Section 8 Company

• HOW IT IS GOVERNED
  It's governed by Indian Companies Act, 2013.
• COMES UNDER WHOSE JURISDICTION
  Regional Director & Registrar of Companies of concerned state.
• WHAT IS MAIN DOCUMENT REQUIRED
  MOA & AOA
• WHETHER STAMP DUTY IS CHARGED
  No Stamp Duty Required
• MINIMUM MEMBERS REQUIRED
  2
• MANAGED BY WHOM
  Board of Directors
• LEGAL TITLE HELD BY WHOM
  Properties held in the name of Society
• CAN IT BE DISSOLVED
  Yes, it can be dissolved
• WHAT IF IT BECOMES INEFFECTIVE/DISSOLVED
  On Dissolution, funds, and property not transferred to members of Co. but to some other similar section 8 Co.
• DOES ANNUAL RETURN NEED TO BE FILED
  Required to be filed with ROC
• ONLINE FILING FACILITY AVAILABLE?
  Available
• LEVEL OF DIFFICULTY OF COMPLIANCE AND TIME INVOLVED?
  Easy, Time saving and transparent procedure
• TIME TAKEN FOR REGISTRATION?
  20-30 working days
• COST INVOLVED
  High
• CAN 12A AND 80 G BE TAKEN?
  Yes
• WHETHER PREFERRED FOR GOVT. SUBSIDY/GRANT?
  High preference
• WHETHER PREFERRED FOR FCRA REGN?
  High preference
• TRANSPARENCY IN WORK
  Very High because everything is online
• DIFFICULTY IN CHANGING TRUSTEES OR BOARD
  Easy
• DIFFICULTY IN CHANGING REGISTERED OFFICE
  Easy

Procedures for Section 8 Company

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;

• For promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object,
• provided the profits, if any, or other income is applied for promoting only the objects of the company and
• No dividend is paid to its members.

Therefore, Section 8 Company is a company registered for charitable or not-for-profit purposes.
Section 8 Company has various advantages when compared to Trust or Society. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
Further, the key feature of a Section 8 Company is that name of the Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be.
(Note: Requirement of minimum capital under the Act shall not apply to Section 8 Company vide Notification of June 5, 2015).

Procedure for Registration of Section 8 Company:

• Minimum two people required for registration of Section 8 Company.
• Obtaining Digital Signature Certificate (DSC) for proposed Directors not having Directors Identification Number (DIN)
• Obtaining DIN from Ministry of Corporate Affairs by filing Form DIR-3, if not having DIN.
• Filing of Form INC-1 for Reservation of Name.
• Post approval of name from the concerned Registrar of Companies, file Form INC-12 {pursuant to Section 8 (1) of the Act and Rule 19 of Company (Incorporation) Rules, 2014} (the Rules)

Attachments to Form SPICe:

• Draft Memorandum of Association of the proposed company in Form SPICe
• Draft Articles of Association of the proposed company
• Declaration by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant in Form SPICe MOA
• Declaration from each person making application in Form SPICe AOA
• Estimated Income and Expenditure for next 3 years.
• (Note: Form SPICe is in physical mode and the e-form is not yet available on MCA21 Portal. Thus, the same needs to be filed in Form SPICe MOA with prescribed fees).

Attachments to Form SPICe MOA:

• Form INC-12
• Draft Memorandum of Association of the proposed company in Form SPICe
• Draft Articles of Association of the proposed company
• Declaration by Practicing Chartered Accountant / Practicing Company Secretary / Practicing Cost Accountant in Form SPICe MOA
• Declaration from each person making application in Form SPICe AOA
• Estimated Income and Expenditure for next 3 years
• The Central Government after examining grants the license in Form SPICe
• After obtaining the license, following forms need to be submitted with prescribed attachments
• Form SPICe
• Form SPICe MOA
• Form SPICe AOA
• Post Scrutiny of the submitted forms and documents the Corporate Identification Number (CIN) will be issued by the concerned Registrar of Companies.

List of documents required:

• Identity Proof: Copy of Permanent Account Number (PAN) of all Directors/Promoters (Mandatory)
• Address Proof: Copy of valid Passport/Driving Licence/Aadhar/Telephone Bill/Electricity Bill (not older than 2 months)
• Latest passport size photographs of all Directors/Promoters
• Rent Agreement or Leave &Licence Agreement, if registered office premise is taken on rent
• Utility Bills of proposed registered office
• Consent to act as Director in Form SPICe
• Directors Directorship details in other Companies/LLPs, if any.