Register Section-8 Company in India

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Section-8 Indian Company Registration

The Section-8 Company is one among the types of companies in India, and its primary objective is charitable. Its goals include promoting the humanities, commerce, science, research, education, sports, charity,  welfare, religion, and environmental protection, among others. How do Section 8 companies provide these services without receiving compensation? Yes,  they supply these services through public and corporate donations. These businesses will receive government grants.  the character of Section-8 companies is comparable to that of a Trust or Society, but they’re going to have a great deal of credibility because they are registered with the central government and a statutory auditor provides an audit report at the end of the accounting period. It can appeal to the general public for a worthy cause and easily obtain donations. Through www.mca.gov.in,  the web site of India’s Ministry of Corporate Affairs, donors can verify the financial reports. Section-8 Companies could also be registered as either Public or Private.

Section-8 Company registration is now simplified, as registration are often requested without a license. Alongside the certificate of incorporation, the registrar will issue licenses. The Central Registration Center (CRC), Manesar, Haryana, regulates Section-8 Company Registration on behalf of every state’s Registrar of Companies, Ministry of Corporate Affairs, Government of India. Companies are governed by the businesses  Act of 2013.

On January 26, 2018,  the govt of India announced that there is no incorporation fee for companies with an Authorized Share Capital of up to Rs. 1,000,000/- (Rupees Ten Lakh). Since then, this fee has been increased to Rs. 15 lakh. The stamp tax on MOA and AOA is not required to be paid in the majority of Indian states. As usual, the remaining fees, including Name Availability, Permanent Account Number (PAN), and tax write-off and Collection Account Number (TAN), apply.

Any individual or group of individuals wishing to register a limited liability company for the purposes listed below may apply for Section 8 Company registration. The Central Government must be satisfied that:

(a) its objects include the promotion of commerce, art, science, sports, education, research, welfare, religion, charity, protection of the environment, or any such other object;

(b) the corporate after incorporation intends to apply its profits if any, or other income exclusively to promoting such objects; 

(c) the corporate intends to prohibit the payment of dividends to its members.

Section-8 Company registration in India is conducted exclusively online. Business Setup in India is that the right team for you if you wish to register your business. Register your business with us online today,  and you will be on your way to operating a registered business within 10 business days.

Minimum Requirements to register a Section-8  Company:

DirectorsTwo Directors
ShareholdersTwo Shareholders
Authorised Share CapitalRs.2
Paidup Share CapitalRs.2
  •  
  • Required two directors and two shareholders. Directors and shareholders could also be the same individual. they have to be majors. The director must be a natural person, whereas the shareholder could also be a corporation. one among the directors must be a Native American resident.
  • Authorized Share Capital is that the maximum amount of share capital that can be invested in a company.
  • Paidup Share Capital is that the maximum amount of Share Capital that can be deposited into the Company's bank account.
Directors Documents
    1. Directors PAN
    2. Directors ID Proofs
      Aadhaar Card or Voter ID or Passport or Driver's License
    3. Directors Address Proofs:
      Latest one month Savings Bank statement or
      Latest Telephone Bill on his own name or
      Latest Moblie Bill on his name or
      Latest Power Bill on his own name.
    4. Directors latest passport size photograph
    5. Directors Email ids
    6. Directors Mobile Numbers linked with their Aadhar
    7. Incase of Foreign direcrtors, International Passport is mandatory
Company Documents
  1. Registered Office Address Proof: Latest Power Bill
  2. No-objection letter from the Landlord.
  3. Rental Agreement from the landlord if the premises are rented.
  4. Company email id.

Section-8 Company Registration Advantages:

Limited Liability:

The members of the corporate have limited liability. Directors and shareholders aren’t personally liable for the company’s debts.  as an example, when a corporation defaults on the repayment of a debt or loan,  the administrators or Shareholders’ personal assets are protected.  they will only recover the loan amount by selling the company’s assets.

Donation and Grants:

Section-8 Company can easily solicit public donations. This category of NGOs can easily obtain government grants. If a corporation receives licenses under Sections 80G and 12A of the Income Tax Act of 1961, the donors will receive tax benefits under section 80G of the tax  Act and the company will be eligible for tax benefits under section 12A.

