can be revoked by the government as well.
5. Privileges
The Companies Act has provided certain benefits and exemptions to the section 8 companies because they possess charitable objectives.
6. Members versus firms
Besides associations of persons and individuals, section 8 likewise enables the firms to become members of these companies.
How is it possible to register a Section 8 company in India?
Registration of a Section 8 company in India is a unique and different concept. It happens to be a nonprofit entity that is engaged in social work to provide benefits to the country. It is possible to divide the registration process into 3 parts.
1. Prepare filename approval and DSC
The initial step will be to prepare DIN and DSC. This process is going to take a couple of days. Following this, it will be imperative to file for the approval of the name. The name needs to be unique and it should end with terms such as Sanstha, foundation, and so on.
2. File for license
Following the approval of the name, the subsequent step will be to prepare the documents and apply to the Regional Director for a license via form INC 12. A significant amount of time will be required for this approval to take place.
3. File for incorporation
After receiving the license, it will be imperative to file for incorporation and it will be possible to start the social work after the company has been incorporated.
Documents needed for registering section 8 company
1. For shareholders or directors
• Aadhar Card
• PAN card copy
• Passport size photograph
• Address proof (Telephone bill, mobile bill, bank statement)
2. For registered office
• Utility bill (Electricity bill, gas bill)
• NOC(Download format)
• Proof of ownership (electricity bill, and so on)
The registration process of Section 8 company
The registration process of a Section 8 company needs a minimum of 2 individuals to start with. Moreover, there is no restriction for initial capital, and therefore, one can start with Rs.10,000. Here, we have provided a registration procedure for a Section 8 company.
1. Prepare DIN, DSC, and name approval
It is important to arrange all documents properly before applying for the DIN, DSC, and so on. The reason for this is that rejection can take place because of improper documentation.
2. Make an application for a license
The subsequent most significant part will be to obtain a license from the government for performing social work in the country. This will be done using e-form no.12 along with proper attachments and application.
3. File for incorporation
The final step will be to file the incorporation together with all the required documents. The form will be attached with all the essential attachments such as AOA, MOA, declarations, and so on.
Compulsory requirements for registering Section 8 company
A section 8 company will be formed by those individuals who don’t have any motive of making a profit. Instead, they have a social objective. Therefore, the compulsory requirements for starting the company will be as follows:
• At least a couple of individuals will be required to be there with all the above-mentioned documents.
• There should be a proper plan for your social objectives.
• While choosing the company’s capital, the same has to be invested within 2 months into the company.
At TaxSavvy, our experts will be registering your section 8 company in India while helping you with every single matter related to company registration as well. We will help you with everything starting from a name selection for your company, searching the name’s availability as selected by you, designing the logo, providing consultancy regarding any matter linked to your company registration, as well as providing your brand name’s trademark registration. Registering your company will be only the initial step of your journey with our company. We are also known to provide other services consisting of bookkeeping, annual filing, taxation, plus ROC compliances (like notices, minutes, and so on). In a nutshell, we happen to be a one-stop shop for all your business requirements.
