Section 8 Company Registration

Section 8 Company Registration India

A Section 8 company is an company which is registered as an non profit organisation. Non- profit organisation/company refers to a Company which has its object of the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, intends to apply its profits, if any, or other income in promoting its objects.

Procedure for Section 8 Company Registration:

As per the new Companies Act, 2013 a Section 8 company has to be registered as an normal Private Limited Company.
First the members of the company, which should be minimum two has to obtain DSC and then DIN which is mandatory.
The draft Constitutional Documents of proposed Company i.e. Memorandum of Association (MOA) and Articles of Association (AOA) is to be drafted and then filed with the RoC along with the forms.
The last page of the MOA and AOA must contain details of the subscribers to the Memorandum and Articles and the number of shares to be subscribed by each. This last page is required to be executed by subscribers.
In the case of foreign subscriber the above documents need to be consularised before the Indian Embassy in the respective Country. In case of wholly owned subsidiary, a copy of the Board resolution of Holding Company approving the investment in the proposed Indian Company and authorizing a person to sign the incorporation papers on behalf of the company, duly attested by the officer of the Indian Embassy in the foreign country where the registered office is situate is also required to be attached with the papers.
A form INC-12 has to be filed with the ROC for the application of license.
After receiving license approval from the Central Government, Form INC-7 and DIR-12 has to be filed in order to obtain Certificate of Incorporation.

Registration Process

APPLY FOR DSC AND DIN

The first step in registering your company is to apply for DSC (Digital Signature Certificate) Since all the forms are uploaded on-line any one of the Director should obtain DSC. Secondly, obtaining DIN for the Directors. It is a unique eight digit number, which is allotted to every Director and has lifetime validity.

NAME RESERVATION

After completing first step, next comes your company name. If the proposed company name is more than one, then we have to apply for Name reservation. Maximum we can apply with six names and in that any one name will be approved by the ROC.

APPLICATION FOR LICENCE

When the name is approved, as Section 8 company have to apply for license in order to carry out his charitable object. So, documents will be drafted from our end with guidance of expert team of Company Secretaries and after your confirmation and signature, necessary forms will be submitted. Granting of license is in the hands of RoC and it will take some time for approval.

CERTIFICATE OF INCORPORATION

While receiving the license copy from ROC, we have to again file necessary forms for obtaining Certificate of Incorporation. Certificate of incorporation will be released when the Forms are approved. Once the certificate gets released from the moment onwards your company is legally formed and you can start running your business. After the incorporation, we will apply for your Company PAN and TAN.

DOCUMENTS REQUIRED FOR THE PROCESS

SCANNED COPY OF THE FOLLOWING DOCUMENTS HAS TO BE PROVIDED BY THE PROMOTERS OF THE COMPANY:

PAN card copy with Self attestation.
Voter Id copy or Passport copy or Aadhar card copy or Driving license copy with self attestation.
Latest Bank account statement or Mobile /Telephone bill or Electricity Bill (not older than two months)- no need for self attestation.
Latest passport size photo in jpg.
For the registered office proof of the company, if the property is rented/ leased, then copy or rental agreement or lease agreement.
Copy of Electricity bill or Property Tax receipt or Water Tax receipt not older than two months.
Copy of No objection certificate from the owner of the property.
If owned property, copy of Sale Deed and Electricity bill is sufficient.
In case of NRI or Foreign national, Passport copy has to be notarized at the Indian Embassy of the particular country.
Utility bill has to be provided of the particular country where the NRI or Foreign national resides and it should be notarized.

Advantages of Section 8 company

Separate Legal Entity

An entity means something which has a real existence; a thing with distinct existence. A company is a legal entity and a juristic person established under the Act. A juristic person is a person who is not anatural person or human being. Therefore a company form of organization has wide legal capacity andcan own property and also incur debts.

Easy Transferability

Where it is proposed to sell the business as a going concern, all that is required is to transfer the entire shareholding to the purchaser and thus facilitate easy change in management and ownership. This will save time and money of the Promoters. Huge amount of stamp duty is saved.

Perpetual Succession

Another important characteristic of a private limited company is perpetual succession. It is a popular saying that the directors may come and go the members may come and go, but the existence of a company remains forever. A company once incorporated remains alive unless and until it is wound up by complying with the provisions of Law.

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