Section 8 Company

Section 8 Company

As per Section 8 of the new Companies Act, 2013, a Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object", provided it "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.

A Section 8 Company is similar to a Trust or Society except, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.

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Section 8 company registration procedure

To register a section 8 company in India, the process is similar to the incorporation of other companies (except an additional license is required). The applicant looking to start a section 8 company is required to file Form INC-1 for name availability. Once the name is approved, there is a further requirement of obtaining a license for a Section 8 Company, for which Form RD-1 is to be filed in order to obtain a license for such company. After obtaining license number, applicant can proceed further to incorporate a company by filing e forms INC-7, INC-22 and DIR-12 or e-forms INC-7 and DIR-12 as the case may be.

 

DSC and DIN Application:

Digital Signature Certificate (DSC) and Directore Identification Number (DPIN) are required to obtain for all the Proposed Partners. You will need to provide required scanned documents, within 5 to 10 working days you will get your DSC and DIN.

Sec 8 Company Incorporation:

As soon as we apply for the DSC, we will ask you for the unique name you wish to give to your company, as well as some scanned documents regarding the proposed company and its directors. These will be used to file for incorporation with the MCA. At this stage, you will also need to pay government fees. The Certificate of Incorporation will be approved at the end of this process.

PAN and TAN Application:

Every Company needs a registered Permanent Account Number (PAN) and Tax Account Number (TAN). We will make the application online ourselves; you need to provide the all required Documents. The PAN and TAN will be couriered to your registered office address in 21 working days.