The principle justification for a company to register itself as a Section 8 Company is to develop non-profit objectives. The objective is to include Trades, business, arts, charity, education, religion, climate, security, social government assistance, sports, and examination.
What Is a Section 8 Company in India?
In India, typically, non-benefit organizations are registered with the Registrar of Societies as general public or as a non-benefit company (Section 8 Company) under the Companies Act of 2013.
You need to recall the accompanying points in the event that you need to register as a Section 8 Company:
There should be at least two Directors.
Moreover, there is no necessity of least settled up capital on account of a Section 8 Company.
Benefits of a Section 8 Company
The benefits of these organizations are utilized in advancing the targets that are upheld by the company
Besides, they aren’t distributed as profits to investors
Distinction Between a Section 8 Company and a Section 25 Company
A Section 8 Company is equivalent to the Section 25 Company under the old Companies Act, 1956. According to the new Companies Act of 2013, Section 25 has now become Section 8.
Qualification Criteria to Have a Section 8 Company
On the off chance that you need to open a Section 8 Company in India, you need to recall the accompanying focuses and meet the accompanying rules. Also, every one of the standards must be affirmed as per the general inclination of the local government.
Your company should advance in science, commerce, education, art, sports, research, charity, social welfare, environmental protection, or some other comparative causes
Further, your company ought to contribute every one of the benefits or pay created after fusing to such objectives as it were.
Your company doesn’t expect to deliver any profits to its members.
Documents Required to Register a Section 8 Company
If you plan to start a Section 8 Company, you need to have the accompanying documents:
Director Identification Number (DIN)
Digital Signature Certificate (DSC)
Memorandum of Association
Article of Association
Photographs (passport size)
Proof of identity i.e. Aadhaar Card, passport, voter ID
Director details
Address proof
Bank details
System to incorporate a Section 8 Company
Getting a computerized signature for Directors
A Section 8 Company will be administered by a governing body, like a private limited company. During the cycle of joining, a DSC is gotten for every one of the proposed chiefs. Also, the accompanying documents should be submitted:
Pan or Aadhar card.
Drivers license/identification/elector ID/government provided ID.
Further, subsequent to presenting these documents, the candidate should finish an OTP and eKYC methodology to acquire a DSC in their name.
Section 8 Company Name Approval
Concurrent to the computerized signature application measure, an application for name endorsement can be started for the Section 8 Company to the MCA. Moreover, guarantee that the company’s name closes with a word like foundation, forum, association, federation, chambers, board, or an electing trust.
You can just register your company with an endorsed name. Further, you will have 30 days to begin your incorporation process once the name is endorsed.
Memorandum of Association (MoA) and Articles of Association (AOA)
They are drafted in the wake of acquiring the name endorsement. Further, the Memorandum of Association MOA characterizes the extent of a company’s activities. An Article of Association is a report that directs the internal administration of the company and is another significant archive.
Further, MOA of Section 8 Company should be in structure INC-13 while there is no configuration recommended for AOA for Section 8 Company.
Documenting of SPICe 32 Form
After getting the proposed name endorsement, you can proceed with recording structure SPICe 32. Also, alongside the recording, you need to document the MOA and AOA.
In addition, you will likewise be needed to proclaim that the MOA and the AOA have been drawn up incongruity with the arrangements of Section 8 and rules made thereunder.
Declaration of individuals applying in Form INC-15
Name approval letter
Consent and declaration of first directors in Form DIR-2
Self-declaration by first subscribers in Form INC-9
PAN and Aadhaar of first directors and subscribers
Proof of registered office
Utility bills
NOC of the owner, if the office is leased
All this work can be overpowering, and you will require the assistance of a specialist. Additionally, PickMyCompany will deal with the whole process for you and clear the entirety of your doubts.