All about Section 8 Company
According to the legal language section 8 company is
- Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
- It intends to apply all its profits, income, or other earnings, in promoting these objects.
- Pays no dividend or income to its members.
Section 8 company is registered under companies act and will be treated as limited companies without the phrase “limited” being added to their name. Section 8 Companies are a legal form of “Non-Profit Organizations (NPOs) or Non-Governmental organizations (NGOs)”. In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.
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Corporate Genie Plans
Basic Plan
Rs. 7949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
Smart Plan
Rs. 18949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
- Preparation of Financial Statements
- MCA Annual Return Filing and DIR-3 Director KYC
Mega Plan
Rs. 24949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
- Preparation of Financial Statements
- Income Tax Return Filing
- MCA Annual Return Filing and DIR-3 Director KYC
Corporate Genie
Documents required for Section 8 Company
Copy of ID Proof of Designated Partners. (Voter ID, Driving License, Passport)
Copy of Address Proof of Designated Partners (Bank Statement/ Electricity bill/ Mobile bill/ Telephone Bill)
Passport size Photographs of Designated Partners.
Copy of PAN of Designated Partners.
Digital Signature Certificate of all the Designated Partners.
DIN of all the Designated Partners.
Property Ownership Documents of Registered office premises:
If property is owned: Electricity bill + Ownership Documents + NOC (if required)
If property is rented: Electricity bill + Rent Agreement + NOC
Apart from all these documents, Some other required documents will be prepared by your Corporate Professional i.e. CA/CS for submission to ROC.
Process to obtain registration
Fill the required details in the form.
Make payment.
Expert will ask for necessary documents.
We will apply for DSC & the DIN Number for Director.
Draft will be prepared for necessary documents like Consent, MOA & AOA.
All the documents will be submitted to ROC.
As when ROC approves application for Certificate of Business Commencement will be processed.
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We can work on any of the Accounting Software of your choice and deliver you the work on time.
Advantage of Section 8 company
The liability in section 8 company is limited.
Section 8 company is entitled to various tax exemptions by government of India.
Separate legal existence.
No minimum capital is been required.
FAQ
There are certain obligation which need to be fulfilled i.e.
The main objective should be for charitable purpose.
Minimum 2 members should subscribe to capital on incorporations.
There should be minimum 2 directors in the company, one of which must be Indian citizen and resident.
The main objective should be for charitable purpose.
Minimum 2 members should subscribe to capital on incorporations.
There should be minimum 2 directors in the company, one of which must be Indian citizen and resident.
The Section 8 company is popularly known as NGO. It is to be noted that NGOs can be registered as other business structure like trust, society, etc.
The promoters shall apply in e-form INC-12 for the approval of Central Government. The form is accompanied with MoA – AoA of the company, declarations from promoters, estimated statement of income & expenditure for next three years, etc.
Yes a section 8 company can take loan from its members and pay interest thereupon, subject to the provisions of Chapter V of the Act read with rules made thereunder.
Comparison
Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Act | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act,1932 | No specified Act | Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
Registration Requirement | Mandatory | Mandatory | Mandatory | Optional | No | ||||||
Number of members | 2 – 200 | Only 1 | 2 – Unlimited | 2 – 50 | Only 1 | ||||||
Number of Director/Partner | 2 – 15 | Only 1 | 2 – Unlimited | 2 – Unlimited | Only 1 | ||||||
Separate Legal Entity | Yes | Yes | Yes | No | No | ||||||
Act | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act,1932 | No specified Act | Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
Statutory Audit | Mandatory | Mandatory | Dependent | Not mandatory | Not mandatory | ||||||
Ownership Transfer ability | Yes | No | Yes | No | No | ||||||
Uninterrupted Existence | Act | Act | Act | Act | Act | ||||||
Foreign Participation | Allowed | Not Allowed | Allowed | Not Allowed | Not Allowed | ||||||
Tax Rates | Moderate | Moderate | High | High | Low | ||||||
Statutory Compliance | High | Moderate | Moderate | Less | Less |