What is the Procedure for Registering a Section 8 Company?

Last Updated at: July 16, 2020
916
What is the Procedure for Registering a Section 8 Company_

 

  1. Overview

  2. Benefits of registering a Section 8 Company

  3. Documents for registering of Section 8 Company

  4. FAQs

Overview

Any company which is registered for the charitable or not-for-profit purpose is known as the Section 8 company. Such a type of company is very much similar to that of trusts and societies. But, the only difference it confronts is that section 8 companies that register under the Central Government’s “Ministry of Corporate Affairs (MCA)” and societies and trusts are registered under the state government regulations. Before the applicability of Companies Acts in 2013, the following act was known under section 25 of the Companies Act 1956.

Benefits of Registration of Section 8 Company

Everybody thinks that forming or registering a company is a tedious process, but if you are looking forward to getting registered under Section 8, then the process is going to be very easy. Following are the benefits:

  • No requirement of minimum paid-up capital
  • Stamp duty registration is not necessary
  • Offers flexibility
  • The total period involved in registering the company under section 8 requires somewhere around 30-45 working days.
  • The use of the title is necessary for public and private companies. Like, for running a public company, the company has to use the title of ltd. And if the company is private, then they have to use Pvt. Ltd. But, this is not the case with the company registration under section 8. They can use any name of their choice.
  • There are limited liability companies who will not allow to transfer their title, but in the case of section 8 registered companies, there are no such restrictions.

Documents for Registration of Section 8 Company

  • DIN (Director’s Identification Number)

It is unique, no. that issues by the registrar of companies. Until and unless this number is not getting by the director, they cannot start their company. For the allotment of the DIN no., one has to send an application to the registrar of the companies along with one photograph, address proof, and I.D., which attestation by their C.A.

  • DSC (Digital Signature Certificate)

It is the physical certification available in the digital format. The importance of this certificate is that it will require while filling the application form. Moreover, it is issued by the licensed certifying officer.

  • Approval of Name

According to the guidelines, every company must be having a unique name. For that matter, you should provide 6 names that the company has to be registered under. Additionally, it must conclude with the foundation, trust, association, council, etc.

  • MOA and AOA

Memorandum of registration (MOA) and articles of association (AOA) are the different documents. MOA defines the corporate relationship; on the other hand, AOA defines the company’s purpose and its operations.

  • INC 12

Accompanied by MOA and AOA, INC 12 is another important legal document. Moreover, it is a kind of declaration confirming the application by the company secretary.

Register your Section 8 Company

Besides, the following documents are a must:

  1. The objective of the company
  2. Financial Statement of the company and projection of the income and expenses for at least 5 years
  3. Additionally, personal documents of directors like address proof, ID proof
  4. Registered office address like Sales Deed, rental agreement, etc.

Once you have all these documents, you can begin the process of Section 8 Company registration.

Steps for Section 8 Company Registration Online

The section 8 company registration process is easy; you can now do Section 8 company registration online. Moreover, you can do it yourself or seek assistance from a company registration provider online. Additionally, here are the basic steps of Section 8 company registration process:

Step1

The first step of the Section 8 company registration process is to get the DIN and DSC of the Directors. 

Step 2

Name Approval- The second step is to get the approval of the name of the company. Similarly, A Section 8 company must use words like Federation, Society, Club, Charities, Academy, Chamber of Commerce, Association, etc. Additionally, this approved name is valid for 20 days. Additionally, if not registered within that time frame, it will expire, and you have to start searching for a new name.

Step 3

Get the RD1 License. Here you must know that for the RD1 License, the name of the common should be valid at the time of application. Additionally, RD1 License comes under Section 8 of the Company Act, which mentions the fact that the company will be working for the enhancement of science. Moreover, for commerce and the profit, we earn through it will be used for the benefit purpose of their objectives. Additionally, you would need MoA, AoA, and other documents at this stage.

You need to use the following forms:

  1. Form INC 12
  2. MoA is sent in Form INC 13
  3. AoA, Declaration of CA/CWA/CS in Form INC-14
  4. Declaration by Directors in Form INC-15
  5. Name approval letter and a 3-year estimate of future income and expense of the company

Step 4

Next, you need to apply for a Certificate of Incorporation. Moreover, here CIN or Company Identification Number will mention.

COI is proof that the company is created.

Step 5

Soon after the incorporation of the company, one must apply for PAN and TAN; for this, you will need Forms INC-7,8,10,9,22, DIR-2, and 12 with the ROC.

To know more about Section 8 Company Registration: Click here

You should also read:

FAQs

  1. Is the registration of a foreign company possible under section 8 of the Companies Act?

Under Section 2(42) of the Companies Act, 2013 the companies which are to consider as foreign companies are said if the category is to be different then they can surely register under section 8 of the company.

2. How many directors need to form a section 8 company?

A minimum of two directors will need to register a company under Section 8 of the Companies Act.

3. Is it necessary to have a non-profit motive for registration of a section 8 company in India?

Yes, it is mandatory to have a not for profit motive of the organization.

4. What is the cost of registering Section 8 Company?

Section 8 company registration cost is bifurcate into two parts – one is the government, and the other is professional. Therefore, Section 8 company registration cost is somewhere between Rs. 24,000 to Rs. 30,000.

