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Section 8 Company Registration

Section 8 Company Registration is a new form of Not for Profit Organisation which can be incorporated as a company under the Companies Act, 2013. For the social activities such as to promote commerce, art, science, research, and social welfare, etc.

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Section 8 Company Registration

Companies Act, 2013 introduced section 8 Company which is similar to Section 25 company of the Companies Act, 1956. The general purpose of starting a section 8 company is to do social or welfare activities where the profits of the company can not be distributed as the dividend to its members. Section 8 Company registration procedure is different from the incorporation of a private limited company or an LLP. A separate license of section 8 company is required to be obtained before incorporation by applying to the central government of India. To get the license for section 8 company a statement of the objects of the company and projected statement of income, expenditure, assets and liabilities for three years is required to be submitted to the regional director of the ministry of corporate affairs. The detailed conditions, documents required and the procedure of incorporation of section 8 company is as under..

General Condition

01
Profits to be applied only for the promotion of object of the company and there is prohibition on payment of dividend to its members.
02
Name shall not include Private Limited or Limited at the end and it shall end with words like, Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust
03
The object of the section 8 Company shall be to promote Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity & Protection of Environment

Director / Shareholders Documents

01
Colour Photographs - Two front facing picture with plain background
02
Pan Card, (Name on pan card must match with the database of Income Tax Department)
03
Identity Proof (Any one among Aadhar Card, Passport, Driving License or Voter ID Card)
04
Address Proof: Bank Statement or Passbook with first and last bank entry page, electricity bill, telephone bill, or any utility bill

Registered Address Proof

01
Proof of the registered address of company: Sale Deed, electricity bill, tax paid receiptor anyother utility bill not older than 2 months.
02
No objection Certificate from the owner of the premises
Attestation Requirements: All the documents of director / shareholder are required in two sets, One set must be self-attested while the other set must be attested by a Gazetted Officer or Postmaster or a Bank Manager. The attesting authority must attest the documents using the blue ink pen and affix the official seal.
 

Process of Section 8 Company Registration

STEP 01
Digital Signature of Director (DSC)

DSC is the equivalent of physical or paper certificates in digital format. As the application for section 8 company registration is filed online with Digital Signatures of the director, hence the process starts with the issuance of the digital signature for all the directors/promoters. For issuance of a DSC, the Photo, ID and Address proof is to be submitted along with signed forms

 Digital Signature of Director
STEP 02
DIRECTOR IDENTIFICATION NUMBER

It is a permanent number issued by the registrar of companies, as a unique identification number to the director of a company or designated partner of the LLP. As per new companies Act, 2013 no person can hold an office of the director unless he is issued a DIN. For allotment of DIN, an application to ROC is made with Photo, Attested ID and Address proof duly attested by CA, CS or CMA

Director Identification Number
STEP 03
Name Approval Of Section 8 Company

Name of each company must be unique, new and should not be same or similar to an already registered company, LLP or a Trademark. After the DSC and DIN allotment, an application is made to the ROC for approval of name; the registrar is vested with discretionary powers concerning approval of name. Our advisors shall be a help to you while deciding the name of the company.

Name Approval Of Section 8 Company
STEP 04
Central Government License to Start Section 8 Company

An application is moved before the regional director of the ministry of corporate affairs; the application must be accompanied by a statement of the object of the proposed section 8 company and a projection of three years profits and loss, its projected statement of assets and liabilities. The regional directors are vested with discretionary powers to approve an application for licesnse.

Central Government License to Start Section 8 Company
STEP 05
MOA & AOA Drafting of Section 8 Company

The Name, object, state in which company is registered, the maximum amount of capital which it can raise (Authorised Capital), & a declaration that the company is a limited company are written in a document known as Memorandum of Association (MOA). The Internal rules are framed as articles of association. The promoters need to adopt and sign MOA & AOA, which is then filed with the ROC.

MOA & AOA Drafting of Section 8 Company
STEP 06
Company Incorporation

All the steps as described below finally culminates into the registration of the section 8 company with the issuance of the certificate of Incorporation. With spice e-form, DIN, name Approval and Incorporation related documents like affidavits; declarations are filed at once. However, only one name can be suggested in the spice form. The certificate of incorporation is the conclusive proof of the registration of the company.

Company Incorporation
STEP 07
PAN, TAN & BANK ACCOUNT

Income tax Department allots a unique 10 Digit alpha numeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions every tax payer need to obtain a Tax Deduction Account Number. These identification numbers are essential to operate and comply. The opening of a bank account is the last step in setting up a business

PAN, TAN & BANK ACCOUNT