Section 8 Company Registration
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.
A Non profit making company prohibits from paying any Dividend to its members.
A Section 8 company shall register itself under charitable objects, the Central Government shall issue a License in prescribed manner allow that person or association of person to register as Private Limited or Public Limited Company.
Documents required for company registration
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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.
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.
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.
ADVANTAGES OF SECTION 8 COMPANY
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.
- Name approval comes next, which should not violate the Naming Guidelines of Ministry of Corporate Affairs.
- 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.
Documents required for company registration
- 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 jpeg.
- 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.
FREQUENTLY ASKED QUESTIONS
If your are registering your Section 8 Company as Private Limited, then it is 2 members, but if your registering it as Public Limited, then you should have 7 members.
Yes, only object with non-profit motive can able to register themselves for Section -8 company.
No, INC-29 is not applicable for Section-8 Company. Since, there is need for getting license from the RD for Section 8 companies, INC-29 facilities are not available for this particular company.
Yes, you can convert your Section-8 Company into Private Limited Company in future and options are available.
Dobizindia.com will complete the entire registration within 20-25 days of time and this time frame is not accurate. Since we need to obtain Licence from the Regional Director, the time frame may change according to the approval.
STARTING A BUSINESS
Many founders are confused about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship. Each of these has very specific advantages and disadvantages. There is no one type for all businesses. A private limited company registration, for example, would be a good fit for any venture that will look for funding at a later stage. You can contact dobizindia for all the advice you need. We assure you of great service at a reasonable price.
In modern business, there is no other asset as valuable as intellectual property, and yet so many startups end up neglecting it. But this is surely not advisable, as trademarks, copyrights and patents ensure that you have sole rights to your creation, be it your brand, your designs or your inventions. At dobizindia, we are well equipped to handle all your IP requirements. We perform trademark registrations in just three days, can file a copyright registration for all your software, pictures, audio and video content, and can connect you to patent attorneys to conduct a patent search and file your patent applications.