Section 8 Company Registration
In the ordinance with The Companies Act 2013, Section 8 gives a unique setup for individuals or organizations who want to serve society. It permits the creation of new companies with the idea of promoting a wide sphere of nonprofit purposes, in the fields of art, science, sports, research, education, religion, social welfare, charity, environment protection, or any other factor for common citizen utility.
The companies under this work as non-profit organizations within a strong legal mechanism, which provides various advantages over conventional trusts and societies. Any Individual or organization who is interested in a great cause and is capable of starting a non-profit organization in India can register under section 8, which provides an adequate structure to maximize the impact of the cause. Henceforth, the below-provided information will give you step by step guide for the key aspects of section 8 company registration. Which will help you with the process.
Why Choose a Section 8 Company?
Before starting with the enrollment process, there is a strong need to understand the reasons why Section 8 companies are a good option for your greater cause.
Enhanced Credibility and Trust: The Section 8 companies registered under the Companies Act 2013, receive a highlighted assurance for credibility and trust as compared to nonregistered trusts. This system ensures that the company is operating under a systematic mechanism with strict working conditions.
Tax Benefits: The companies registered under Section 8 companies get benefits of Tax Exemption under the Income Tax Act, of 1961. This kind of fair tax behavior works as bait to attract funding and to ensure the economic stability of the company.
Limited Liability: Section 8 companies give a structure of limited liability to their members. It gives safety to the personnel assets of the members in case of any financial crisis in the company, which keeps the peace of mind in place with encouragement to the participants.
No Minimum Capital Requirement: There are no conditions applied to have a minimum paid-up share capital for Section 8 Companies.
Perpetual Existence: The companies registered avail enduring existence, which means that the company's existence will not be affected in case of death or departure of the members. This provides a continuous momentum to keep up with the work stability in working for companies objective.
Wider Reach and Impact: The systematic format of section 8 companies enables efficiency, transparency, and accountability. Which attracts more stakeholders, volunteers, partners, and donors to expand the company.
Registration Process in India
The process is a multi-step way under the Registrar of Companies (ROC) for Section 8 companies.
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Obtain DSC and DIN: All the directors need a Digital Signature Certificate for Online process and a Director Identification Number (DIN)
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Name Approval: By utilizing FORM INC-1, the company has to reserve a unique name that depicts the non-profit nature of the company.
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Obtain License: This important step needs an application for ROC with Form INC-12, which includes a draft of the Memorandum of Association (MoA) and Articles of Association (AoA). The articles make ensure that all the objectives go in hand with Section 8 Requirements.
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File Incorporation Documents: Via a SPICe+ form, filing of MoA and AoA is done, after the licensed is done.
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Certificate of Incorporation: After the verification process, The ROC issues the certificate, as the company is legally recognized to operate freely
Documents Required for Registration
To make the process smooth, proper documentation is a crucial part, The below are the documents listed for the requirement to run the cause of public welfare.
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Identity and Address Proof: PAN Card, Aadhaar Card, passport, or driving license. The copies are required for all the documents of directors and member
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DIR-2: Consent form for directors.
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INC-9: Statement of compliance with the Companies Act.
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MoA and AoA: Documents summarizing the non-profit's goal, laws, and constraints.
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Registered Office Proof: Utility bill, rent and lease contract, or NOC from the property owner.
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Financial Projections: A bank statement of accounts for the next three years.
Seeking Professional Assistance
The process can be handled by the organization independently, but going for the help of professionals is favorably suggested. Considering StartupFlora, as your business consultancy firm will provide your business with expertise in all spheres. The company know-how guide with the complexity of registration under Section 8 companies in India. We will help with legal requirements with valuable guidance which will be customized based on the business's unique idea and needs. In particular, StartupFlora can simplify the process, by helping with documentation and legal Compliance which will help the company to focus on its core mission for the greater good.
Registering for a Section 8 Company is a big step in bringing your social idea into reality. Consultancies like ours as StartupFlora comes in play to help companies in the registration process under Startup India Registration, Section 8 Companies online Registration and others and help the companies make a positive impact on society.