SECTION 8 COMPANY REGISTRATION

SECTION 8 COMPANY REGISTRATION

A section 8 company refers to a corporation that aims to boost arts, sciences, sports, education, environment, preservation, social welfare, charity, or other similar objectives as per the Companies Act, 2013

INCORPORATION ELIGIBILITY OF SECTION 8 COMPANY

• In India, an Indian national HUF (Hindu Undivided Family) can start a Section 8 Company.
• For establishing a Section 8 Company, presence of at least 1 director is compulsory
• The objective of Section 8 Company must include the advancement of art & science, promotion of sport, charitable activities, education and financial assistance to individuals belonging to lower-income groups.

LEGAL REQUISITES FOR INCORPORATING SECTION 8 COMPANY

There are some legal requisites, which is necessary to fulfill before applying for Section 8 Company

No. of Directors :- In case of operating a Section 8 Company as a private limited company, the minimum number of directors is 2. Similarly, if Section 8 Company wants to perform as public limited company, then a minimum of 3 directors is required.

No. of Members :- The number of members decided by MCA for incorporating a Section 8 Company as a private limited firm is 200. And, in case of performing as a public limited company, there is no such limit on section 8 entities.

Capital Requirement & Name :- As per the companies act, 2013 there is no need of minimum paid-up capital for the section 8 entities.

Those NGOs who are performing as section 8 entities are not required to affix the terms like private limited or limited in their name.

Company Objects :- Those firms who are performing with non-profit objectives are only eligible to secure section 8 registration. In MOA & AOA such objectives must be entail for which it is established. In case of any profit generated by the section 8 entity, should be used to serve its underlying objectives, i.e. charitable purposes or reinvested in company. The profit of such firms is not available for its members in any form.

DOCUMENTS REQUIRED FOR INCORPORATION OF SECTION 8 COMPANY

• Memorandum of Association (MOA) & Articles of Association (AOA).
• Declaration of first director as well as a subscriber (Affidavit is not required)
• Proof of office address
• Copy of utility bills, such as electricity bill, water bill or gas bill
• Copy of certificate of incorporation (COI) of an overseas body corporate ( if any).
• Resolution passed by the promoter company.
• Consent of nominee (INC-3).
• Resident & Identity proof of nominees & subscribers.
• Applicant’s identity as well as residential proof
• DSC (Digital Signature Certificate).
• Declaration of unregistered companies

For AGILE-PRO :-

• Proof of principal place of business
• Evidence of appointment related to the Authorized Signatory for GSTIN.
• Letter of Authorization or resolution copy passed by BOD.
• Acceptance letter as well as managing committee
• For the opening of an account in designated bank, proof of identity related to Authorized Signatory is required.
• Specimen Signature of authorized signatory for EPFO.

PROCEDURE OF INCORPORATION OF SECTION 8 COMPANY

Step 1. Secure DSC from the MCA authorized agencies :-

DSC, i.e. Digital Signature Certificate, it performs as a digital tool for signing of various e-forms & scanned copy of documents. Primarily it is used by the authorized signatory of a company such as director, partners, managing directors, etc. for signing key documentations, the proposed directors of the section 8 companies are required to secure DSC

Step 2. Filing of Spice+ Form :-

The next step is filing of Spice+ form, for this applicant has to visit the MCA portal and create an account on the same. After that, from the service section located on the top menu of the home page, applicant is required to select the Spice+ form option. This will lead the applicant to a brief e-form which entails the two parts, A and part B. Here, Part A will help the applicant to register the company name, and Part B offers the given services :-

• Company Incorporation
• DIN Allotment
• PAN Allotment
• TAN Allotment
• GSTIN Allotment
• EPFO Allotment
• ESIC Allotment
• Opening of Bank Account for the company
• Profession Tax Registration (only for Mahrashtra)

Step 3. Upload mandatory documents and submit the form :-

Now, its time to upload the mandatory documents as mentioned above & go to the payment section for submission of standard fees. After this, click on the submit button to wrap up the application submission formalities