Not every company in the business world has anything to do with making money. Some organizations place a higher priority on the general good, environmental effects, and social reasons. That type of company is called a Section 8 Company. However, what is a Section 8 Company and how may one be registered? Let's explore fully into this subject and examine its significance, the Registration procedure, and all the information you require to form a Section 8 Company.
What is a Section 8 Company?
According to India's Companies Act of 2013, a Section 8 Company is a particular type of business. It is a business that has been registered with the purpose of advancing social welfare, religion, business, the arts, science, sports, education, research, or any other beneficial endeavor. Non-profit organizations that prioritize activities that benefit the general public are mostly covered under this section. Usually, these businesses are founded to improve society rather than distribute profits to shareholders.
Who Can Form a Section 8 Company?
Any individual, group of individuals, or organization can create a Section 8 Company. The promoters, however, are responsible for making sure that the business's operations are in line with the non-profit goals specified in the Companies Act. In essence, it can be established by people who want to support public welfare, charitable, or social causes, including research organizations, educational institutions, or non-governmental organizations.
Documents Required for Section 8 Company Registration
A collection of paperwork must be presented to register a Section 8 company. Usually, these consist of:
Proof of Identity: The director's passport, voter ID, or Aadhar card serves as proof of identity.
Proof of Address: A rent agreement or utility bill that provides the business's address.
Director Information: Directors' digital signatures, Director Identification Number (DIN), and, if the property is rented, a no-objection certificate from the property owner.
Articles of Association and Memorandum: The Company's goal, authority, and internal operation such as plan, policies, strategy, etc are given in AOA and MOA
Additional Certifications: A certification about the company's goals and financial health from a licensed chartered accountant or company secretary in practice.
Section 8 Company Registration Process
Starting a Section 8 Company involves several steps, which are as follows:
Step 1: Get a Digital Signature Certificate (DSC): The first step of section 8 company registration is getting a Digital Signature Certification. All directors must get a DSC to sign online papers before registering.
Step 2: Apply for Director Identification Number (DIN): Apply for a Director Identification Number (DIN) in step two. Each director must have a DIN as required in any corporation. For DIN online can be applied
Step 3: Approval of the Company Name: It is necessary for the Registrar of Companies (ROC) to approve the suggested company name. It must be original and free from violating trademarks.
Step 4: Articles of Association(AOA) and Memorandum of Association (MOA): AOA and MOA give inforamtion on the company details such as motive, strategy, systems, plan, procedures, and other factors.
Step 5: Send the Registrar of Companies (ROC) the necessary paperwork: The necessary documents must be submitted to the ROC for approval as soon as they are prepared.
Step 6: Get Certificate of Incorporation: Following document approval, the ROC will issue the Certificate of Incorporation, designating the Section 8 Company's official registration.
Cost of Registering a Section 8 Company
The following expenses are associated with registering a Section 8 company:
Fees for government registration
Fees for legal assistance in preparing the AOA and MOA
In conclusion
To summarize, a Section 8 Company is the best legal form for people and organizations involved in health, education, social welfare, and other charitable work. Despite the somewhat complicated registration process, those committed to improving society will find the advantages of validity, legal protection, and tax breaks to be worth the effort. Registration Guru is one of the leading company registration platforms where Section 8 Companies can register easily.