Stamp Duty:

In most Indian states, Section-8 companies aren’t required to pay stamp duty upon incorporation, with the exception of Odisha,  Andhra Pradesh, Telangana, Meghalaya, Manipur, Nagaland, Tripura, Arunachal Pradesh, Mizoram, Kerala, Lakshadweep, Madhya Pradesh, and Rajasthan. This company’s formation is a smaller amount expensive than the incorporation of for-profit corporations.

Director Dual Role:

The Director of the corporate may also be an employee. He can rent or lease his own property to the corporate and collect rent, he can give the corporate a loan and receive a loan from the company, and he can provide the corporate with goods or services in exchange for payment.

Separate Entity:

Members of the corporate may come and go, but the corporate itself cannot, indicating that the members and therefore, the company are distinct entities. Company can own and sell assets in its own name.  it’s the ability to sue and be sued in a court of law.

License under FCRA:

 A Section-8 organization can easily obtain a license under the Foreign Contribution Regulation Act of 2010 and receive contributions, donations, and grants from abroad. Section-8 companies have a neater time obtaining a license under the Foreign Contribution Regulation Act compared to other non-profit organizations.

Section-8 Company ~ Trust ~ Society

There are primarily three sorts of non-profit organizations in India, namely Section 8 Companies (previously Section 25): Section 20 of the Societies Registration Act of 1860-registered organizations. Trusts were established by the Indian Trusts Act of 1882. The differences between Section-8 Company, Trust, and Society are outlined below.

ParticularsSection-8 CompanyTrustSociety
Governing LawCompanies Act, 2013Indian Trusts Act, 1982Societies Registration Act, 1860
Rigistering AuthorityRegistrar of CompaniesSub-RegistrarSociety Registrar
Minimum Members2 Directors cum 2 ShareholdersTow members7 Members
Cost of FormationHighMediumLow
ComplianceHighLowMedium
Grants and SubsidiesHighMediumMedium
FCRA PreferenceHighly preferredLow preferredLow preferred
Section 80G & 12 AAllowed to be registeredAllowed to be registeredAllowed to be registered
Stamp DutyIn most of the Indian states, it is not requiredTo be paidNot required
TransperencyHighLessLess

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Get Certificate, DINs, DSCs, MOA, AOA, PAN, TAN, GST, MSME, IEC, PF, ESI, PT*, Bank A/c, Share Certificates & GST Software along with your CIN under 10 working days!

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How to Register a Section-8 Company

Below are the three steps involved in registering a corporation.

Through eMudhra - One Hour Job
Digital Signature Certificates

We will apply for Class-III DSCs online via the eMudhra Portal. The OTPs are going to be generated on your Aadhaar-enabled mobile numbers,  we'll submit the same OTPs,  and therefore the system will then send you a link to the video recording via SMS and email. The DSC  are going to be approved by the eMudhra team following the submission of your video recording. Then,  we'll retrieve the DSCs from ePass Tokens and use them to sign incorporation documents.

Through MCA Portal - 5 to 7 Days
Incorporation

We will prepare the documents you provide in the order provided, i.e. PAN, ID Proof, and Address Proof as one document.  we'll also prepare the Form DIR-2, Form INC-8, Verification under Rule 25 of the businesses  Incorporation Rules 2014, draft the most objects of the company, and prepare the eSprice+ Form, eMOA, eAOA, and eAGILE+ Form and upload them to the MCA portal upon payment of the specified fee.

Through eMail - 1 Day
Certificate of Registration

After examination, MCA officials will approve the appliance and email you the License under Section-8 and Certificate of Incorporation. MCA  also will send you DIN approval letters via email. NSDL will send ePAN and eTAN to you via email. Additionally, your company's PF and ESI registration numbers are going to be automatically generated alongside your Zero Balance Company Current Account.  we'll also email you the MOA, AOA, and other documents.

What All You Get
  • Certificate of Incorporation
  • Articles of Association
  • GST Registration
  • Import Export Code
  • Digital Signature Certificates
  • Company PAN
  • MSME Registration
  • Commencement of Business
  • Director Identification Numbers
  • Company TAN
  • PF Registration
  • Company Resolutions
  • Memorandum of Association
  • Company Bank Account
  • ESI Registration
  • Company Agreements

Why Business Setup in India?

