Ideal corporate structure for non-profit and governmental organizations
(Takes < 20 days)
According to the Companies Act 2013, a Section 8 company is a non-profit organization that aims to promote arts, commerce, science, research, education, sports, charity, social welfare, religion, environmental protection, or other similar activities goals. The profits of such companies are utilized for promoting these objectives and are not distributed among the Company's members.
At Sahyog, we provide services for registering Section 8 companies in India. Our team of experts offers hassle-free and professional services to help you establish a Section 8 company quickly and efficiently. Contact us today to avail of our professional services for registering your Section 8 Company in India.
NGOs can be defined as organizations formed for non-profitable purposes such as Charity, religious, cultural, or educational. Their main sources of revenue are donations, government grants, membership fees, etc. They cannot distribute their profits and are required to spend their proceeds for non-profit activities.
Section 8 company registration is very important and easy to do just by following some specific steps.
A minimum of two directors is required if section 8 company is incorporated as a private limited company and three directors in case of a public limited company. The maximum number of members can be 200 in case of the private limited company registration and for a public limited company, there is no such limit.
Also, there is no requirement of minimum paid-up capital in the case of section 8 company.
A limited company's procedures and requirements are actually the same as those of a section 8 business. including all the obligations and rights that come with a limited corporation of such kind. They disagree primarily on the fact that a Section 8 company cannot use the terms "Section 8" or "Limited" in its name.
Being a non-profit organisation (NPO) does not preclude a company from earning a profit or income; rather, it simply means that while the company may do so, its promoters may not profit from it and that all profits must be used to further the company's goals.
However, a "NGO or a NPO" has been given some exceptions and benefits under Section 8 of the Companies Act 2013. The donors who make contributions to a Section 8 Company are qualified to verify the tax exemption for these contributions.
Some of the advantages are:
"Sahyog" promises to help you with all aspects of business registration. Let our knowledgeable staff manage the challenging process of "filling out paperwork, choosing and checking the availability of a name, designing a logo or trademark, trademark registration, etc." While focusing on the business-related issues that need your attention. We will support you at every step of the incorporation process. You can contact our team of specialists if you have any questions on relevant subjects.
Our package includes:
DIN for 2 Partners
Digital Signature For 2 Directors
Name search & approval
MOA/AOA
Registration Fees
Company Pan Card
Those who do not want to profit from this endeavour establish a Section 8 Company. Instead, they wish to commit their time to enhancing certain facets of the social system.
In addition to the prerequisites stated in its description above, the following conditions must be met in order to register as a Section 8 Company:
You must complete our short online questionnaire supplied above with your information. Name, full address, suggested company names, the number of directors and their information, authorised capital, etc.
To obtain DIN and DSC for the Directors, applications would be submitted to the ROC and have to be properly signed. We must first submit a DSC application. After it has been obtained, Form DIR-3 must be submitted to the ROC in order to obtain their DIN. These applications must be accompanied by an ID proof with an attested passport-sized photo, as well as an address verification for the director.
You make your preferences known, and we'll search for companies using those names. We will submit an application for a distinctive name for your company once you have approved the three alternatives. The "Reserve Unique Name" feature, often known as RUN, must be used to check name availability. In the beginning, just two names are to be suggested on Form INC-1. One resubmission is allowed after rejection. both instances in different formats.
We shall submit an application to the Central Government for the Section 8 Licence. Form INC-12 should be used in this situation. It must be sent in Form INC-13 along with "MoA". The "AoA" and the CA/CS/CWA Declaration must be sent in Form INC-14. Directors' or the applicant's declaration must be submitted on Form INC-15. The COI, or Certificate of Incorporation, serves as evidence that the firm actually exists. Also included in this is the distinctive CIN (Company Identification number).
We will apply for your PAN and TAN as soon as all procedures have been finished and your Section 8 Company has been registered. Forms "INC-7, 8, 9, 10, 22, DIR-2, and 12" and the necessary paperwork are submitted with the ROC. We'll get them prepared and send them your way right away.
The MCA incorporates a Section 8 Company.
The minimal number of Directors and Shareholders, among other conditions outlined in the Companies Act of 2013, must all be complied with.
Article 8 Only non-profit goals can be the basis for a company's creation. This company is not required to distribute any earnings or income to its shareholders.
