section 8 company registration

About

section 8 company registration

section 8 company registration

• The idea of non-benefit making organization is very old in India. In recent Companies Act, 1956 it was managed by Section 25 and that is the reason it was famous as Section 25 Company. Anyway in Companies Act 2013 arrangements identified with non-benefit making organization are given in Section 8 perused with Rule 19 and 20 of Companies (Incorporation) Rules, 2014.

• Section 8 Company Registration is named Section 8 of the Companies Act, 2013, which relates to a built up 'for advancing trade, craftsmanship, science, sports, instruction, look into, social welfare, religion, philanthropy, insurance of condition or any such other protest', gave the benefits, assuming any, or other pay is connected for advancing just the objects of the organization and no profit is paid to its individuals.

• There might be 3-4 types of a Charitable Organization in India and such association can be framed/enlisted as trusts, social orders, or as a non-benefit company(NGO Company) incorporate dunder Section 8 of the Companies Act, 2013.

• The Name of Section 8 Company Registration can end without the expansion to its name of "Restricted", or by and large, the words "Private Limited". ((Segment 8(1) )

• Section 8 organization enrollment additionally has higher believability among givers, Government offices and different partners.

• A Section 8 Company Incorporation is like a Trust or Society or Ngo Registration; yet a Section 8 Company is enlisted under the Central Government's Ministry of Corporate Affairs. Though Trusts and Societies are enlisted under State Government directions.

• The Registration Procedure of Section 8 Company is that of Similar to Private/Public Company as the case might be aside from of extra necessity of taking License from CG after name endorsement.

NGO Registration Just Rs. 18000 All Inclusive.

ADVANTAGE

A Non-profit making Company is a Company which:

• has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
• intends to apply its profits, if any, or other income in promoting its objects; and
• intends to prohibit the payment of any dividend to its members.

Advantage of Section 8 Company Incorporation:

1. EASE OF FORMATION- A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. Registered partnership firm can be a member in its own capacity.
2. LIMITED LIABILITY: The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Being the biggest advantage with this type of company, it means that the owners are not personally responsible for business debts and obligations of the incorporation.
3. SEPARATE LEGAL ENTITY: This is the most prominent quality of a Section 8 Company. It refers to the statement that company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations
4. CONTINUITY OF EXISTENCE: Death, insolvency and insanity etc of any of the member does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members.In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance..
5. MINIMUM NUMBER OF SHAREHOLDERS : The Minimum Members need to start the business are only2.
6. GREATER FLEXIBILITY: A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law..
7. TAX BENEFITS: A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
8. OWNING PROPERTY: A company being a legal person, can acquire, own, enjoy and alienate, property in its own name. No shareholder/director can make any claim upon the property of the company so long as the company is a going concern.
9. CAPACITY TO SUE AND BE SUED: The company being legal person has full right like a natural person to institute legal proceedings against or to bring a suit in a court of law and also can be sued in its own name.

DOCUMENTS REQUIRED

DOCUMENTS REQUIRED FOR NGO REGISTRATION :

1. Self attested Copy of PAN Card of all the proposed directors.
2. Self attested Copy of ADDRESS PROOF (Voter ID/DL/Passport/Aadhar Card)of all the proposed directors.
3. Self attested Copy of Bank Account Statement/Electricity Bill/Mobile Bill of all the proposed directors.
4. Passport size 4 Photographs of all the proposed directors.
5. Duly signed DSC Form of all directors of the proposed company.
6. Copy of current Electricity Bill/Water Bill/House Tax etc. for the     premises proposed to be used as registered office of the Company.
7. If the property is rented, then Rent Agreement and NoC from owner of property.

INFORMATION REQUIRED WITH REGARD TO THE SECTION 8 COMPANY REGISTRATION :

Directors Detail:

1. Educational Qualification of all the Directors.
2. Profession/Occupation of all the directors with area of Operation
3. Citizenship alongwith Residential Status of all the Directors
4. Place of Birth of all the Directors
5. Permanent & Present Residential Status of all the Directors
6. Contact Numbers of all the Directors
7. Email Ids of all the Directors

Company Detail :

1. Preference wise Proposed names of the Company with Significance of the name 
2. State in which Company is to be registered.
3. Authorized and Paid Up capital of the Proposed Company
4. Main Object of the Proposed Company
5. Division of paid Up capital among the Subscribers.
6. Number of Proposed Directors
7. Number of Proposed Shareholders
8. Whether the promoters are carrying on any Partnership firm, sole proprietary or unregistered entity in the name as applied for?
9. Whether the proposed name(s) contain(s) name of any person other than promoter(s) or their close blood relatives.?
10. Whether the proposed name(s) include(s) the name of relatives?

WHAT YOU GET

WHAT YOU GET after Section 8 Company Incorporation :

1. Unique Director Identification Number(DIN) for Life time.
2. Digital Signature Certificates (DSC)
3. Reservation the Name for your Company
4. Certificate of Incorporation.
5. Rubber Stamp of the Company
6. PAN Card of the Company.
7. Proper Incorporation File
8. Bank account Opening Documents
9. Draft Copies of MOA & AOA.