section-8-company-registration at leegtech

Description

A Section 8 Company is a type of non-profit organization that can be registered under the Companies Act, 2013. Key features include:

Charitable Objectives: The company is formed for promoting charitable activities and cannot distribute profits to its members.

Limited Liability: Members’ liability is limited to their shareholding.

Separate Legal Entity: The company can own property, incur debts, and sue or be sued in its name.

Perpetual Succession: The company’s existence is not affected by changes in membership.

Tax Benefits: Eligible for various tax exemptions under the Income Tax Act.

Documents Required

To register a Section 8 Company in India, the following documents are typically required:

Directors and Shareholders’ Documents:

PAN Card (mandatory for Indian nationals).
Passport (if the applicant is a foreign national).
Address Proof (Aadhaar card, voter ID, passport, or driving license).
Residential Proof (latest bank statement, electricity bill, or phone bill not older than two months).

DOCUMENTS REQUIRED

Proof of registered office address (utility bill, rent agreement, or sale deed).
NOC from the owner of the premises.
Memorandum of Association (MoA) and Articles of Association (AoA) detailing the company’s objectives and rules.

Additional Documents:

Digital Signature Certificate (DSC) for all proposed directors.
Director Identification Number (DIN) for all proposed directors.
Income and Expenditure statement, if applicable.

REGISTRATION PROCESS

The registration process for a Section 8 Company in India involves several steps:

Obtain Digital Signature Certificate (DSC):

All proposed directors must obtain a DSC from authorized agencies.

Obtain Director Identification Number (DIN):

Apply for DIN by filing Form DIR-3 or through the SPICe+ form.

Name Reservation:

File the Part A of the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form to reserve the company’s name.

Drafting of MoA and AoA:

Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) specifying the charitable objectives.

License Application:

Apply for a license under Section 8 of the Companies Act, 2013 by filing Form INC-12 along with the MoA, AoA, and other relevant documents to the Registrar of Companies (RoC).

Incorporation Filing:

Once the license is obtained, file the SPICe+ form (Part B) along with the required documents to the MCA for incorporation.

PAN and TAN Application:

Submit the application for PAN and TAN along with the SPICe+ form.

Certificate of Incorporation:

Once the MCA approves the incorporation documents, a Certificate of Incorporation is issued, confirming the company’s formation.

FAQs

Q1: What are the benefits of registering a Section 8 Company?

Benefits include tax exemptions, limited liability protection, separate legal entity status, perpetual succession, and enhanced credibility for receiving donations and grants.

Q2: Can a Section 8 Company distribute profits to its members?

No, a Section 8 Company cannot distribute profits to its members. Any profits earned must be reinvested in furthering the company’s objectives.

Q3: What is the minimum number of directors required to form a Section 8 Company?

A minimum of two directors is required to form a Section 8 Company.

Q4: Can a Section 8 Company alter its objectives after incorporation?

Yes, but altering the objectives requires approval from the Registrar of Companies (RoC) and the Central Government.

Q5: Is it mandatory to hold annual general meetings for a Section 8 Company?

Yes, it is mandatory to hold annual general meetings and comply with other regulatory requirements similar to other companies registered under the Companies Act, 2013.

Q6: How long does it take to register a Section 8 Company in India?

The process typically takes around 20-30 business days, subject to the timely submission and verification of documents and the approval of the license.

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