Section 8 Company Registration in India

What is a Section 8 Company?

A Section 8 Company is a specific kind of business as defined by the Companies Act of 2013 in India. It is a company that has been registered to further commerce, religion, the arts, science, sports, education, research, social welfare, or any other worthwhile cause. Generally speaking, this section covers nonprofits that prioritize public-benefitting initiatives. Instead of giving earnings to shareholders, these companies are typically started with the intention of enhancing society

Who Can Form a Section 8 Company?

A Section 8 Company may be formed by any individual, group of individuals, or organization. However, the promoters are in charge of making sure the company's activities line with the non-profit objectives outlined in the Companies Act. In summary, it can be founded by anybody who wishes to promote social, charitable, or public welfare purposes; this includes non-governmental organizations, research groups, and educational institutions.

Documents Required for Section 8 Company Registration

To register a Section 8 company, a number of documents must be submitted. Typically, these include:

Identity Verification: The directors' identity is verified by their Aadhar card, passport, or voter ID.

Proof of Address: A utility bill or rental agreement that lists the company's address.

Director Information: Director Identification Number (DIN), digital signatures of the members, and, if the property is rented, a certificate of no objection from the owner.

Memorandum and Articles of Association: AOAs and MOAs outline the company's objectives, powers, and internal operations, including plans, policies, and strategies.

Additional Certifications: A certification from a certified chartered accountant or company secretary in practice regarding the objectives and financial well-being of the business.

Section 8 Company Registration Process: Step-by-Step Guide

Starting a Section 8 Company involves several steps, which are as follows:

The following are the stages involved in starting a Section 8 company:

Step 1: Obtain Digital Signature Certificate (DSC): Obtaining a Digital Signature Certification is the first step in registering a section 8 business. In order to sign online documents before registration, all directors must obtain a DSC.

Step 2: Request a Director Identification Number (DIN): In step two, request a Director Identification Number (DIN). Every director is obliged by law to have a DIN in any corporation. Online applications are available for DIN.

Step 3: Company Name Approval: The proposed company name must be approved by the Registrar of Companies (ROC). It should have the characteristic of being unique and free of trademark infringement.

Step Four: Memorandum of Association (MOA) and Articles of Association (AOA): In essence, AOA and MOA provide information about the company, including its goals, plans, processes, procedures, and other aspects.

Step 5: Forward the required documents to the Registrar of Companies (ROC): As soon as the required paperwork are ready, they must be sent to the ROC for approval.

Step 6: Obtain Certificate of Incorporation: The ROC will issue the Certificate of Incorporation, signifying the Section 8 Company registration, after document approval.

Cost of Registering a Section 8 Company

The following expenses are associated with registering a Section 8 company either it is online

• Fees for government registration

• Fees for legal assistance in preparing the AOA and MOA

The cost of getting DIN and DSC

The overall cost often falls between INR 5,000 and INR 15,000, though it might vary depending on factors including professional costs and the state of registration.

In conclusion

To summarize, a Section 8 Company is the best legal form for people and organizations involved in health, education, social welfare, and other charitable work. Despite the somewhat complicated registration process, those committed to improving society will find the advantages of validity, legal protection, and tax breaks to be worth the effort.

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