This suggests that the income will either be invested back into the company or used to advance its primary goals, such as charity endeavors.
The operations of Section 8 Companies are controlled by the Board of Directors in accordance with their "MoA and AoA" as opposed to other trusts, which are administered by the Trustees in accordance with a Trust Deed.
The requirements outlined in the Companies Act, 2013, such as "Maintaining Book of Accounts, Audits, Return Filing, Board Meetings, etc.," must be followed by a "Section 8 Company."
A Section 8 Company is not allowed to alter the terms of its "MoA & AoA" without first getting the Central Government's approval.
The amount of shares a shareholder owns determines how many votes they have in a Section 8 Company. the same as every other company's.
The Income Tax Act's regulations must be followed by the Company.
Section 8 Companies must register with GST if they fall under the scope of the GST Act.
It may not convert itself to any other kind of company structure without complying with conditions, as applicable.
A Section 8 Company may accept public donations but is not permitted to acquire capital through deposits. Some of the methods it can use to raise money are listed below:
The first impression your Section 8 Company makes on the public is its name. Therefore, it's selection is crucial. It should be distinctive while still being appealing, pertinent, and illustrative. Consider the following ideas as you choose the name for your business.
Your "Section 8 Company" shall have as part of its name "Association, Federation, Chambers, Confederation, Council, Electoral trust Foundation, Forum, and other such words." To its name, however, Limited or Private Limited need not be included.
Your Section 8 Company's name should reflect the main goals of the organisation as outlined in its "MoA." For illustration, "Aware Health and Research Foundation" and "Nagarjuna Agricultural Research and Development Institute" are examples of Section 8 Companies. Additionally, the task they do is indicated by their names. This promotes goodwill and branding.
The proposed name must not be among the undesirable names listed in Rule 8 of the 2014 Companies (Incorporation) Rules. Your section 8 company's name shouldn't be derogatory, disrespectful to religious practises and beliefs, or contain terms or phrases that are slurs against a certain group of people.
The name should be simple and not too long. Moreover, it should be easy to say. A person should be able to memorise the name.
You are not permitted to give your business a name that is exactly the same as, identical to, or similar to a company name or trademark for which a trademark application has been filed. You can check at "Sahyog" to see if the name you're suggesting already exists or not.
Even if it's not required, every name must at least hint to the company's goals; nonetheless, if it does, the name must adhere to those goals.
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INC-1 |
To apply with the ROC for Name Approval. |
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INC-7 |
Application for the Company's Incorporation
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INC-8 |
Declaration to Apply for PAN & TAN
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INC-9 |
A declaration from each Director and MoA subscriber
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INC-12 |
This is an application for a licence to run a Section 8 company.
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INC-13 |
Memorandum of Association (MoA)
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INC-14 |
Chartered Accountant or Company Secretary's Certification
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INC-15 |
Each MOA Subscriber's Declaration (on properly notarized, non-judicial stamp paper costing Rs. 100/-)
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INC-16 |
License to operate as Company under Section 8 of the Companies Act, 2013
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INC-22 |
Notice of Location of the registered office
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DIR-2 |
Consent of Directors to act on behalf of the Company
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DIR-3 |
Application to ROC to get DIN
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DIR-12 |
Appointment of Directors of the Company |
The federal government may cancel the licence granted under the relevant statute if a Section 8 Company violates the law.
In the event of revocation, the business can be wound up. It could also be asked to simply add "Private Limited or Public Limited" to its name. And any remaining assets after paying off the obligations and liabilities of such a company will be given to another Section 8 company with comparable goals. The license may also be revoked if it is shown that the Company's operations were carried out dishonestly, contrary to its stated goals, or detrimental to the public interest.
Without affecting any other actions under the terms of this section, a firm that violates the Act's requirements will be subject to a fine that cannot be less than Rs. 10 lakhs and may even reach Rs. 1 crore. If the Directors and all other company officers are found to be in default, they might face up to three years in prison, a fine of at least $25,000 that could reach up to $25 lakhs, or both. if it can be demonstrated that the transactions were made in a dishonest manner. Every officer who is in default will thereafter be held accountable. Orders of this nature won't be implemented unless the company has
