Section 8 Company Registration Online
Section 8 Company Registration gives your organization credibility and trust among donors. It also provides a distinct legal identity, which allows it to enter into contracts and sue or be sued in its own name.
To begin the process, you will need to submit an application form. Then, you will need to prepare the MOA and AOA of your company.
Name Approval
Name approval is an important step in the process of establishing a Section 8 company. It ensures that the name chosen is not already being used by another entity. It also helps in ensuring that the proposed name is clear and concise. Once the name is approved, it will remain valid for 20 days.
Once the name is approved, the next steps include drafting the Memorandum of Association (MOA) and Articles of Association (AOA). The AOA and MoA must be prepared under the specified format by the Companies Act 2013. Once the documents are submitted, it is recommended to track the application status through the MCA portal. This will help in avoiding any delays in the registration process.
Directors or shareholders of a Section 8 company aren’t allowed to receive remuneration, ensuring that profits will go towards social causes. They must also adhere to strict legal compliance frameworks, which enhances the credibility and trustworthiness of the organization.
Limited liability protects the personal assets of members in case of any debts or legal disputes, enabling them to focus on charitable activities without worrying about their financial stability. Additionally, Section 8 companies are exempt from paying stamp duty during the registration process. This reduces the cost of establishment. Section 8 companies also have more flexibility in their capital structure, eliminating the need for a minimum capital requirement.
Incorporation Forms
A section 8 company is a type of business that aims to promote arts, commerce, education, industry, sports, and other social welfare. These companies enjoy perks like tax exemptions, and they can even get funding from the government. However, there are some requirements that you must meet to establish a section 8 company. Among them are a minimum of two members and directors, one of whom must be an Indian citizen. You must also follow the terms imposed by the registrar of companies to maintain your RD 1 license.
The first step in registering a section 8 company is to reserve a name. You must submit a RUN form to the registrar of companies in order to reserve a unique name. You must choose a name that is short, simple, and unique. It must also include the right suffix and project the motif of your organization.
After a name is approved, you must draft a memorandum of association and articles of association. These documents outline your company’s social objectives and governance structure. They must be signed by the filer, which is typically you or your incorporation service.
You must also obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN). All proposed directors need a DIN, which you can get from various certifying agencies. Once you have these documents, you can apply for registration with the Registrar of Companies using form INC-12.
Director Identification Number (DIN)
Before an individual can become a director of a Section 8 company, he or she must obtain a DIN. The process for obtaining a DIN involves filling out an application form and submitting supporting documents, such as proof of identity, address, and age. The regulatory authority then verifies the information and documents submitted by the individual before allotting a DIN to him or her. The DIN of an individual can be canceled under certain circumstances, such as fraud or insolvency.
Once the DIN is allotted to an individual, he or she can begin the registration process for a Section 8 company online. To start with, the individual should submit the required documents and forms to the registrar of companies (ROC). He or she should also apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.
The registrar will then verify the documents submitted and approve the Section 8 company registration. The registrar will then issue the Certificate of Incorporation, which indicates the company’s legal existence. During this stage, it is recommended that individuals seeking to register a Section 8 company seek the guidance of a professional chartered accountant or company secretary. They can help to ensure that the incorporation process is completed smoothly and efficiently. Moreover, they can assist with the annual compliance that needs to be fulfilled by a Section 8 company.
Registered Office Address
A registered office address is a physical location that appears on all official business documents and emails. It helps to meet legal requirements, streamline document management, and support employee engagement and customer service. It also helps companies stay compliant with data protection laws. Moreover, it facilitates the sending of letters and emails to shareholders and directors.
A Section 8 company is a type of company that is registered for charitable or non-profit purposes. It’s similar to a trust or society but has more credibility among donors and departments of the government. These companies can’t make changes to their MoA and AoA without the approval of the central government, and they must follow the GST law and Income Tax Act. They must also pay their fees and taxes in a prescribed manner.
The first step in registering a section 8 company is to reserve the name. This can be done using the RUN form on MCA’s website. Once the name is approved, you can submit your application to MCA online.
After submitting your application, you must wait for 15 days to receive the license from the regional director. The RD will review your objectives and plans before granting the license. Once the license is granted, you can start operations as a Section 8 company. You must also comply with the rules and regulations of the Companies Act and file returns and maintain books.