Since our inception as an Official Company Registration Agent, we have maintained close ties with the Ministry of Corporate Affairs, Government of India. From day one, our intention has been to offer a streamlined incorporation procedure that is quick and easy to utilize. Today, our system for company registration is among the most efficient and effective in India. You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days. In addition to maintaining affordable pricing for company formation, we are constantly investigating new ways to bring value to our clients. We are proud to be one of the least expensive ways to establish a business in India.

We have the knowledge to advise clients on the appropriate company structure to implement. The majority of our clients want assistance registering a business limited by shares. The limited company structure is prevalent because it permits the distribution of profits to shareholders while safeguarding them through restricted liability. Our team has more than 2 decades of experience founding companies and providing corporate and secretarial services, which aids in the growth of tens of thousands of our clients’ enterprises each year.

We are tremendously passionate about the quality of our service, and we are incredibly proud of the reviews we get from our customers, as evidenced by our outstanding reviews and ratings. Continually, our team is chosen due to the value and skill for which it is renowned. We have helped form the industry by giving our customers innovative business services and packaged solutions that have grown alongside their demands.

Our clients have access to complimentary help from a team of experts. We are always prepared to assist. Throughout the registration of your Company, you will be enabled to contact us by phone or email if you require assistance.

No Hidden Charges

We believe in transparent and straightforward pricing. The price displayed is the price paid. There are no additional fees associated with business registration.

Rapid Service

You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days.

20 Years of Expertise

Our staff has over 2 decades of experience, making us specialists in our industry. Take the stress out of establishing your business, and rest easy knowing you have the assistance you need to thrive.

Reliable Service

Today, our customers expect exceptional service. Because of this, we are very pleased that 99 percent of our customers have rated us as "Great" or "Excellent" on Google.

Simplicity

The entire procedure, from ordering to utilizing your company registration license, is designed to be as simple and direct as possible to aid in the growth of your firm.

Privacy and Protection

Customer confidentiality and safety come first. We safeguard your financial, business, and personal information to the utmost degree.

What Comes Next After Company Registration?

Congratulations on registering your new nonprofit organization!  the bulk of entrepreneurs do not know what to do after registering their company.  the opposite mandatory registrations and statutory compliance requirements of a company are listed below.

Compliance with Section 8 Requirements

Appointment of First Auditor Within 30 Days

 Appointment of First Auditor Within 30 Days you want to appoint a First Auditor of the Company within 30 days of the date of incorporation and file Form ADT-1 with the MCA within 15 days of the appointment, or a maximum penalty of Rs. 3,900/-  are going to be payable.

Business Commencing Within 180 Days

You must file Form INC-20A with the MCA declaring the deposit of Share Capital amount within 180 days of Incorporation; otherwise, the MCA will cross off your company.  some banks also require you to submit this Form, failing which they're going to not activate your Company's Current Account.

Chairman KYC On or before April 30

Every Director who has been issued a DIN by the top of the financial year and whose DIN status is "Approved" will be required to submit form DIR-3 KYC by the 30th of April of the following fiscal year. Failure to file incurs a fine of Rs. 5,000 per Director,  and therefore the  MCA will deactivate his or her DIN.

Board Meetings

Section-8: Four Board Meetings Twice Each Quarter The Board of Directors of the corporate must meet twice per year.

General Annual Meeting (AGM)

Every company is required to carry out an Annual General Meeting of its members on or before September 30th, within six months of the top of its fiscal year.

Annual Report Within 30 Days of Annual Meeting

Every company is required to file its Annual Report on Form AOC-4 with the MCA within 30 days of its AGM.

Seven Annual Returns Within Sixty Days of the AGM

Every company is required to file its Annual Return on Form MGT-7 within sixty days of its AGM.

Form 1040 Return

Every Company is required to file its annual tax  Return on Form ITR-6 by the 30th of September or before.

TDS Return

Every Company required to file TDS returns must do so within 31 days at the end of each quarter to avoid incurring penalties.

GST Returns

within 20 days of the quarter's end

Any company required to file GST returns using QRMS must do so by the deadline or face fines.

Different Registrations

Registration for GST

If you're a taxable dealer in the sale of Goods or the provision of Services,  you're required to register for GST. If the corporate is registered under Section 12AA of the Income Tax Act of 1961 and the services it provides are for a charitable cause, then the corporate is exempt from GST.

