Section-8 Company Registration

A Section-8 Company is a type of company formed with an objective to promote commerce, art, science, sports, research, education, religion, protection of the environment, charity, or other social objectives. It intends to apply its income and profits towards promoting these objectives and prohibits the distribution of dividends to its members.

Advantages of Section-8 Company Registration

  • Limited Liability Protection
  • For social welfare activities
  • Tax Benefits and Rebates
  • Best option for opening an NGO
  • Less Procedural Compliances

Minimum Requirements

  • Minimum Two Directors
  • Minimum Two Shareholders
  • No Minimum Capital required
  • Maximum Fifteen Directors
  • At least One Director must be an Indian resident

Governing Act

A Section-8 Company is regulated by the Indian Companies Act, 2013 (and its amendments) and the rules & regulations framed thereunder. It is administered by the Ministry of Corporate Affairs (MCA) through the Offices of Registrar of Companies (RoC).

A Section-8 Company is similar to a Trust or Society, but unlike them, it is registered under the Central Government’s Ministry of Corporate Affairs (MCA), making it more credible among donors, government agencies, and stakeholders. Also, there is no requirement to use the words "Limited" or "Private Limited" in its name.

Benefits of Section-8 Company Registration in New Delhi

  • No minimum paid-up capital required
  • Exemption from stamp duty during registration
  • Tax deduction benefits under Section 12AA and Section 80G of the Income Tax Act
  • Firms can become members
  • Less procedural compliance compared to other entities

Requirements for the Incorporation of a Section-8 Company

1. Documents Required

  • Minimum Two Directors (For a Private Limited Company) / Minimum Three Directors (For a Public Company)
  • Minimum Two Members (For a Private Limited Company) / Minimum Seven Members (For a Public Company)
  • Self-attested PAN Card of Members and Directors
  • Identity Proof (Passport/Voter ID/Aadhar Card/Driving License)
  • Self-attested Address Proof (Bank Statement/Electricity Bill/Telephone Bill/Mobile Bill) - Not older than 2 months
  • Passport-size photographs of all Members and Directors
  • Business Address Proof (Owned/Rented/Leased Property Documents, NOC from the Property Owner, and Utility Bill - Not older than 2 months)

2. Required Information

  • Authorized and Paid-up Share Capital of the Proposed Company
  • Place of Birth and Duration of Stay of Members and Directors at Present Residential Address
  • Occupation of Members and Directors
  • Proposed Object/Business of the Company
  • Educational Qualification of Members and Directors
  • Email IDs and Contact Numbers of Members and Directors

Process of Section-8 Company Registration in New Delhi

1. Application for Name Reservation

  • The first step is to apply for name reservation using SPICe+ (Simplified Proforma for Incorporating Company Electronically) at www.mca.gov.in.
  • Before applying, check name availability on MCA and Trademark Registry to avoid conflicts.
  • The SPICe+ form consists of PART A (for name reservation) and PART B (for incorporation and other services).

2. Filing of SPICe+ Part B

  • Fill in details in SPICe+ Part B and attach the following documents:
    • Memorandum of Association (INC-13)
    • Articles of Association
    • Declaration (INC-14) by a CS/CA/CMA stating compliance with Section 8 of the Companies Act
    • Estimation of future annual income and expenditure for the next three years
    • Statement of assets and liabilities
    • Declaration (INC-15) by each promoter
    • List of promoters and proposed directors with their DIN/PAN details
    • Consent to act as Director (DIR-2)

3. Conversion of SPICe+ Form into PDF

  • Convert the SPICe+ form into a PDF format and affix Digital Signatures (DSC).

4. Filing of AGILE-PRO

  • The AGILE-PRO form includes:
    • Mandatory registration for EPFO and ESIC
    • Mandatory opening of a Bank Account
    • Option to obtain GSTIN
  • Convert it into PDF and affix DSC.

5. Upload Forms on MCA Portal

  • After affixing the DSC, upload all forms on the Ministry of Corporate Affairs (MCA) portal.

6. Declaration by Subscribers & First Directors

  • INC-9 Declaration (generated in PDF format) must be submitted electronically.

After registration, a Section-8 Company can effectively promote its objectives, benefiting from tax exemptions and credibility while enjoying limited liability protection. It is a preferred structure for NGOs working in various sectors, including education, healthcare, environment, and social welfare.

For more details on Section-8 Company registration, feel free to contact us!

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