Section – 8 Company Registration
A Section – 8 company registration with EOB comes with simple and hassle-free services handled by our experts.
Fee: Rs. 17500 (All Incl).
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Section – 8 Company Registration
What was earlier called a Section 25 company is now called Section – 8 company under the new Companies Act 2013.It is one of the most popular forms of Non- Profit Organizations in India.
A section – 8 company registration is done with the objective to promote any activity such as promotion of Arts, Handicrafts, Science, Sports, Environment, commerce, religious purposes, charity etc. It is usually called a Non-Profit organization. Importantly, the Act doesn’t prohibit the company from making a profit. But it prohibits distribution of profit amongst its members. So, the profits must be used towards the charitable purpose for which the company is registered. It comes with the benefits of exemption from taxes and compliances.
ADVANTAGES
Advantages of Section 8 company
A section 8 company gets complete tax exemption, and an added benefit is that the donors also claim tax exemptions for donations made to such companies.
The members of a Section 8 company have the protection of limited liability through this structure. It is limited only to the extent of subscribed & unpaid capital. It helps and protects the promoters since they do not draw any share of the profits generated.
A section 8 company has no mandatory requirement for minimum capital. The capital structure can be changed at a later stage or any stage as per the company’s growth plans and requirements.
Unlike other company structures, a section 8 Company is exempted for the payment of stamp duty applicable for registration.
A Section 8 Company has its own separate legal standing from the members of the company. It has a perpetual existence.
Its always recommended to for a section 8 company instead of a trust or society for non profit since this company structure has a lot of credibility since its licenced by the central government (Govt of India). Its however important to note that there can be no change in MoA or AoA in a section 8 company at any point in time.
ONLINE REGISTRATION
Documents required for formation of Charitable Company
THE PROCEDURE
The Procedure for Section 8 company registration
There are a series of steps before the company formation is completed. They are listed below for easy reference. The entire procedure takes 10 to 12 working days to complete (Based on standard government processing time).
- Apply for Digital Signature Certificate (DSC) for Members
- Check Name availability& Name Reservation under RUN.
- MoA & AoA to be drafted with other required documents.
- Notarize required documents
- Apply to grant a license in form INC-12 & in form INC-16
- Filing application for company registration
- Application for DIN Allotment & for PAN and TAN of company
- Certificate of Incorporation
FREQUENTLY ASKED QUESTIONS
Explore Section 8 Company Registration
Is there any minimum capital requirement?
No. A section 8 company has no minimum capital requirement. It’s enough to introduce as much capital as is needed to start and run the company.
Are there any minimum requirements for registering a Section 8 ( charitable company) in India?
Yes. There are a few minimum and simple requirements to ensure. Firstly, the company must be formed for a charitable purpose. Secondly, the company requires a minimum of 2 members to subscribe to the capital at the time of incorporation. A minimum of 2 directors are required for the company of which one should be a resident Indian. The registered office of the company should be located in India.
How to reserve the name of company?
The reservation of the name can be made online through a form called “RUN” and you can suggest up to two names. In case the name doesn’t fulfil the requirement, the registrar may ask to re-submit the application with a different name(s).
Is the registration procedure completely online?
Yes. The entire procedure is online and there is no need for the physical presence of any of the members during the registration process.
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