Section 8 company

Section 8 Company Registration in India

A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 in India. It is formed for promoting charitable objectives such as education, religion, social welfare, environmental protection, or any other purpose beneficial to the community. Section 8 companies are allowed to use their profits for furthering their objectives and are eligible for various tax exemptions.

Documentation Requirements for Registration

To register a Section 8 Company in India, the following documents are typically required:

  1. Incorporation Application
  • Description: An application for registration in Form INC-12.
  • Details: Must include the proposed name of the company and details of the objectives.
  • Description: A document that outlines the company’s objectives and scope of activities.
  • Content: Should include:
    • Name of the company.
    • Objectives (charitable purposes).
    • Details of the registered office.
    • Description: The rules governing the internal management of the company.
    • Content: Should be tailored to reflect the non-profit nature of the organization.
    • Description: Verification documents for all proposed directors.
    • Documents: Acceptable identity proofs include:
      • PAN card
      • Aadhaar card
      • Passport
      • Voter ID
    • Description: Proof of residential addresses of all proposed directors.
    • Documents: Acceptable documents include:
      • Utility bills (electricity, water, etc.)
      • Bank statement
      • Rent agreement or property deed
    • Description: Required for all proposed directors for filing the incorporation documents electronically.
    • Details: Obtain a DSC from a certifying authority.
    • Description: A unique identification number for each director.
    • Details: DIN can be obtained through the Ministry of Corporate Affairs (MCA) while filing the incorporation documents.
    • Description: A declaration stating that the requirements of the Companies Act have been complied with.
    • Details: This declaration is typically made by one of the directors or a professional (CA/CS).
    • Description: A statement of the projected financials for the next few years, showing how the funds will be utilized.
    • Content: Should reflect the non-profit nature and proposed activities of the company.
    • Description: Evidence of the registered office of the proposed company.
    • Documents: Acceptable proofs include:
      • Utility bills
      • Lease agreement or property deed.
    • Description: If the registered office is located in a rented property, a NOC from the landlord is required.
  1. Memorandum of Association (MOA)
  1. Articles of Association (AOA)
  1. Identity Proof of Directors
  1. Address Proof of Directors
  1. Digital Signature Certificate (DSC)
  1. Director Identification Number (DIN)
  1. Declaration of Compliance
  1. Estimated Financial Projections
  1. Proof of Registered Office Address
  1. No Objection Certificate (NOC)

Steps for Registration

  1. Obtain DSC and DIN: Directors must obtain a Digital Signature Certificate and Director Identification Number.
  2. Draft MOA and AOA: Prepare the Memorandum and Articles of Association as per the requirements of a Section 8 Company.
  3. File Form INC-12: Submit the incorporation application along with the necessary documents to the Registrar of Companies (RoC).
  4. Obtain License: Upon approval, the RoC issues a license under Section 8, allowing the company to operate as a non-profit organization.
  5. Incorporation Certificate: Once the license is obtained, the company can be incorporated, and a Certificate of Incorporation will be issued.

Registering a Section 8 Company in India involves specific documentation and adherence to legal requirements. This structure is ideal for organizations focused on charitable and social objectives while enjoying certain benefits such as tax exemptions and limited liability. Engaging with legal professionals or company secretaries can facilitate the registration process and help ensure compliance with all statutory obligations.

 
     
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