A Complete Guide to Section 8 Company Registration in India
The Companies Act 2013 provides various types of companies, one of them being Section 8 Company.
The Section 8 companies are those companies that have charitable objectives for social welfare and do not intend to gain profit or dividend. This company is a legal entity that is recognized as a non-governmental or non-profit organization and its objective is to promote commerce, education, art, science, sports, protection of human rights, protection of the environment, and such other objective.
These companies have several benefits like Tax exemptions, Zero stamp duty, easy transferring ownership from one person to another, minimal share capital, a different legal entity from others, and many more.
The procedure for registration of section 8 company is:
- Application for name availability :
Reserve Unique Name (RUN) is the facility through which a name is reserved. The condition for Section 8 Company is that they need to include Foundation, Forum, Association, Federation, Chambers, and other words like this in their companies’ names.
This is the first step towards the registration of a company.
- Preparation of Memorandum of Association and Articles Of Association :
Section 2(56) of companies act 2013 give power to a Memorandum of Association (MOA). A memorandum of association is a charter that defines the activities and scope of an MOA. In a section 8 company an MOA is filed under Form INC-13 and it shall be signed by each subscriber.
Section 2(5) of companies act 2013 gives power to frame, alter articles of association. Articles of association are a document that manages the internal affairs of a company like the creation of by-laws or rules and regulations. It lays down ways in which objectives will be carried out. There is no prescribed format to file the Articles of Association for Section 8 company.
- Application for Registration :
After the approval of name an application under Form-12 is made to the registrar to attain a license under Section8 (1) of companies act, 2013. Various documents like those mentioned below are compulsory to be filed in.
• Memorandum of Association under Form INC-13
• Articles of Associaton
• Declaration of CS/CA/CWA about conformity of MOA and AOA with the provisions of section 8 given under Form INC-14
• Declaration by each person making the application under Form INC-15
• An estimate of future annual income and expenditure, specifying the sources for the next 3 years.
• Name approval letter.
This application is approved by the central government and the fee of this form is Rs. 2000/-
- SPICe 32 Form :
After the above approval the last step is to file a SPICe 32 form. SPICe means a “Simplified Proforma for Incorporating a Company Electronically” Through these various applications for name reservation, incorporation of the company, allotment of DIN, application for PAN/TAN is made in fast track mode.
Attachments with SPICe 32 are
- Memorandum of Association in the same format as above
- Articles of Association
- Declaration and consent of Directors under DIR-2
- Affidavit by first subscriber
- PAN card and aadhar card of first subscribers and directors
- Proof of registered office
- Latest utility bill
- NOC of owner/director if the registered office is in use on lease/rent
- License issued in form INC-16
After the approval under SPICe 32 the Section 8 company will be officially registered.
Several legal provisions are provided for ‘the number of directors’ in public and private companies but any such criteria’s is removed for section 8 company. This type of company is formed to promote social welfare and as there is existence of good faith and well being of others, the legal requirements for registration of Section 8 company has reduced.
How to Register Section 8 Company in India ?
You just have to follow these simple steps in order to register Section 8 Company in India :-
- Visit Filinglounge.com
- Fill up Company Registration form with the basic details
- Make the online web payment in a secure way via any bank debit card/credit card/net banking/UPI/Wallets.
- Your application will be processed by one of our team members.
- Get the certification in the email as per our timeline & easily start your business.
If you want to apply for Section 8 Company Registration then get in touch with us today or follow us on our Facebook Page.