Section 8 Company Registration In India
(Price Start at $ 242 /-)
Section 8 of the Companies Act provides certain entities an exclusive license. There are three major requirements for granting the license.
- The organization should be benevolent in nature.
- Earnings and profits should go toward these goals.
- The corporation should not issue dividends to its shareholders.
Incorporating a Section 8 corporation in India has several benefits, some of which are described below:
- Tax Exemption: Section 8 firms are excused from paying taxes since their revenues are used for charitable purposes, delivering a large financial benefit for its activities.
- No Minimum Capital Requirement: Section 8 organizations can alter their capital structure based on their growth, eliminating the need for a minimum capital requirement.
- No Stamp Duty: Section 8 firms are free from paying stamp duty throughout the registration procedure, lowering their costs.
- Separate Legal Entity: Section 8 corporations have their own legal identity and continuous life, which adds credibility and autonomy.
- Enhanced Credibility: Strict legal compliance procedures guarantee that Section 8 firms are credible. When compared to charitable societies and trusts, they have a greater level of credibility and trustworthiness.
- No Title Required: Section 8 corporations are able to pick a name without having to include the word ' Private Limited or Limited' in its name, providing for greater naming flexibility.
Eligibility Criteria for Section 8 Company Registration in India
The following are the eligibility requirements for a Section 8 company registration:
- In India, an individual, HUF, or limited corporation can register a Section 8 company.
- Two or more people who will function as shareholders or directors of the company must meet all of the Section 8 Company registration criteria.
- At least one of the directors must be a resident of India.
- The objectives of the company should include charitable or not for profit activities like the promotion of sports, social welfare, the advancement of science and art, education, and financial assistance to lower income groups.
- The surplus generated must be used to meet the principal objective of the section 8 company registration.
- Founders, members, and directors of the company cannot be paid remuneration or dividends.
- There should be no direct or indirect disbursement.
Documents Required for Section 8 Company Registration in India
The below mentioned documents are required to complete the process of incorporation for a Section 8 company in India:
- Articles of Association and Memorandum of Association.
- Declaration by the first director(s) and subscriber(s) (an affidavit is not required)
- Proof of office address, such as a copy of utility bills such as electricity, water, or gas bills.
- Copy of an overseas corporate body's certificate of incorporation (if any)
- A resolution passed by the company’s promoter.
- Nominee Consent (INC-3)
- Nominee and subscriber residence and identification verification.
- Applicant's identity and residential proof.
- Digital Signature Certificate.
- Declaration of unregistered companies.
Procedure to register section 8 company in india
The mentioned below steps are involved in the Incorporation of Section 8 company in India:
Step 1 is to obtain a Digital Signature Certificate
The first step is to secure a Digital Signature Certificate (DSC) for the Section 8 Company's intended directors. This certificate is necessary for online document submission to the Ministry of Corporate Affairs.
Step 2: Obtain a Director Identification Number (DIN)
After acquiring the DSC, the potential directors will be allotted a Director Identification Number, if not already obtained. The DIN is a unique identifying number given by the Ministry of Corporate Affairs (MCA) to persons seeking to be directors of a business in India.
Step 3: Secure the Company's Name
The next step is to reserve the prospective Company's name with the MCA. The Section 8 company name must be distinct and not comparable to any other company name. The company name is reserved by filing online application with MCA.
Step 4: Submit the Incorporation Application
Following the approval of the business name, the next stage is to apply for Section 8 business incorporation. The application for incorporation is submitted in e-forms, together with the Memorandum of Association and Articles of Association of the Company.
Step 5: Obtain a Section 8 Company License
Following the approval of the incorporation application, the Section 8 Company must get a license, which is allotted by the Central Registration Centre (CRC)
Step 6: Obtain an Incorporation Certificate
Following the receipt of the license, the MCA issues a Certificate of Incorporation in Form INC-16. This document validates the Section 8 Company's formation.
Time required to register section 8 company in india
In 12-15 working days, a Section 8 company can be formed. The time it takes to register will be determined by the client's submission of required paperwork and the speed with which government approvals are obtained. Please pick a distinctive name for your Company and make sure you have all of the essential paperwork before beginning the registration process.
How seedling can help you with section 8 company registration
Seedling can help you escape the burden of the Section 8 registration company process's difficult phases and proper documentation. You may rely on Seedling's expert services and licensing support.
Most common question about our services
Is there a maximum number of members in a Section 8 corporation?
The number of members in a Section 8 Company has no upper limit. The firm can have as many members as it needs to achieve its goals.
Is it necessary for me to be there in person to establish a Section 8 Company?
No, physical presence is not required to form a Section 8 company. The incorporation procedure can be conducted online or with the help of legal specialists.
What does Section 8 Company Registration in India serve?
The major goal of Section 8 Company registration in India is to promote philanthropic, social welfare, and non-profit goals. Rather of paying dividends to shareholders, some firms are created to use their income to benefit society.
Can a Section 8 company obtain foreign investment?
Yes, Section 8 companies can obtain foreign capital with government clearance and in accordance with the Foreign Contribution (Regulation) Act, 2010.
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