Section 8 Company Registration under Companies Act, 2013

Section 8 Company Registration is the process of incorporation of an NGO under the Companies Act, 2013. In India, Section 8 Company is for promoting arts, science, commerce, research, religion, charity, protection of the environment, or any other similar object. It also intends to apply all its income, additional earnings, profits, etc. A Non-Governmental Organization can be listed as a Section 8 Company in India as per the Companies Act, 2013 or as a Society under the Societies Act, 1860, or as a Trust under the Trust Act 1882. Scroll down to check more information regarding Section 8 Company Registration in India.

What are the benefits of Section 8 Company Registration?

Following are the benefits of Section 8 Company Registration in India:

Benefits of Section 8 Company Registration

1. Zero Stamp Duty: Section 8 Company is excused from the requirement of paying stamp duty on the MOA (Memorandum of Association) and AOA (Article of Association) of the public limited or private limited companies. Such a requirement is applicable for registration of all different kinds of company structures.

2. Name: This company is not required to suffix Private Limited or Limited after its registered name. It can be registered with specific words such as Association, Council, Institute, Federation, Club, Charities, Organization, etc.

3. Tax Benefits: For this company, various tax benefits are granted to them.

4. No Minimum Capital Requirement: There is no minimum capital that has been formerly mentioned for a Section 8 Company in India. Any company’s capital structure may be different at any stage as per the day-to-day business growth requirements. This also suggests that a company can be formed without any share capital. The funds are necessary for carrying out the business activities, later on in donations or charities or certain subscriptions from the general public and the members.

5. Exemption to the donors: Those people who are donating to a Section 8 Company are always eligible for certain tax exemptions under 12A and 80G of India’s Income Tax Act.

Essential documents required for the Section 8 Company Registration

You can check all the vital documents required at the time of registration for the Section 8 Company from below:

1. Submit PAN card of all the members of the company.

2. Submit the Aadhar card of all the members.

3. The latest bank statement of the company and its members.

4. Submit the latest electricity bill and telephone bill.

5. Voter’s Id of all the members.

6. Passport of all the members of the company.

7. Driving License of all the members.

8. Submit the latest passport size photographs of all the members.

9. Submit a copy of the Rental Agreement.

What is the online procedure for Section 8 Company Registration?

Following is the step by step process of Section 8 Company Registration:

Step 1: Search the Name in the SPICe+ Form: First, you have to search and apply for the company’s name through the SPICe+ form. Section 8 Company must have words like Council, Federation, Foundation, Association, etc., in its name. The application can give two different names at a time and can perform only one resubmission of the company.

Step 2: Obtain MOA and AOA: Once you search the company’s name, the applicant must prepare MOA and AOA. Memorandum of Association works as a charter of the company and clears the company’s realm. For filing MOA, you have to use Form INC-13, and also, there is no specific format mentioned for the AOA of a Section 8 Company.

Each subscriber must have to sign the Memorandum of Association and Articles of Association who may also need to provide name, address, occupation, and description, if any, in the presence of minimum one witness who will affirm the signature and will happen to add and sign his name, address, description, and occupation.

Step 3: Filing of SPICe+ Form:

After obtaining Central Government approval, one may file a SPICe+ form. Following are the attachments of SPICe+:

1. Memorandum of Association (MOA) in INC-13 Form.
2. Article of Association (AOA) (No specified format).
3. Declaration and consent by 1st director in DIR-2 form.
4. Affidavit by 1st subscriber and director in INC-9 form.
5. Pan card of 1st subscriber and director.
6. Aadhar card of 1st director and subscriber.
7. Any proof of registered office such as Lease Deed or Rent Agreement or Sale Deed, etc.
8. Submit the latest water bill, electricity bill, gas bill, or telephone bill, etc., of the registered office.
9. No Objection Certificate (NOC) owner of the registered office (in case if the registered office is rented).
10. The license issued in INC-16 form.

Step 4: Issuance of Incorporation Certificate: Once you submit the form and fees, the verification is conducted by the authorities; after the verification, they will issue you the Incorporation Certificate.

Conclusion

It is essential to get registered under Section 8 Company, the primary purpose of these companies to work for society’s welfare. It operates for charitable objectives; that’s why it has got many exemptions in tax and others. These companies are established to promote sports, education, science, art, commerce, social welfare, charity, or any other charitable organization in India.