 

 

 

0

What is the Procedure for Registering a Section 8 Company?

916

 

  1. Overview

  2. Benefits of registering a Section 8 Company

  3. Documents for registering of Section 8 Company

  4. FAQs

Overview

Any company which is registered for the charitable or not-for-profit purpose is known as the Section 8 company. Such a type of company is very much similar to that of trusts and societies. But, the only difference it confronts is that section 8 companies that register under the Central Government’s “Ministry of Corporate Affairs (MCA)” and societies and trusts are registered under the state government regulations. Before the applicability of Companies Acts in 2013, the following act was known under section 25 of the Companies Act 1956.

Benefits of Registration of Section 8 Company

Everybody thinks that forming or registering a company is a tedious process, but if you are looking forward to getting registered under Section 8, then the process is going to be very easy. Following are the benefits:

  • No requirement of minimum paid-up capital
  • Stamp duty registration is not necessary
  • Offers flexibility
  • The total period involved in registering the company under section 8 requires somewhere around 30-45 working days.
  • The use of the title is necessary for public and private companies. Like, for running a public company, the company has to use the title of ltd. And if the company is private, then they have to use Pvt. Ltd. But, this is not the case with the company registration under section 8. They can use any name of their choice.
  • There are limited liability companies who will not allow to transfer their title, but in the case of section 8 registered companies, there are no such restrictions.

Documents for Registration of Section 8 Company

  • DIN (Director’s Identification Number)

It is unique, no. that issues by the registrar of companies. Until and unless this number is not getting by the director, they cannot start their company. For the allotment of the DIN no., one has to send an application to the registrar of the companies along with one photograph, address proof, and I.D., which attestation by their C.A.

  • DSC (Digital Signature Certificate)

It is the physical certification available in the digital format. The importance of this certificate is that it will require while filling the application form. Moreover, it is issued by the licensed certifying officer.

  • Approval of Name

According to the guidelines, every company must be having a unique name. For that matter, you should provide 6 names that the company has to be registered under. Additionally, it must conclude with the foundation, trust, association, council, etc.

  • MOA and AOA

Memorandum of registration (MOA) and articles of association (AOA) are the different documents. MOA defines the corporate relationship; on the other hand, AOA defines the company’s purpose and its operations.

  • INC 12

Accompanied by MOA and AOA, INC 12 is another important legal document. Moreover, it is a kind of declaration confirming the application by the company secretary.

Register your Section 8 Company

Besides, the following documents are a must:

  1. The objective of the company
  2. Financial Statement of the company and projection of the income and expenses for at least 5 years
  3. Additionally, personal documents of directors like address proof, ID proof
  4. Registered office address like Sales Deed, rental agreement, etc.

Once you have all these documents, you can begin the process of Section 8 Company registration.

Steps for Section 8 Company Registration Online

The section 8 company registration process is easy; you can now do Section 8 company registration online. Moreover, you can do it yourself or seek assistance from a company registration provider online. Additionally, here are the basic steps of Section 8 company registration process:

Step1

The first step of the Section 8 company registration process is to get the DIN and DSC of the Directors. 

Step 2

Name Approval- The second step is to get the approval of the name of the company. Similarly, A Section 8 company must use words like Federation, Society, Club, Charities, Academy, Chamber of Commerce, Association, etc. Additionally, this approved name is valid for 20 days. Additionally, if not registered within that time frame, it will expire, and you have to start searching for a new name.

Step 3

Get the RD1 License. Here you must know that for the RD1 License, the name of the common should be valid at the time of application. Additionally, RD1 License comes under Section 8 of the Company Act, which mentions the fact that the company will be working for the enhancement of science. Moreover, for commerce and the profit, we earn through it will be used for the benefit purpose of their objectives. Additionally, you would need MoA, AoA, and other documents at this stage.

You need to use the following forms:

  1. Form INC 12
  2. MoA is sent in Form INC 13
  3. AoA, Declaration of CA/CWA/CS in Form INC-14
  4. Declaration by Directors in Form INC-15
  5. Name approval letter and a 3-year estimate of future income and expense of the company

Step 4

Next, you need to apply for a Certificate of Incorporation. Moreover, here CIN or Company Identification Number will mention.

COI is proof that the company is created.

Step 5

Soon after the incorporation of the company, one must apply for PAN and TAN; for this, you will need Forms INC-7,8,10,9,22, DIR-2, and 12 with the ROC.

To know more about Section 8 Company Registration: Click here

You should also read:

FAQs

  1. Is the registration of a foreign company possible under section 8 of the Companies Act?

Under Section 2(42) of the Companies Act, 2013 the companies which are to consider as foreign companies are said if the category is to be different then they can surely register under section 8 of the company.

2. How many directors need to form a section 8 company?

A minimum of two directors will need to register a company under Section 8 of the Companies Act.

3. Is it necessary to have a non-profit motive for registration of a section 8 company in India?

Yes, it is mandatory to have a not for profit motive of the organization.

4. What is the cost of registering Section 8 Company?

Section 8 company registration cost is bifurcate into two parts – one is the government, and the other is professional. Therefore, Section 8 company registration cost is somewhere between Rs. 24,000 to Rs. 30,000.

 

 

 

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