Starting a Section 8 company is a noble step towards social welfare. This type of company aims to promote commerce, art, science, sports, education, research, social welfare, religion, charity, and protection of the environment. Section 8 companies are known for their non-profit motives. I’m Deeksha Khurana, associated with Taxlegit, providing the best Section 8 company registration consultancy. Let’s dive into the process of registering a Section 8 company.
Understanding Section 8 Company
A section 8 company registration, under the Companies Act, 2013, is similar to a trust or a society. The key difference is that it is registered under the Ministry of Corporate Affairs. This gives it greater recognition and credibility. These companies do not aim to generate profit but to work for social causes.
Benefits of Section 8 Company
- Tax Exemption: Section 8 companies enjoy tax benefits.
- Credibility: Registration under the Companies Act adds credibility.
- No Minimum Capital: There is no minimum capital requirement.
- Separate Legal Entity: The company has its own legal standing, separate from its members.
Steps for Section 8 Company Registration
1. Obtain DSC and DIN
First, get a Digital Signature Certificate (DSC). The DSC is crucial for filing online forms on the MCA portal. After obtaining the DSC, apply for the Director Identification Number (DIN) for all directors of the company. This step is essential for the incorporation process.
2. Name Approval
Next, choose a name for the company. The name should not resemble any existing company name. It must align with the objectives of the company. File Form INC-1 with the Registrar of Companies (ROC) for name approval. Once the name is approved, proceed to the next step.
3. Drafting MOA and AOA
Draft the Memorandum of Association (MOA) and Articles of Association (AOA). The MOA outlines the objectives and goals of the company. The AOA defines the rules and regulations governing the company’s operations. Ensure the objectives stated align with the purpose of social welfare.
4. Filing Form INC-12
Submit Form INC-12 to the ROC. This form is for the issuance of a license to operate as a Section 8 company. Attach the following documents with the form:
- MOA and AOA
- Declaration by professionals (Chartered Accountant, Company Secretary, etc.)
- Estimated income and expenditure statement for three years
- List of directors and promoters
- Details of directors and promoters (PAN, address proof, etc.)
5. Incorporation Certificate
Upon successful verification of documents, the ROC issues an incorporation certificate. This certificate is proof of the company’s existence. It allows the company to commence operations legally.
Compliance Requirements
1. Annual Filing
Section 8 companies must file annual returns and financial statements with the ROC. This ensures transparency and accountability in operations.
2. Tax Filing
These companies must file income tax returns. They may enjoy certain tax exemptions, but compliance with tax laws is mandatory.
3. Audit
Conduct annual audits. This is crucial for maintaining financial integrity and transparency.
Additional Registrations
LLP Registration
If you plan to operate as a Limited Liability Partnership (LLP), register accordingly. LLP registration provides the benefits of limited liability and a partnership structure.
DSC Registration
Ensure all directors have a valid dsc registration. This is essential for online filings and other digital transactions.
Conclusion
Registering a Section 8 company involves several steps, but it is a rewarding process. It helps in achieving social goals while enjoying several benefits. I, Deeksha Khurana from Taxlegit, am here to assist with the best Section 8 company registration services. Follow these steps, and contribute to societal welfare effectively