License under Section 80G & 12A

Section 80G of the tax  Act allows a deduction for contributions made to certain relief funds and charitable organizations. Section 12A specifies which relief funds and charitable organizations are exempt from paying tax on their surplus income.

Form 10A  are often used to request exemption under section 12A of the Income Tax Act as well as permission under section 80G. Donors and charitable organizations enjoy having both permissions from the Income Tax department because the donor can claim a deduction from his gross total income and the charity can claim exemption from paying income tax on excess income.

FCRA Registration

Foreign Contribution Regulation Act, 2010 licenses are required if your business wishes to simply accept contributions and donations from abroad (FCRA).

IPR Registration

If you would like to protect your company, brand,  literary composition, or invention,  you want to file an application for a Trademark, Copyright, and Patent with the Intellectual Properties Department of India.

NITI Aayog Registration

Registration with NITI AYOG is required for NGOs seeking government grants.

Import Export Code (IEC)

Import Export Code (IEC) training is required if your business intends to import or export products or services.

MSME Registration

To receive the benefits of The Ministry of Micro, Small, and Medium-Sized Enterprises Act, registration is required.

Local Trade License

The new business must submit an application for a local business license to the local municipality or municipal corporation.

DOT License

DOT License As a statutory requirement, BPO organizations must obtain a DOT license from the Department of Telecom. This License is available only to Private Limited Companies.

Drug License

If your Company manufactures and distributes pharmaceuticals, you must obtain a Drug License from the office of the state's Drug Controller.

PF Registration

If your Company is subject to the PF Act, you must obtain PF Registration. Now that MCA provides PF Registration along with Incorporation, you are no longer required to submit a separate application; nonetheless, you must enroll employees once the threshold limit is exceeded.

ESI Registration

If your Company is subject to the ESI Act, you must obtain ESI Registration. Now that the MCA provides ESI Registration along with Incorporation, you are no longer necessary to register separately; nonetheless, you must enroll employees once the threshold limit is exceeded.

PASARA License

If your business provides security guards, you must obtain a license under the Private Security Agency Regulation Act. This application must be filed to the individual state's Department of Homeland Security.

Drug License

If your Company manufactures and distributes pharmaceuticals, you must obtain a Drug License from the office of the state's Drug Controller.

ISO Accreditation

If you desire market credibility, you can obtain ISO Certification.

Let's Deal With Your Confusions

DIN is the abbreviation for Director Identification Number. Following the incorporation of the Company, every director will be assigned a unique Director Identification Number. With this DIN, he or she can register an unlimited number of businesses.

A DIN holder is required to submit his KYC to the MCA annually by the 30th of September or face a penalty of Rs. 5,000/-.

DSC is an abbreviation for Digital Signature Certificate. Shareholders must possess a Class-III Digital Signature Certificate in order to register their organization.

There are various organizations that issue Class-III DSCs. These organizations are referred to as DSC Certifying Authorities. We have formed a partnership with eMudhra Tamil Nadu. eMudhra is one of India's most prominent Digital Signature Certifying Authorities.

Approved share capital is the maximum amount of capital that shareholders are permitted to invest in the Company. In actuality, this is the permitted investment limit for Equity Share Capital.

Paid-up share capital is the amount of money shareholders deposit into the Company's bank account towards share capital.

Now, a business can be registered with a minimum share capital of Rs. 2/-or investment of Rs. 1/- from each shareholder.

A CIN is an identification number assigned to a company by the Ministry of Corporate Affairs when they are issued the Certificate of Incorporation.

It might serve as the Company's identification number.

If we apply for direct incorporation without a Certificate of Name Availability, the process could take between three and five business days. Occasionally, it can be implemented in a single day.

However, it is recommended to apply for a company name before incorporation, which may take between 10 and 15 days.

Yes!

No, you cannot register a company on your own since Professionals such as a Company Secretary or a Chartered Accountant must digitally sign the application forms alongside a Director before your Company can be registered.

 For a two- person private  Ltd., the minimal share capital is Rs. 2/-, while for a one- person private  Ltd., the minimal share capital is Rs. 1/-.

Two Directors.

At Business Setup in India, we simplify the process of starting and running a successful business. Our expert team offers comprehensive services, from legal support to accounting and business advisory, tailored to meet the needs of entrepreneurs and companies.

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