Section 8 Company

Rs 24,999.00.  For Section 8 Company Incorporation in India

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No
Min Capital

 

For
NGO/NPOs

 

Tax
Exemption

 

Greater
Flexibility

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Section 8 Company Registration Process


25 Days

 
  1. Digital Signature Certificate

    1 Working Day

    A Digital Signature Certificate (DSC) is generated and authenticated by a licensed certifying authority. It is an electronic signature that is affixed to verify electronically transmitted documents. A DSC is mandatory for all existing and proposed Directors of a company, which would be used to sign the e-documents for company incorporation. To apply for a DSC, documents such as PAN card, photograph and address proof would be required.

  2. Director Identification Number

    1 Working Day

    A Director Identification Number (DIN or DPIN) is a unique number issued by the Ministry of Corporate Affairs (MCA) to maintain the information of the directors of a company in the MCA’s database. All directors of a company (proposed or existing) would necessarily need a DIN number to serve on the board of a company.

  3. Name Approval and License

    Upto 15-20 Working Days

    Once the DIN and DSC have been obtained, the proposed name of the company will have to be submitted to the MCA. The company name should be unique, should be suggestive of the nature of the business, and must comply with the naming guidelines set by the MCA. Our representative will conduct a name availability search to ensure that the name is not rejected on the grounds of similarity. Once the name of the company has been approved, an application for Section 8 Licence will be created and accordingly submitted.

    *Subject to Approval from the Government

  4. Incorporation Documents

    Upto 5-7 Working Days

    After the Section 8 Licence has been procured, our experts will draft the Memorandum of Association (MoA) and Articles of Association (AoA) for the new company. The e-form SPICe 32 will have to be filled in the prescribed manner and submitted along with the supporting incorporation documents, MoA, AoA and subscription statement (if applicable). Once the application has been duly verified and receives government approval, the Certification of Incorporation will be issued, and the same will be e-mailed to you. We will also apply a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the company.

 

Section 8 Company Cost



 
 
 
Consultancy Free
Company Name Availability Search Free
2 DSCs Rs 2,000
Government Fee Rs 4,300
Stamp Duty Rs 1,500*
Notorization Cost Rs 1,000
PAN & TAN Fee Rs 175
Professional Fees Rs 13,580
Goods & Service Tax Rs 2,444
Total Cost Rs 24,999
*Stamp duty may vary state to state
*Extra charges for NRI/Foreign directors or Foreign shareholding companies
 

Documents Required for Section 8 Company


 

Scan copy of the following are needed to incorporate a Section 8 Company

ID Proof

PAN card of all the proposed directors and Passport/Driving License/Voters ID

Address Proof

Utility Bill (no older than 2 months) in the name of the Director, or latest bank account statement

Photo

Recent Passport Photo

Registered Office Proof

Notarised rent agreement and NoC (No Objection Certificate) from the owner (for a rented office), Property registration, House Tax (for an owned property) and Utility Bill (no older than 2 months).

 

What do you get


 

Everything to open a bank account and start your organization

DSC

Digital signature for two directors to digitally sign the documents

AOA

Defines the rules of the business

MOA

Defines the objectives of the business

PAN Number

PAN number of the company to open a bank account

TAN Number

Tax deduction number for filing tax return

Rubber Stamps

Two rubber stamps, one with the name of company and one with the name of director

Incorporation Certificate

Certificate of incorporation bearing company's registration number and details

License

Section 8 company license number

Questions? Call us on 011-408-44560

 

Frequently Asked Questions


What is Section 8 Company?

A Section 8 Company (based on Section 8 of the Companies Act, 2013) is an organisation with the sole objective of promoting art, commerce, science, education, sports, social welfare, research, charity, religion, environment protection or any such non-profit objective, and where company profits are only used for company promotion and development.

Are there legal restrictions for Section 8 Companies?

  • Profits of the company can only be used to promote the company’s objectives.
  • Profits cannot be distributed to the members of the company by way of dividend or any other means.

Can a regular company change its status to a Section 8 Company?

Yes, any company who is already in existence can obtain the status of Section 8 Company by following the same procedure with some additional documents.

Why incorporate as a Section 8 Company?

  • Tax benefits
  • Exemption of registration Stamp Duty
  • No Minimum Capital Contribution from Members

What are the eligibility criteria for Section 8 company registration?

A Section 8 Company can be incorporated only with the sole objective of promoting art, commerce, science, education, sports, social welfare, research, charity, religion, environment protection or any such non-profit objective. Profits, if any, can only be used to promote the company’s objectives and cannot be distributed to the members of the company.

What is the Validity of a Section 8 Company Registration?

Despite changes in shareholders or directors the company will remain in existence until it is wound up, dissolved or merged.

Does one have to present physically to incorporate a section 8 company?

The company incorporation process is done through the MCA’s online portal. You don't have to be present for incorporation of the company. The incorporation forms are filed electronically with scanned copies of the supporting documents and signed digitally.

How many minimum directors are required for a Section 8 Company?

Under the Companies Act, there is no minimum number of directors required for incorporating Section 8 non-profit companies. However, a minimum quorum of two directors has been fixed by the Act for Board Meetings.

Who can become a member of Section 8 Company?

Any individual, company or NRI can become a member of a Section 8 Company.

Who can or cannot incorporate a Section 8 company?

Any person or association of persons (including partnership firm) or any existing company can form a Section 8 company. A Section 8 company cannot be incorporated as a One Person Company.

What are the naming guidelines to be followed for a Section 8 Company?

Rule 8(7) of the Companies (Incorporation) Rules, 2014 specifies that the name of the Section 8 Company shall include the words foundation, forum, association, federation, chambers, confederation, council, electoral Trust, etc.

What is the minimum Capital requirement?

There is no minimum capital requirement for Section 8 Company registration.

Who can become a director of Section 8 Company?

Any individual, NRI or foreign nationals can become a director in Section 8 Company.

  • Director must be a natural person
  • He/she must be over the age of 18 years
  • Director Identification Number (DIN) is mandatory

What are the eligibility criteria for Section 8 company registration?

A Section 8 Company can be incorporated only with the sole objective of promoting art, commerce, science, education, sports, social welfare, research, charity, religion, environment protection or any such non-profit objective. Profits, if any, can only be used to promote the company’s objectives and cannot be distributed to the members of the company.

Can a Section 8 Company be converted into any other company format?

An existing Section 8 Company can be converted to any other form of business by applying before the Regional Director. Upon approval, the company will cease to enjoy the privileges of a Section 8 Company and will have to submit the necessary documents (if any) to change its structure.

Is a Company Secretary mandatory for a Section 8 Company?

No, Section 8 Companies are not required to appoint a Company Secretary

Should the Minutes of Meeting be recorded?

Section 118 of the Companies Act that requires recording of minutes of general meetings, board meetings, and other resolutions, is not applicable to Section 8 Companies unless specified in the AoA of the company.