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Section 8 Company Registration Consultants in Lucknow
MS Legal Associates:
Section 8 Company is a Company licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as Section 25 Company under the Companies Act, 1956, which has main object;
1. For promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
2. Provided the profits, if any, or other income is applied for promoting only the objects of the company.
3. No dividend is paid to its members.
A Section 8 Company is an organization which is registered as a Non-Profit Organization (NPO). NPO/company has its objective of promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions exactly like a limited company including all the rights and obligations that come with such a company. However, it differs from a company in one very crucial aspect, i.e. it cannot use the words "Section 8" or "Limited" in its name.
The income of the Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company. The central government provides an incorporation certificate to all such companies and also informs them about some restrictions and conditions. In case they don't fulfil them, the central government may also order them to wind up the company. In case fraud objectives of the Company are proved, legal action will be taken against all officers of the Company.
List of documents required:
1. Digital Signature Certificate (if you already have it)
2. Director Identification Number (if you already have it)
3. Memorandum of Association
4. Articles of Association
5. ID proof for members: (Aadhar Card, Passport, Voter ID)
6. Passport size Photographs
7. Director's details (if Members are other Companies/LLPs)
8. Address Proof
Steps to Incorporate Section 8 Company Registration
1. Application of DSC & DPIN: First of all, the partners have to apply for Digital signature and DPIN. Digital signature is an online signature used of filing and DPIN refer to Directors PIN number issued by MCA. If the directors already have DSC and DPIN, then this step can be skipped.
2. Name approval: You to provides 3 different name options to MCA of which one will be selected. Names provided should ideally be unique and suggestive of company business
3. Approval of other authorities: The Registrar of Companies may require the applicant to furnish the approval or concurrence of any department,regulatory body, appropriate authority, or Ministry of the Central or State Government(s) in relation to the work to be done.
4. Obtaining Section 8 Company Licence: After the company's name is approved, one needs to apply for a Section 8 Company licence from the MCA.The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers.The Registrar might also consult any other regulatory bodiesandnecessary authorities.
Thereafter, the Registrar of Companies may,at its discretion, grant the licence with or without certain conditions. The Registrar may direct the company to insert in its memorandum, or in its articles, or partly in one and partly in the other, such licencing conditions as may be specified by the Registrar in this behalf.
5. MOA & AOA submission: Once the licence is obtained, one needs to draft Memorandum of association and Articles of Associate. But the object of the company must always be a charitable object. Both MOA and AOA are filed with the MCA with the subscription statement.
6. Get Section 8 Company incorporation certificate: It typically takes 15- 25 days to form a Section 8 company and get the incorporation certificate. The Certificate of Incorporation is proof that a company exists. It also includes your CIN (Company Incorporation Number).The Registrar will wait for 30 days for objections, if any, of any person pursuant to notice published in newspapers.The Registrar might also consult any other regulatory bodies and necessary authorities. Thereafter, the Registrar of Companies at its discretion, may grant the licence. And such licence may contain conditions as deemed necessary by the Registrar.
7. Apply for PAN, TAN and Bank account: Then you need to apply for PAN and TAN. PAN and TAN are received in 7 working days. Post this, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.
ADVANTAGES OF SECTION 8 COMPANY REGISTRATION
1. No Minimum Share Capital Requirement
2. Easy Transfer of Ownership
3. Tax Benefits
4. No need to use "Section 8" or "Limited" title
5. No Stamp Duty
6. Clear Objectives for easy donations and loans
7. Easy to Manage
8. Exemptions and Privileges under Companies Act, 2013
9. Relaxation in Compliances