Section 8 Company

What Is A Section 8 Company?

 

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.

 

In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013. The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders. A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

Choose Your Package

Silver

₹ 13499/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • Copy of e-MOA & e-AOA
  • e-PAN
  • e-TAN
  • ESIC Registration through SPICe Plus
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • Section 8 License

Gold

₹ 26999/-

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • Copy of e-MOA & e-AOA
  • e-PAN
  • e-TAN
  • ESIC Registration through SPICe Plus
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • Section 8 License
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing upto 100 entries (12 GSTR-3B and 4 GSTR-1)

Platinum

₹ 45999

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • 1 Name Approval
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • Copy of e-MOA & e-AOA
  • e-PAN
  • e-TAN
  • ESIC Registration through SPICe Plus
  • PF Registration through SPICe Plus
  • Bank Account opening (feature) through SPICe Plus
  • Section 8 License
  • GST Registration
  • SSI/MSME Registration
  • INC-20A Filing
  • Appointment of 1st Auditor
  • 1 Year GST Return Filing upto 100 entries (12 GSTR-3B and 4 GSTR-1)
  • 1st Income Tax filing upto turnover of Rs. 50 Lakhs
  • 1st Annual Filing upto turnover of Rs. 50 Lakhs
  • Form ADT 1 (Auditor Appointment in AGM)
  • Form AOC -4 (Form for filing financial statement and other documents with the Registrar)
  • Form MGT -7 (Form for filing annual return by a company)
  • 2 DIR - 3 KYC
  • Accounting Book Keeping up to 100 Transactions
  • Professional certification on MGT-7 & AOC 4

 

Who can Incorporate a Section 8 Company?

 

An individual or group of individuals can apply for Section 8 Company Registration if it holds the below-mentioned intentions. The objectives have to be confirmed to the satisfaction of the Central Government.

 

 

 

 

 

 

 

 

Documents Required To Register A Section 8 Company

 

 

1. Passport size Photograph of all the Directors and Shareholders

 

2. PAN and Aadhar card of all the Directors and Shareholders

 

3. ID proof of all the Directors and Shareholders (Driving License/Voter ID/Passport)

 

4. Address Proof of all the Directors and Shareholders (Bank statement/Electricity Bill/Telephone Bill) not older than 1.5 months having name of the respective Director and Shareholder.

 

5. Registered Office Address Proof (Electricity Bill/Water Bill/Gas Bill or any other utility bill) not older than 1.5 months

 

Specific Requirements:

 

1. A Section 8 Company must have a registered office in India. Documents like bank statement or electricity bill should be recent.

 

2. A utility bill, rent agreement or sale deed and an  NOC (Non-Objection Certificate) from the landlord with his / her consent to use the office as a registered office of a company must be submitted as well.

 

 

Steps To Register Your Section 8 Company

 

 

1. Experienced and dedicated personnel assigned for engagement.

 

2. Collection of required documents along with a simple checklist.

 

3. Verification of the Documents as required for Incorporation by our incorporation experts.

 

4. Process of application of Digital Signature Certificate.

 

5. Name approval application submitted to MCA.

 

6. Drafting of the essential documents by our Assigned Personnel based on the MCA approved name.

 

7. Signing of documents by the Directors and Shareholders.

 

8. Submission of documents along with Incorporation Form to MCA for approval.

 

9. After the approval, a license under section 8 will be issued.

 

10.If the ROC is satisfied with the submitted forms, the ROC will issue a Certificate of incorporation.

 

 

Advantages Of Section 8 Company

 

 

Characteristic

 

It operates for welfare of general public, for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such similar object.

 

Exemptions

 

An Non Profit Organization enjoys several exemptions such as no minimum capital, tax deduction to donors as well as to NPOs, exemptions from suffices such as Private Limited or Limited etc.

 

Profits

 

Like a private limited company, a Section 8 Company will have incomes, expenses, profits or losses. But in this form of company, profits can be used only for the charitable or not-for-profit purposes mentioned its MOA.

 

 

Compliances Required By Section 8 Company

 

 

Statutory Auditor Appointment 

 

All registered Indian Companies must appoint a Statutory auditor within 30 days of incorporation. The auditor also needs to be appointed within 15 days from the conclusion of AGM. Therefore, the due date for ROC Form ADT 1 would be 14th October every year.

 

Declaration Of Commencement Of Business 

 

The capital mentioned in the MOA [Memorandum of Association] must be deposited in a bank and commencement certificate must be obtained from MCA within 180 days of incorporation.

 

Hold Annual General Meeting:

 

For a section 8 company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the financial year i.e. 30th September every year

 

 

Accounting

 

Every section 8 Company shall maintain proper books of accounts which shall represent an accurate and fair value of the state of affairs of the company. Accounting is necessary for the statutory audit. Annual filing and Income tax return filing which is mandatory.

 

 

Statutory Audit

 

Every section 8 Company registered under the Companies Act, 2013, irrespective of its sales turnover or nature of business or capital must have its book of accounts audited each financial year.

 

 

MAT Audit

 

It is mandatory for the section 8 Company to get their accounts audited under MAT i.e. Minimum Alternate Tax. The objective of the introduction of MAT was to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay any tax due to various tax concessions and incentives provided under the Income-tax Law.

 

 

ROC Form AOC-4

 

Form AOC-4 needs to be filed for filing Financial Statements in  with the Balance Sheet, Profit and Loss Account, Directors’ Report, Cash Flow Statement, Auditor’s Report, and the Consolidated Financial Statement.

 

 

ROC Form MGT-7

 

The Section 8 Company Company requires to file Annual Return in Form MGT-7 regarding the latest information about the directors and shareholders of the Section 8 Company.

 

 

DIR-3 KYC

 

DIR 3 KYC is a form to be filed by Every director who has been allotted DIN (Director Identification Number). 

 

 

Income Tax Return

 

Income tax returns need to be filed on or before 30th September 2021 for each financial year .

 

Form DIR 8

 

Every Director of the Section 8 Company has to file the disclosure of non-disqualification in each Financial Year.

 

Form DPT 3 

 

The Return of Deposit should be filed before the Registrar of Companies in FORM DPT-3.

 

 

Starting Your Own Section 8 Company With UpriseLegal

 

 

With our experienced and skilled personnel, We at UpriseLegal makes process of registering your Section 8 Company very smooth and helps you in each and every step of company formation. We follow law to the core and uses our knowledge to avoid any hassles in your business so that you can rise and grow! You may get in touch with our compliance manager on 9173512402 or email us at [email protected] for free consultation.