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Why to register a Section 8 Company and not Trust and Society
Posted: Sep 14, 2022
INTRODUCTION
When a company is registered for the purpose of Not-for-profit objective then it is called Section 8 company registration. The Governing Section 8 Company Registration Act is Companies Act, 2013 as Section 8 company registration online and various compliances associated therewith are governed by provisions of Companies Act, 2013.
Key take aways of this article:
- Section 8 company registration Act
- Section 8 company registration online
- Section 8 company registration process
- Section 8 company registration documents
- Differences between Section 8 company, trust, society
SECTION 8 COMPANY REGISTRATION ACT
Section 8 company registration procedure and compliances thereafter are governed by Companies Act, 2013. It is regulated by Registrar of Companies (ROC), a wing of Ministry of Corporate Affairs (MCA).
SECTION 8 COMPANY REGISTRATION ONLINE
With the introduction of MCA 21 portal, the registration of various companies including Section 8 company registration and filing of most of the forms are done Online by visiting the MCA portal i.e. www.mca.gov.in. The motive of these companies is not money making but channelizing their incomes or profits towards promotion of social welfare, commerce, arts, education, environment protection, research, science etc. The registration procedure is similar to that of other companies, and it also requires an additional license.
Section 8 company can not use its profits or incomes to pay dividends to its members. The income is to be spent on the charitable objectives. MCA issues Certificate of incorporation (COI) under the hand of Registrar of Companies (ROC).
SECTION 8 COMPANY REGISTRATION PROCESS
The stepwise procedure for Section 8 company registration is as follows:
Step-1
Apply for DSCs of Subscribers to MOA and First Directors
Step-2
Apply for DIN of First Directors (DIN up to 3 directors may be applied in integrated incorporation form (form SPICe Plus)
Step-3
Checking name availability on MCA portal and Trademark Public Search
Step-4
Apply for name in Name Reservation (form SPICe Part A)
Step-5
Once name approval letter is received name stands reserved for initially 20 days which may be further extended up to 40 days (max name reservation period can be 60 days) on filing extension application and payment of additional fees.
Step-6
Apply for Incorporation of company in SPICe Part-B along with all other forms (AGILE-PRO-S, INC-9) and all attachments
Step-7
Once incorporation application is approved by ROC, he will issue Certificate of Incorporation (COI) under his hand. Along with this, PAN and TAN are also issued by the Income Tax Dept.
SECTION 8 COMPANY REGISTRATION DOCUMENTS
As of now you are aware of Section 8 Company Registration Process the next is to know about the Section 8 company registration documents, these are listed below:
- Self-attested copy of PAN card and Aadhar Card of Subscribers to MOA and Directors.
- Self-Attested copy of Bank Statement or Utility Bill (should not be older than 2 months) as present address proof of Subscribers and Directors.
- Self-Attested copy of Voter ID/ Driving License/ Passport as permanent address proof of subscribers and directors.
- Consent Letter in form DIR-2 and declaration as to non-disqualification and interest in other entities in form DIR-8 for first directors.
- Rent agreement/ NOC from owner and utility bill for Private Limited Company Registered Office address.
- Details regarding the share capital of the company including the authorized share capital and paid-up share capital of the company.
- Details about the business activity and NIC code of business activity of the company.
DIFFERENCES BETWEEN SECTION 8 COMPANY, TRUST, SOCIETY
Point of comparison
Section 8 company
Trust
Society
Governing Act
Societies are governed by the Societies registration Act, 1860
Trusts are governed by Indian Trusts Act,1882
Section 8 companies are governed by the Indian Companies Act, 2013
Registration Authority
Registrar of society
Deputy Registrar of state
Registrar of Companies
Main Registration documents
Document of Association and Regulation
Trust Deed
Memorandum of association and Articles of association
Stamp duty
No stamp duty is required to be paid on main instrument
According to Stamp Act of respective states stamp duty is applicable
On registration of MOA and AOA with Registrar of companies stamp duty is required to be paid.
Members required
Minimum 7 members
Minimum 2 persons are required
Minimum 2 in case of private company and 7 members in caser of public companies
We hope that you liked this article, still if you have any questions or suggestions for us, or if you yourself is looking for an opportunity for Section 8 Company Registration in India then please contact to our expert team at Compliance Calendar LLP at info@ccoffice.in or 9988424211.
A Private Company Registration in Gurgaon/Gurugram is the most popular way of business registrations among all the categories like small, medium, and large enterprises in India.