Unlock the secrets to making a positive impact in India by learning the step-by-step process of registering a Section 8 Company.
Table of Contents
When it comes to establishing a business in India, one of the options available is registering a Section 8 company. This type of organization is specifically designed for non-profit activities, promoting social welfare, charity, education, and other similar objectives. In this blog post, we will walk you through the step-by-step process of registering a Section 8 company in India.
Understanding Section 8 Companies
Section 8 companies are governed by Section 8 of the Companies Act, 2013. These companies are formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other useful purpose. They do not distribute dividends to their members and any profits earned are reinvested in the company’s objectives.
Benefits of Registering a Section 8 Company
One of the key benefits of registering a Section 8 company is the ability to work towards a social cause without the need to prioritize profits. These companies also enjoy certain tax exemptions and are eligible for government grants and funding. Additionally, Section 8 companies have greater credibility and can attract donations and collaborations more easily.
Step-by-Step Guide to Registering a Section 8 Company
1. Name Approval: The first step is to choose a unique name for your Section 8 company and apply for name approval through the Ministry of Corporate Affairs (MCA) website.
2. Obtain Digital Signature Certificate (DSC): All directors of the company need to obtain a DSC, which is required for filing the incorporation documents.
3. Apply for Director Identification Number (DIN): Each director must apply for a DIN through the MCA portal. This unique number is mandatory for all directors of a company.
4. Prepare Memorandum and Articles of Association: Draft the Memorandum and Articles of Association for the company, outlining its objectives and rules of operation.
5. File Incorporation Documents: Submit the necessary documents, including the Memorandum and Articles of Association, along with the application for incorporation of the Section 8 company to the Registrar of Companies (RoC).
6. Issue Certificate of Incorporation: Once the RoC is satisfied with the documents submitted, they will issue a Certificate of Incorporation, officially establishing the Section 8 company.
Compliance Requirements for Section 8 Companies
Section 8 companies must comply with certain regulations to maintain their status. They are required to conduct annual general meetings, file annual returns, and maintain proper financial records. Additionally, any changes in the company’s structure or objectives must be reported to the RoC.
| Step | Description |
|---|---|
| 1 | Choose a Unique Name: The first step is to choose a unique name for your Section 8 Company and check its availability on the MCA portal. |
| 2 | Digital Signature Certificate (DSC): Obtain DSC for all the proposed directors of the company. |
| 3 | Director Identification Number (DIN): Obtain DIN for all the proposed directors of the company. |
| 4 | Memorandum of Association (MOA) and Articles of Association (AOA): Draft and file MOA and AOA with the Registrar of Companies (ROC). |
| 5 | License under Section 8: Apply for a license under Section 8 of the Companies Act, 2013. |
| 6 | Filing Forms: File all necessary forms and documents with the ROC along with the prescribed fee. |
| 7 | Issuance of Certificate of Incorporation: Upon approval, the ROC will issue a Certificate of Incorporation. |
| 8 | PAN and TAN Application: Apply for PAN and TAN of the company. |
| 9 | Bank Account: Open a bank account in the name of the Section 8 Company. |
| 10 | Commencement of Business: Start the operations of the Section 8 Company within 1 year of incorporation. |
Conclusion
Get
Registering a Section 8 company in India is a rewarding endeavor for those looking to make a positive impact on society. By following the step-by-step process outlined in this blog post and adhering to compliance requirements, you can establish a successful non-profit organization that contributes to the welfare of the community.
Can a Section 8 company earn profits?
No, Section 8 companies cannot distribute dividends to their members and must reinvest any profits earned towards fulfilling their charitable objectives.
What are the benefits of registering a Section 8 company?
Registering a Section 8 company allows you to work towards social causes, enjoy tax exemptions, access government grants, and attract donations easily.
What compliance requirements do Section 8 companies need to follow?
Section 8 companies must conduct annual general meetings, file annual returns, maintain financial records, and report any changes in structure or objectives to the Registrar of Companies.
How can I start the process of registering a Section 8 company?
To start the registration process, choose a unique name, obtain a Digital Signature Certificate (DSC), apply for Director Identification Number (DIN), prepare Memorandum and Articles of Association, and file incorporation documents with the Registrar of Companies.
