Section 8 Company
The main purpose of establishing a company as a Section 8 company under the Companies Act 2013 is to promote non-profit objectives such as arts, charity, education, religion, environment protection, social welfare, sports, research, etc. The profits/incomes of the company, if any, are applied towards promoting the objectives of the company and are not distributed as dividends to its shareholders.
The company registered under the Companies Act 2013 needs to have a license issued by the central government in such a way that all the terms and conditions are written. Through a license, the government will approve a person or persons’ association as a company, and the word “Private Limited” can be added at the end of the company name.
A Private Limited Company Formation provides the most control and strongest presence to any business. Under Section 8 company registration is done as a company that is charitable or for non-profit purposes. This type of company is very similar to a trust or society, but there is only one exception: most of the societies and trusts are registered under the State government. But the company under section 8 is registered with the Central government. Even the company name will have the word “Limited” or “Private Limited”.
Features
- For Online Pvt Ltd Company Registration, A minimum of two directors is required if registered as Private Limited Company.
- A minimum of three directors in case of incorporation as a Public Limited company.
- The maximum number of members is 200 in case of a Private Limited company.
- No minimum number of members in case of Public Limited company.
- No requirement of minimum paid-up capital.
Benefits of Section 8 Company Registration In India
- Provides distinct identity: The word entity means that something has true existence. So the company is a legal entity that is established under the company law. A company is a form of organization that has legal potential that can own property and even can incur debts in its name. No member of the company has a liability to pay company debts because the company and the members of the company are two separate people in the eyes of company law. The company acts as an artificial person with a separate identity.
- Liability is limited: Limited liability or limited liability partnership means the status of being legally responsible for any of the company’s debt only to a limited sum. Like partnerships and proprietorships, the members of the company have limited liability towards the company debt.
- No capital requirement: There is no minimum capital requirement if the person wants to start incorporating a Private limited company. The company can be set up with 0 paid-up capital.
- Less stamp duty: Companies under section 8 have minimum stamp duty liveable. There are certain privileges given to section 8 that leads to less stamp duty on incorporation.
- No suffix: The companies under section 8 may not use any suffixes like private limited as it is completely optional.
- Tax benefits: Section 8 companies can get tax benefits from the government if they are registered under sections 80G and 12AA of the IT act.
Process for Incorporation Section 8 Company
- Apply for the desired name: The very first step for the incorporation of the company is to reserve a name for your proposed company in part-A of the SPICe Plus form for incorporation of Section 8 company. The person can even give two names for the company. If CRC rejects the proposed name, the person needs to fill in again after 15 days from rejection and apply with two other names.
- Do apply for the digital signature certificate: Most of the incorporation of the company work is done online. So the person needs to apply for DSC, which will be used as the electronic signing on the forms by the proposed directors of the company. Digital certificate signatures are mandatory for every member and shareholder of the company.
- Fill out the application form for incorporation: Once the name of the company is reserved, within 20 days of approval, the person needs to fill out the incorporation form with all the required details. This process is done online, where the person also needs to attach documents online. The details regarding all the directors are clearly stated in the application form. The draft of the Memorandum of Association and Article of Association are also submitted to the proposed company.
- Certificate of commencement of business and license under section 8: Once the overall process of approval of the application is done, the company will get a Certificate of Incorporation under section 8, which is issued by the ROC. Within 180 days of approval for incorporation, the company can seek approval for commencement.
You can consult us for corporate payroll services as well.
Checklist of documents
Copy of PAN card, Passport/ Voter-ID/Driving license of Director(s).
Bank Statement of directors(s)/ Electricity bill.
Passport size photo of director(s).
NOC from owner of registered office and rent agreement or sale deed (if any).
Signature specimen of director(s).
Take the help of Aplite advisors for smooth Section 8 Company incorporation
Get in touch with us: If any person is interested in getting to know how the Section 8 companies are set up. You can just get in touch with us. The team of experts will assist all their clients in the best possible way.)
Process and Documentation: Here, the consent of the party is very essential. Our team shares almost all the details and also gives an estimated cost idea that will be required to complete the overall process. Experts will make sure that the overall process is completely transparent before the person starts processing.
Share your documents with us: Our team of experts wants to make sure that there is hassle-free documentation. So, the team asks the person to share all the necessary documents with them so that at the time of the process, everything is put into the sequence of requirements. This improves the chances of approval in just one go.
Processing and Update: The team of experts will provide all the necessary information regarding the process to their clients. We have a specialist for every precision. This might result in no wastage of time in the filing of the application. All the updates are communicated to the person in real-time.
Successful completion: The last step is the successful completion of the case of a company registered under section 8. This way, the team will share all the relevant documents electronically. In case any problem arises, the team also gives assurance to pay you back.
Aplite Advisors is one of the leading financial advisors and consulting firms that offer different services related to startups, Professional accounting services, and financial accounting advisory services for all types of companies. Our in-house team also have expertise in managing the bookkeeping services for small business. Any person can come to us with a query, and we are an Online Section 8 Company Registration Service Provider to offer the best solution.