Registration of Section 8 Company: Overview, Online Registration Process, Fees
As per Companies Act 2013 of India, a Section 8 company is basicallya non-profit charitable organization. It is an establishment that is set up for charitable purposes. Since it comes under a Non-Governmental Organization (NGO), its aim is not to earn profits.
As per Companies Act 2013 of India, a Section 8 company is basically a non-profit charitable organization. It is an establishment that is set up for charitable purposes. Since it comes under a Non-Governmental Organization (NGO), its aim is not to earn profits.
The Section 8 Company falls under a private limited company with regards to all its commercial and for the purpose of earning profits.
The Companies Act defines a Section 8 company as one of the companies that works with the objectives to promote areas of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection and other objectives.
A Section 8 Company is established due to the several ways it proves to benefit the society as a whole. Some of the ways it helps the society and people living in all sections of the society are by providing basic amenities to the people who do not receive them.
The Government has mentioned some steps which need to be followed for a proper registration of a Section 8 Company in India:
The registration process of Section 8 Company can be easily done online by following certain steps:
The first step in the registration of a Section 8 company registration is to prepare a Digital Signature Certificate (DSC). The company needs to apply for the Digital Signature Certificate (DSC) immediately after deciding that they want to start a company.
Section 8 companies must consist of words like Foundation, Society, Association, Council, Club, charities, Academy, Federation, Chamber of Commerce, Development or anything similar.
After approving the name of the company, the next step is to apply for Section 8 company registration license from the Regional director.
The regional director reviews the objectives and grants a permit for Section 8 Company registration. Regional Director generally takes 15 days to release a license to run as a section 8 company.
After receiving approval from the regional director, the company proceeds to file the section 8 company registration application with the necessary documents before ROC.
Once all verifications are provided to ROC, the ROC will issue a Certificate of Incorporation with a Company Identification Number (CIN).
Once the company receives the License, it needs to draft the Memorandum of Association (MoA) and Article of Association (AoA) in order to file section 8 company registration applications.
The Objective of the company will be detailed in the MoA and the rules.
The company needs to submit the application form to the ROC office along with PAN, TAN and bank account ready while Section- 8 Company registration in India.
The cost for the Registration of Section 8 company registration is as mentioned below:
Some benefits of registering Section 8 company are mentioned in brief:
Eligibility criteria for a Section 8 company registration are as follows:
Since a Section 8 falls under an NGO, it serves the same significance as that of an NGO:
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