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Business Registration - Section 8 Company

PACKAGES

Basic

This package includes:

2 DSC 2DIN.

Drafting of MOA and AOA.

Name approval.

Section 8 company license.

PAN and TAN.

Incorporation fee.


Rs. 12899
+18% GST applicable

Standard

This package includes:

2 DSC,  2 DIN.

Drafting of MOA and AOA.

Name approval.

Section 8 company license.

PAN, TAN.

Incorporation fee.

One year support for TDS filing.


Rs. 14899
+18% GST applicable

Section 8 Companies

Contact us for a comprehensive solution for incorporation of a non-profit Section 8 Company and to obtain a Section 8 company license. Eazy startup offers Section 8 Company registration from Rs.12899/-

A Section 8 Company is a company set up for non-profit and charitable purposes. It is named after the Section 8 of the Companies Act, 2013. A Section 8 Company could be an establishment registered for the development of social welfare, science, commerce, art, education, sports, religion, charity, research, protection of environment or any other such objective, given that the profits, if any, or other income is utilized for developing only the objectives of the company and no dividend will be paid to its members. Therefore, a Section 8 Company registered under the Companies Act, 2013 is intended for non-profit and charitable purposes.

Unlike a Society or a Trust, a Section 8 Company is registered under the Central Government’s Ministry of Corporate Affairs. Whereas a Society or a Trust is regulated by the State Government. In comparison to a Society or a Trust, a Section 8 Company has numerous benefits including better legal standing and better recognition. A Section 8 Company earns more credibility amongst Government Departments, Shareholders, Donors and other stakeholders.

ADVANTAGES

Registration                                              

A Section 8 Company is registered under the Companies Act, 2013, by the Ministry of Corporate Affairs, Government of India.  Therefore, the certificate of incorporation and registration will be issued by the Ministry of Corporate Affairs, Government of India.

Name

A Section 8 company can be registered under names that constitute words like Institute, Organization, Association, Federation, Charities, Foundation, Academy, Club, Council, Development, Society, Chamber of Commerce, and as such.

Management

A Section 8 Company does not possess the concept of Trustees. Trusts are normally managed by a Trustees as per a Trust Deed. Section 8 Companies are managed by a Board of Directors based on the MOA and AOA of the Section 8 Company.

Profits

Just like a Private Limited Company, a Section 8 Company will also incur losses, expenses, and revenue. However, with a Section 8 Company, the profits can be utilized only for non-profit or charitable purposes as outlined in the MOA.

Transferability

A simple alteration to the composition of the Board of Directors allows for a change of management from one person to another of a Section 8 Company. Shareholders can also control a Section 8 Company.

PROCESS

Obtaining DSC & DIN

The proposed Directors of the Section 8 Company require Director Identification Number (DIN) and Digital Signature Certificate (DSC). Directors can obtain DSC and DIN within 2-3 days.

Name Approval & License

With the DIN and DSC of at least two Directors, an application for reservation of name for a Section 8 Company can be submitted to the MCA. Once the name is reserved, a license must be obtained before incorporation.

Section 8 Company Registration

On obtaining the license, registrations documents can be submitted to the MCA for approval.  The application for incorporation in generally 5-7 days, subject to the MCA’s processing time.


FAQ'S

Q: Minimum number of members to start Section 8 Company

A: In a Section 8 company, at least 2 individuals should be as its members.

Q: What are the requirements to be a director?

A: To be as a director in Section 8 Company, one must be above 18 years and a natural person. He can be a citizen of any nation (Indian, Foreigners, and NRIs) but at least one director should be a Resident of India.

Q: Documents required for getting registered for Section 8 Company.

A: Identity and address proof of all the directors and address proof of office where the registered company is going to operate. Pan, Aadhar card and photographs of all the directors is mandatory.

Q: How long does it take to get registered for Section 8 Company?

A: We at Eazy Start-up will help you to complete the registration process within 15 - 20 days.

Q: Is there any necessity  to have a registered office for Section 8 Company?

A: Yes, there is a need for having an address where the registered office is going to operate, which can be a commercial area or residence for the communication with MCA and other financial institutions.

Q: Are FDIs allowed in section 8 companies?

A: FDI (Foreign Direct Investment) is permitted, subject to the compliance of FEMA Regulations. In any case, the equivalent is considered as a Foreign Contribution under FCRA, it very well may be infused uniquely with earlier consent/enlistment from the central government.

Q: Can the promoters of section 8 company be an employee as well?

A: In a section 8 company, a promoter can’t be a paid employee as they are Non Profitable organizations.